Law Firms and Professional Services Companies Confront AI Talent Shortage

Professional‑services firms are under pressure to invest in artificial‑intelligence tools but face constrained budgets and legacy‑heavy IT stacks. Leaders cite low billable utilisation (66.4%), slipping client NPS and modest EBITDA, prompting a shift toward cloud‑based, integrated platforms that can supply the single source of truth AI needs. High‑performing firms that have modernised their core ERP systems are reporting significantly higher revenue growth and profitability.

Large law firms are experiencing a parallel crisis in talent. More than 25 AI‑related senior roles are advertised across at least 16 firms, with salaries ranging from $200,000 to $440,000. The pool of candidates who combine deep AI expertise with legal experience is extremely thin, driving firms to invest in internal training programs and AI academies rather than rely solely on external hires. The shortage is prompting a broader industry focus on building AI capability from within.