Law Firms Step Up Race For AI Talent As Tech Reshapes Services

Law firms are stepping up their competition for engineers, data scientists and other technology specialists as artificial intelligence becomes increasingly embedded in legal work, putting them in direct competition with technology companies for highly skilled talent.

 

Cooley is among the firms taking an aggressive approach. The Palo Alto-based law firm has created Cooley AI, a separate subsidiary designed to develop artificial intelligence tools for internal use and explore new ways of delivering legal services.

 

The initiative is being led by David Wang, Cooley's chief innovation officer, who said the firm was seeking more than a dozen technology professionals. The subsidiary is intended to operate with some of the characteristics of a technology start-up while remaining closely connected to the law firm's legal practice.

 

That structure reflects a wider change in the legal industry as firms seek employees who can work at the intersection of technology and law. Rather than relying solely on external software providers, some firms are building teams capable of developing, testing and implementing AI systems within their own businesses.

 

Growing Demand For Technical Expertise

 

Cooley is advertising 14 positions within its AI operation, including senior engineering roles. Several hires have already joined, including professionals who previously worked at other law firms and technology companies.

 

The firm's advertised salary for a senior AI data engineer ranges from $220,000 to $250,000, putting compensation at a level comparable with starting salaries for lawyers at major US firms.

 

Other major firms are also recruiting for AI-related positions. Covington & Burling, Cravath, Swaine & Moore, Latham & Watkins, Kirkland & Ellis, McGuireWoods, Mayer Brown and White & Case are among those advertising technology-focused roles.

 

One advertised position offers compensation of as much as $438,000 for a director of applied AI, underlining the premium some firms are prepared to place on technical expertise.

 

For firms, however, the challenge is not simply matching salaries offered by technology companies. They also need to persuade engineers and other specialists that legal services can provide technically demanding work and opportunities to develop products with direct commercial applications.

 

Wang said Cooley was seeking people interested in difficult problems who could apply their expertise to legal challenges.

 

Billions Going Into AI

 

The recruitment drive is taking place alongside growing investment in AI across the legal sector. Kirkland & Ellis said in May that it planned to allocate $500 million of its revenue over three to four years towards developing a customised AI platform. Morgan & Morgan, a major US personal injury firm, has said it plans to invest at least $1 billion over the next decade.

 

Cooley has not disclosed the size of its investment in Cooley AI, but the firm has already begun developing products with AI technology providers.

 

The firm's September announcement of Cooley AI came alongside the launch of an AI-enabled product developed with OpenAI to assist companies preparing to go public. The tool is intended for use by Cooley lawyers in client work.

 

OpenAI has also been developing technology aimed specifically at the legal sector, including tools designed to assist with legal research, drafting and the creation of applications for lawyers. Other major firms, including Ropes & Gray and Sullivan & Cromwell, are working with the technology company on AI-related initiatives.

 

Lawyers Moving Into AI

 

The competition is not limited to firms hiring technology professionals. Some law firms are also losing lawyers to AI companies as the technology sector expands its recruitment of people with legal expertise.

 

According to legal analytics company Firm Prospects, 46 lawyers from the 200 highest-grossing US law firms during the first half of 2026 moved to companies including Harvey, Anthropic and OpenAI.

 

The movement illustrates how AI is beginning to alter the traditional relationship between technology companies and law firms. Legal expertise is increasingly valuable to technology businesses developing products for legal research, drafting, compliance and other professional services.

 

At the same time, law firms are seeking technical specialists who can help them determine how AI should be incorporated into legal practice while addressing issues such as reliability, data security and client confidentiality.

 

The result is a two-way movement of talent, with lawyers entering AI companies and engineers and data specialists moving into law firms.

 

For the legal industry, the competition is therefore becoming less about simply purchasing AI software and more about developing the people and infrastructure needed to use the technology effectively.

 

As firms increase their investment in proprietary systems and specialist teams, technical expertise is becoming a more prominent part of the competition for talent across the legal services market.

 

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