Lawyers are projected to record a greater share of their workday as billable in 2026, according to Clio’s latest Legal Trends Report, as AI adoption spreads across legal practice.
Released at ClioCon in Boston, the report projects utilization will reach 42% this year, up from 39% in 2025. Clio describes the change as the largest annual increase in the report’s history.
At approximately 3.4 billable hours per day, the projected figure represents 53% more recorded billable work than in 2016.
The report also finds differences in financial performance between firms using Clio’s AI tools and comparable firms that are not. Firms using both Clio Work and Clio Manage record 10% higher revenue per responsible lawyer, 6.5% more billable hours, and collection rates 2.5 percentage points higher than comparable firms not using Clio’s AI tools.
Those findings show an association between adoption and performance; they do not establish that AI alone caused the gains.
“For decades, law firm growth has been closely tied to the time lawyers spend producing work,” said Jack Newton, Clio’s CEO and founder. “AI is challenging that model, creating opportunities for firms to expand their capacity, rethink how they deliver services, and build businesses around the value of their expertise.”
Among surveyed legal professionals, 85% report some level of AI adoption at their firms, up from 79% in 2025. More than half of surveyed AI users say losing access would disrupt their work, while 82% of those using AI for drafting and automation report greater job satisfaction.
The research finds limited evidence of widespread AI-related job cuts among surveyed firms. Most respondents report no AI-attributable changes in lawyer or non-lawyer headcount. Among firms reporting changes, additions were more common than reductions, a pattern that also held for junior associates and paralegals.
Consumers, meanwhile, are increasingly using AI before seeking professional advice. Nearly one in four U.S. adults has used it to answer a legal question, and 46% say they would consult AI before contacting a lawyer.
That openness has limits. Eighty-two per cent want to know when their lawyer uses AI, and 70% say disclosure increases their trust in a lawyer. Just 26% are comfortable with AI making decisions.
Now in its eleventh year, the report combines surveys of U.S. legal professionals and consumers, aggregated and anonymized Clio operating data, and qualitative interviews. Its survey findings offer a view of the U.S. market rather than a measure of Canadian adoption.
For firms weighing their next AI investment, the findings raise questions that extend beyond productivity: how to translate new capacity into revenue, support staff, and explain AI’s role to clients.