AI use rises among Victorian lawyers, but few pass savings to clients
AI use among Victorian lawyers rose to 55%, up from 37% the previous year, but only 26% said it had led to lower client fees. The findings suggest that wider adoption has not yet delivered the expected efficiency gains, while clients’ use of chatbots can create extra work for lawyers.
A census of 2,221 lawyers found consumer chatbots were far more commonly used than tools designed specifically for legal services. Nearly half of lawyers said clients brought inaccurate or misleading AI research, and 41% had to correct AI-generated documents; 46% said clients’ AI use increased the time and effort required. Fee reductions were reported more often for business clients than individuals, at 34% and 23% respectively.
In short
- AI use by Victorian lawyers rose to 55%.
- Only 26% said it reduced client fees.
- Clients’ AI research often brought extra correction work.
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The strongest fair case each way — we don't pick a winner.
The case for
Law firms may reasonably argue that adopting AI requires upfront investment, careful checking and staff training, so lower costs will not appear immediately. Client-facing savings may also be limited when lawyers must spend extra time correcting inaccurate chatbot research or documents, while efficiency gains may be passed on more readily to business clients with larger, more standardised workloads.
The case against
Clients may argue that if AI is already helping lawyers work more efficiently, they should see some benefit in lower fees rather than paying the same while firms retain the savings. The low rate of reported fee reductions, alongside widespread adoption, raises a fair question about whether firms are measuring and sharing productivity gains transparently, especially for individual clients.
Explained simply
Victoria is a state in south-eastern Australia, and its lawyers advise people and organisations on legal matters. They may charge by the hour or agree a fee for particular work, so time spent on a case can affect what clients pay.
AI tools can generate text, answer questions and help with research. General chatbots are available to the public, while some tools are made for legal work; information they produce can be wrong or misleading and may need checking by a lawyer.
The issue matters because clients and lawyers are both using these tools, but their effects on the cost and effort of legal work are not automatic. Businesses and individuals may also experience different fees and levels of support.
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Originally published by The Guardian as “More than half of Victorian lawyers use AI – but only a quarter have cut client fees as a result”.