The Legal Industry's Biggest Shift Isn't in the Courtroom
A new wave of AI-native law firms are reshaping the legal industry by attracting Big Law talent with AI-first workflows, alternative pricing models, and greater flexibility. Founded by former attorneys from firms like Perkins Coie, Cooley LLP, WilmerHale, and Sidley Austin LLP, firms such as Talairis Law Group, Soxton.AI, General Legal (YC26), and Norm Law are integrating AI into every aspect of legal work while offering flat fees, subscriptions, and equity opportunities instead of the traditional billable-hour model. Although these firms remain much smaller than Big Law, industry experts believe their rapid adoption of AI signals a lasting shift, with many predicting that firms that fail to embrace AI risk falling behind.
MARKET MOVEMENTS
Sheppard hires 2 partners, Dan Collins and Levi Giovanetto, to launch white-collar investigation practice in Chicago
Gibson Dunn hires ex-Blackstone, Simpson Thacher partner, Angus Lennox
Ex-K&L Gates legal ops chief, Bart Gabler, heads to Jackson Lewis P.C.
King & Spalding adds finance partner, Gloria Kim, in New York from Proskauer
FIRM SPOTLIGHT - MILBANK LLP
Milbank LLP is a global corporate law firm with more than 150 years of history, recognized for its strength in corporate finance, restructuring, project finance, litigation, and energy. The firm advises leading financial institutions and corporations on high-profile M&A, bankruptcy, securities, and infrastructure matters, earning top rankings across multiple practice areas. Known for handling landmark restructurings and major energy and infrastructure projects worldwide, Milbank also stands out for its innovative associate development programs, including its award-winning Milbank@Harvard leadership training initiative.
INDUSTRY INSIGHTS
Lateral hiring at large U.S. law firms slowed in the second quarter of 2026 after a strong start to the year, with associate and counsel moves declining while partner hiring remained relatively steady, according to figures from legal data company Firm Prospects. The data, which tracks attorney moves among the 200 largest U.S. law firms by revenue, showed firms made 3,205 lateral hires during the quarter, down 15.1% from 3,776 in the first quarter and down 4.5% from 3,356 in the second quarter of 2025.
At least 11 partners have left Clifford Chance in the U.S. between July 2025 and July 2026, according to SurePoint Technologies data, whose departure figures include lateral moves and retirements. Most recently, the firm saw seven additional partner exits in the first two weeks of July 2026, going to Sidley Austin LLP and Simpson Thacher & Bartlett LLP. In comparison, Clifford Chance brought in 10 partner hires from June 2025 to June 2026. However, the firm’s own numbers show a 40% growth in its U.S. partnership since 2023.
Results from an annual private equity survey from Paul, Weiss, Rifkind, Wharton & Garrison LLP, released in late June, highlight that while PE fundraising in Q1 was up 11% from Q4 of 2025, overall PE fundraising was down 8% from 2024.
K&L Gates has cut its nonattorney and business support staff by 10% following a monthslong review of its structure, the firm told Law360 Pulse Friday.
Paul Hastings Bets Big on the Booming Sports Industry
Paul Hastings is expanding into the rapidly growing sports sector with the launch of a dedicated sports industry practice, reflecting Big Law’s increasing focus on sports as franchise values and private investment continue to rise. The firm has recruited former Baltimore Ravens general counsel Brandon Etheridge and other experienced sports attorneys to advise investors, owners, and financial institutions on team acquisitions, financing, stadium developments, and other complex transactions. By combining its strengths in private equity, asset management, and finance, Paul Hastings aims to become a leading player in the evolving sports law market.
DOJ Issues Sweeping Subpoenas to 14 Major Law Firms
The U.S. Department of Justice has issued sweeping subpoenas to 14 law firms, including firms that reached agreements with President Trump and those targeted by executive orders, seeking communications related to the administration’s law firm policies, executive orders, and negotiations. As part of an ongoing legal dispute with the American Bar Association, the DOJ is also requiring firm leaders to sit for depositions while requesting extensive records involving Trump adviser Boris Epshteyn, internal communications, and social media activity. The subpoenas significantly expand the scope of the investigation and add another layer to the legal battle over the administration’s treatment of major law firms.
