Following a year of extensive testing, India's leading law firms are setting their sights on 2026 for a fundamental shift. The goal is no longer just experimenting with artificial intelligence but deeply embedding it into the very fabric of their daily legal work. This transition is driven by client demands for faster, more insightful services and sharper pricing, even as firms grapple with critical questions around talent, governance, and increasing judicial oversight.
From Pilots to Core Infrastructure
The focus for the coming year is sharply defined. Firms are not merely looking to add more technological tools to their arsenal. Instead, the priority is a comprehensive redesign of legal workflows where AI can consistently enhance speed, accuracy, and predictability. Senior partners indicate that AI deployment is already active in areas like legal research, knowledge management, due diligence, drafting, and dispute preparation, though adoption varies significantly between different practice areas.
Some firms are advancing rapidly. Cyril Amarchand Mangaldas reports it has moved decisively past the pilot phase. Managing Partner Cyril Shroff stated that over 80% of the firm's total headcount now actively uses AI, with a 2026 target of exceeding 90%. The strategy involves deploying technology practice group by practice group, using specialized tools like Legora, Copilot, Litera, and Casemine to ensure the right fit for each workflow.
At Trilegal, AI tools are already a staple for document review, contract summarization, and multilingual translation, particularly in corporate and disputes practices. Partner Nikhil Narendran noted these applications are reducing friction and improving work precision. Similarly, CMS IndusLaw describes the evolution as moving from a "nifty helper" to "invisible infrastructure," focusing on depth in specific workflows like transaction diligence.
Transforming Billing and Confronting Challenges
The integration of AI is beginning to disrupt the traditional hourly billing model. Law firms report that time spent on research and documentation has fallen by 20-30%, and even 40-60% in some document-heavy matters. Clients are increasingly asking for transparency on tech-assisted work, prompting firms to develop hybrid billing models. These combine fixed fees for automated tasks with hourly billing for complex, judgment-based advice.
Despite the momentum, challenges remain paramount. Client confidentiality and data governance are non-negotiable. Firms like Khaitan & Co., Shardul Amarchand Mangaldas, and Singhania & Co. emphasize that client data is never used to train external AI models, relying instead on secure, ring-fenced environments and strict access controls.
On the talent front, firms are pushing back against the notion that AI will replace lawyers. The hiring trend is shifting towards hybrid roles that combine legal expertise with technology and systems design skills. For instance, Singhania & Co. anticipates that technology-focused roles like legal process engineers could make up nearly 15% of non-fee-earner recruitment.
Judicial Scrutiny and the Road Ahead
As firms deepen their AI use, the Indian judiciary is also stepping into the fray. The Supreme Court has constituted a committee, chaired by Justice P.S. Narasimha, to examine and establish guardrails for AI use in legal processes. This move was partly triggered by a recent case involving fabricated, AI-generated case citations in a court filing.
The committee's findings, expected in 2026, are likely to critically influence how law firms can employ AI in litigation and court-related work. Industry experts like Microsoft India's head of legal affairs, Swapna Parambath, highlight that successful adoption requires a mindset shift, recognizing AI as a tool for augmentation, not replacement, of legal judgment. Meanwhile, regulators are currently allowing space for innovation while institutions build their own internal governance frameworks to address accountability.
With firms like Saraf and Partners establishing dedicated AI committees for oversight, 2026 is poised to be the year where AI transitions from a promising experiment to a foundational, yet carefully governed, component of India's legal landscape.
