How AI is reshaping Big Law, with ex-Ashurst digital chief
Tara Waters on the impact of AI, and the firms and tools leading the way.
Contents
Law firms have spent years talking about technology, but according to Tara Waters, former chief digital officer and partner at Ashurst, the last two years have been nothing short of a revolution.
The catalyst of course has been generative AI.
Waters, who now runs her own legal tech consultancy, has been at the forefront of AI adoption in corporate law.
In a wide-ranging interview for The Non-Billable Podcast, she shares insights on how firms are embracing AI, which law firms are leading the charge and whether the billable hour is finally under threat.
Listen to the full-length interview on the podcast. Episode page with links here.
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A career at the intersection of law and technology
Waters' career path is a little unconventional.
Before entering the legal world, she was a web developer during the dot-com boom in New York. It was then that she first saw technology racing ahead of the law, from the rise of Napster to the emergence of peer-to-peer file sharing.
That curiosity led her to law school in the US, followed by a move to London, where she joined A&O’s capital markets team before moving to Simmons and then eventually Ashurst where she would become a partner.
Her combined experience in law and technology made her a natural fit for Ashurst’s innovation and digital transformation strategy, where she spearheaded projects such as the firm-wide rollout of AI tool Harvey.
The end of legal tech’s 'back office' phase
For years, legal technology was largely focused on operational efficiency - streamlining processes, automating document review and improving back-office functions. While these innovations improved workflows, they didn’t fundamentally change how law firms delivered services to clients.
That changed with the rise of generative AI, particularly after the public launch of ChatGPT in November 2022.
Fee-earners were hooked, Waters explains: "Basically every single lawyer saw that and suddenly was like, that looks easy to use. I bet I could use it to do X or Y or Z.”
“I had very senior partners telling me they are already paying for the premium account because they wanted to make sure they could access it because they were on the free account. Sometimes you’d tell them to wait for half an hour, and then you'll be able to access it again.”
The tool was a game-changer - and put pressure on Waters to start getting the technology in the hands of lawyers.
“Suddenly you had this whole rush of we have to be using this new generative AI technology. How do we use it? I'm being pulled in the direction of the lawyers.”
“We finally had the mindset shift that we've all been trying to make happen within the legal community finally happen - where the lawyers are saying, we want to work differently. If you give us the right tools, we will work differently and we will adopt this.”
We finally had the mindset shift that we've all been trying to make happen - lawyers are saying, we want to work differently.
AI in law firms: beyond chatbots
Generative AI is no longer just about drafting emails or summarising contracts. The most impactful tools integrate directly into lawyers’ workflows, enabling them to work more efficiently and focus on higher-value tasks.
Many AI tools are now embedded within Microsoft Word, allowing lawyers to review contracts, extract key clauses, and generate reports without leaving their documents. Others offer workflow-driven platforms that can process large volumes of contracts in seconds, extracting relevant information and flagging risks.
Then there are full-scale AI platforms like Harvey, which is now one of the most well-known names in legal tech.
Ashurst conducted a trial of Harvey with nearly 300 lawyers globally, with overwhelmingly positive feedback. Waters explains that the adoption process focused on gathering qualitative and quantitative data to assess usability and accuracy.
The pilot phase was critical, says Waters:
“We ran those trials in such a structured way that our team was able to take all of that quantitative and qualitative data and it was very clear that the people that were involved in the Harvey trial were almost universally saying it was fantastic.”
What should the ROI be for AI?
A big issue on the minds of partners and in-house teams is figuring out what the return on investment actually is for the millions invested in AI tools.
The traditional way is by looking at the time savings AI tools offer lawyers - who can then spend their time on higher value, more complex work.
“That misses the big point”, according to Waters.
Firms should view AI as a “growth engine” instead, something that serves as a competitive differentiator in the market which - ideally - translates into more work from clients.
And don’t overlook its importance on talent. It’s also about “attracting and retaining the best talent by maintaining your position as a market leader in technological innovation”, she explains.
Firms that lag behind may struggle to attract both clients and top legal talent, particularly as junior lawyers increasingly expect to work with modern, AI-enabled tools.
“I think there's quickly going to become a point at which if you don't have something like this within your firm, it's going to start to become a differentiator also for your people.”
The billable hour debate: is AI a threat or an opportunity?
One of the most important discussions around AI is whether it challenges the billable hour model. If AI enables lawyers to work faster, does that reduce the number of hours firms can charge for?
Waters sees it differently - rather than replacing lawyers, AI is shifting how their time is allocated.
While AI certainly makes certain tasks quicker, that doesn’t mean firms will lose revenue through fewer billed hours. Instead, it allows lawyers to spend more time on high-value work that clients are willing to pay for.
There's quickly going to become a point at which if you don't have something like this within your firm, it's going to start to become a differentiator also for your people.
Which firms are leading the way?
While many firms are making investments in technology, Waters highlights Addleshaw Goddard as a standout example.
“I've been super impressed with Addleshaw Goddard and what Kerry Westland and her team have been doing. I think they've got great expertise in that team. And I think as a firm, they've shown that they're willing to invest and move really quickly.”
Other firms are undoubtedly making significant AI investments behind closed doors, but transparency around AI adoption remains mixed across the industry.
The AI tools law firms are betting on
While the legal AI market is becoming increasingly crowded, some tools are emerging as frontrunners.
Waters sees particular value in AI tools that don’t try to interfere with lawyers’ decades-long addiction to Microsoft Word, putting extra value on solutions that integrate seamlessly into lawyers’ existing workflows.
She cites Spellbook, which features a Word add-in for contract review and drafting, as one of the more compelling products available today. She likes it so much, in fact, she has her own personal licence.
She has also followed the development of Definely, the AI contract drafting and negotiation tool created by two former Freshfields lawyers, which has become widely used across major firms:
“I think it's great. I think it's amazing. What they offer is an amalgamation of different capabilities, but all built within Word and all something that, in my view, was something that they did better than the incumbent providers.”
Career advice for lawyers in the age of AI
Waters has built a career at the intersection of law and technology. When asked for career advice, she emphasises the importance of adaptability and confidence.
“Some of the best career advice would be to back yourself. I think there's a lot of talk in the industry about lawyers having imposter syndrome and not always feeling ready and I think it’s important to feel uncomfortable sometimes, getting into new spaces, learning new skills, trying to adapt to a more technology enabled world.”
Asked what separates good lawyers from great ones, Waters says it’s about having clarity of thought under pressure.
“It’s just how quickly in the moment they can react and respond”, she says.
“They just have this amazing ability to dig deep into the well of their memory and just come back with really specific information or really great questions.”
As for what she would like to see the industry do better: more investment in learning and development “for all roles and at all levels”.
“I don't think that we always provide the right level of learning and development at each of those stages because being a partner requires all these skills that as even a senior associate you're not required to tap into and definitely not as a more junior associate.
I would have loved to have had more development in some of those areas and learned to hone those skills quite quickly. It can be a little bit sink or swim.”
Back yourself - I think it’s important to feel uncomfortable sometimes, getting into new spaces, learning new skills, and trying to adapt to a more technology enabled world.
Where to follow Tara
For those interested in legal tech and AI, Waters is active on LinkedIn, where she regularly shares insights on digital transformation in the legal sector.
She also runs Innovation Esquire, a platform where she publishes analysis on emerging trends in legal technology.
Law Firm | Trainee First Year | Trainee Second Year | Newly Qualified (NQ) |
|---|---|---|---|
| Addleshaw Goddard | £52,000 | £56,000 | £100,000 |
| Akin Gump | £60,000 | £65,000 | £174,418 |
| A&O Shearman | £56,000 | £61,000 | £150,000 |
| Ashurst | £52,000 | £57,000 | £125,000 |
| Baker McKenzie | £56,000 | £61,000 | £140,000 |
| Bird & Bird | £47,000 | £52,000 | £98,000 |
| Bristows | £46,000 | £50,000 | £88,000 |
| Bryan Cave Leighton Paisner | £50,000 | £55,000 | £105,000 |
| Burges Salmon | £47,000 | £49,000 | £72,000 |
| Charles Russell Speechlys | £50,000 | £53,000 | £88,000 |
| Cleary Gottlieb Steen & Hamilton | £57,500 | £62,500 | £164,500 |
| Clifford Chance | £56,000 | £61,000 | £150,000 |
| Clyde & Co | £47,000 | £49,500 | £85,000 |
| CMS | £50,000 | £55,000 | £110,000 |
| Cooley | £55,000 | £60,000 | £157,000 |
| Davis Polk | £65,000 | £70,000 | £170,000 |
| Debevoise | £55,000 | £60,000 | £173,000 |
| Dechert | £55,000 | £61,000 | £165,000 |
| Dentons | £50,000 | £54,000 | £100,000 |
| DLA Piper | £50,000 | £55,000 | £110,000 |
| Eversheds Sutherland | £46,000 | £50,000 | £100,000 |
| Farrer & Co | £47,000 | £49,000 | £88,000 |
| Fieldfisher | £48,500 | £52,000 | £95,000 |
| Freshfields | £56,000 | £61,000 | £150,000 |
| Fried Frank | £55,000 | £60,000 | £175,000 |
| Gibson Dunn | £60,000 | £65,000 | £180,000 |
| Goodwin Procter | £55,000 | £60,000 | £175,000 |
| Gowling WLG | £48,500 | £53,500 | £98,000 |
| Herbert Smith Freehills | £56,000 | £61,000 | £135,000 |
| HFW | £50,000 | £54,000 | £100,000 |
| Hill Dickinson | £43,000 | £45,000 | £80,000 |
| Hogan Lovells | £56,000 | £61,000 | £135,000 |
| Irwin Mitchell | £43,000 | £45,000 | £76,000 |
| Jones Day | £56,000 | £65,000 | £160,000 |
| K&L Gates | £50,000 | £55,000 | £115,000 |
| Kennedys | £43,000 | £46,000 | £85,000 |
| King & Spalding | £55,000 | £60,000 | £165,000 |
| Kirkland & Ellis | £60,000 | £65,000 | £174,418 |
| Latham & Watkins | £60,000 | £65,000 | £174,418 |
| Linklaters | £56,000 | £61,000 | £150,000 |
| Macfarlanes | £56,000 | £61,000 | £140,000 |
| Mayer Brown | £55,000 | £60,000 | £135,000 |
| McDermott Will & Emery | £65,000 | £70,000 | £174,418 |
| Milbank | £65,000 | £70,000 | £174,418 |
| Mills & Reeve | £45,000 | £47,000 | £82,000 |
| Mischon de Reya | £47,500 | £52,500 | £95,000 |
| Norton Rose Fulbright | £50,000 | £55,000 | £135,000 |
| Orrick | £55,000 | £60,000 | £160,000 |
| Osborne Clarke | £54,500 | £56,000 | £94,000 |
| Paul Hastings | £60,000 | £68,000 | £173,000 |
| Paul Weiss | £55,000 | £60,000 | £180,000 |
| Penningtons Manches Cooper | £48,000 | £50,000 | £83,000 |
| Pinsent Masons | £49,500 | £54,000 | £97,000 |
| Quinn Emanuel | n/a | n/a | £180,000 |
| Reed Smith | £50,000 | £55,000 | £125,000 |
| Ropes & Gray | £60,000 | £65,000 | £165,000 |
| RPC | £46,000 | £50,000 | £90,000 |
| Shoosmiths | £43,000 | £45,000 | £97,000 |
| Sidley Austin | £60,000 | £65,000 | £175,000 |
| Simmons & Simmons | £52,000 | £57,000 | £120,000 |
| Skadden | £58,000 | £63,000 | £173,000 |
| Slaughter and May | £56,000 | £61,000 | £150,000 |
| Squire Patton Boggs | £47,000 | £50,000 | £110,000 |
| Stephenson Harwood | £50,000 | £55,000 | £100,000 |
| Sullivan & Cromwell | £65,000 | £70,000 | £174,418 |
| Taylor Wessing | £50,000 | £55,000 | £115,000 |
| TLT | £44,000 | £47,500 | £85,000 |
| Travers Smith | £54,000 | £59,000 | £120,000 |
| Trowers & Hamlins | £45,000 | £49,000 | £80,000 |
| Vinson & Elkins | £60,000 | £65,000 | £173,077 |
| Watson Farley & Williams | £50,000 | £55,000 | £102,000 |
| Weightmans | £34,000 | £36,000 | £70,000 |
| Weil Gotshal & Manges | £60,000 | £65,000 | £170,000 |
| White & Case | £62,000 | £67,000 | £175,000 |
| Willkie Farr & Gallagher | £60,000 | £65,000 | £170,000 |
| Withers | £47,000 | £52,000 | £95,000 |
| Womble Bond Dickinson | £43,000 | £45,000 | £80,000 |
Rank | Law Firm | Revenue | Profit per Equity Partner (PEP) |
|---|---|---|---|
| 1 | DLA Piper* | £3,010,000,000 | £2,400,000 |
| 2 | Clifford Chance | £2,300,000,000 | £2,040,000 |
| 3 | A&O Shearman | £2,200,000,000 | £2,200,000 |
| 4 | Hogan Lovells | £2,150,000,000 | £2,200,000 |
| 5 | Freshfields | £2,120,000,000 | Not disclosed |
| 6 | Linklaters | £2,100,000,000 | £1,900,000 |
| 7 | Norton Rose Fulbright* | £1,800,000,000 | £1,100,000 |
| 8 | CMS** | £1,620,000,000 | Not disclosed |
| 9 | Herbert Smith Freehills | £1,300,000,000 | £1,300,000 |
| 10 | Ashurst | £961,000,000 | £1,300,000 |
| 11 | Clyde & Co | £844,000,000 | £739,000 |
| 12 | Eversheds Sutherland | £749,000,000 | £1,300,000 |
| 13 | BCLP* | £661,000,000 | £748,000 |
| 14 | Pinsent Masons | £649,000,000 | £793,000 |
| 15 | Slaughter and May*** | £625,000,000 | Not disclosed |
| 16 | Simmons & Simmons | £574,000,000 | £1,076,000 |
| 17 | Bird & Bird** | £545,000,000 | £696,000 |
| 18 | Addleshaw Goddard | £495,000,000 | Not disclosed |
| 19 | Taylor Wessing | £480,000,000 | £915,000*** |
| 20 | Osborne Clarke** | £456,000,000 | £771,000 |
| 21 | Womble Bond Dickinson | £448,000,000 | £556,000 |
| 22 | DWF | £435,000,000 | Not disclosed |
| 23 | Fieldfisher | £407,000,000 | £966,000 |
| 24 | Kennedys | £384,000,000 | Not disclosed |
| 25 | DAC Beachcroft | £325,000,000 | £700,000 |
What do City lawyers actually do each day?
For a closer look at the day-to-day of some of the most common types of lawyers working in corporate law firms, explore our lawyer job profiles:
This is a condensed version of our full length interview with Tara Waters on The Non-Billable Podcast. View the episode page here.
| Firm | London office since | Known for in London |
|---|---|---|
| Baker McKenzie | 1961 | Finance, capital markets, TMT |
| Davis Polk | 1972 | Leveraged finance, corporate/M&A |
| Gibson Dunn | 1979 | Private equity, arbitration, energy, resources and infrastructure |
| Goodwin | 2008 | Private equity, funds, life sciences |
| Kirkland & Ellis | 1994 | Private equity, funds, restructuring |
| Latham & Watkins | 1990 | Finance, private equity, capital markets |
| Milbank | 1979 | Finance, capital markets, energy, resources and infrastructure |
| Paul Hastings | 1997 | Leveraged finance, structured finance, infrastructure |
| Paul Weiss | 2001 | Private equity, leveraged finance |
| Quinn Emanuel | 2008 | Litigation |
| Sidley Austin | 1974 | Leveraged finance, capital markets, corporate/M&A |
| Simpson Thacher | 1978 | Leveraged finance, private equity, funds |
| Skadden | 1988 | Finance, corporate/M&A, arbitration |
| Weil | 1996 | Restructuring, private equity, leverage finance |
| White & Case | 1971 | Capital markets, arbitration, energy, resources and infrastructure |
| Law firm | Type | First-year salary |
|---|---|---|
| White & Case | US firm | £32,000 |
| Stephenson Harwood | International | £30,000 |
| A&O Shearman | Magic Circle | £28,000 |
| Charles Russell Speechlys | International | £28,000 |
| Freshfields | Magic Circle | £28,000 |
| Herbert Smith Freehills | Silver Circle | £28,000 |
| Hogan Lovells | International | £28,000 |
| Linklaters | Magic Circle | £28,000 |
| Mishcon de Reya | International | £28,000 |
| Norton Rose Fulbright | International | £28,000 |
Law Firm | Trainee First Year | Trainee Second Year | Newly Qualified (NQ) |
|---|---|---|---|
| A&O Shearman | £56,000 | £61,000 | £150,000 |
| Clifford Chance | £56,000 | £61,000 | £150,000 |
| Freshfields Bruckhaus Deringer | £56,000 | £61,000 | £150,000 |
| Linklaters | £56,000 | £61,000 | £150,000 |
| Slaughter and May | £56,000 | £61,000 | £150,000 |
Law Firm | Trainee First Year | Trainee Second Year | Newly Qualified (NQ) |
|---|---|---|---|
| A&O Shearman | £56,000 | £61,000 | £150,000 |
| Clifford Chance | £56,000 | £61,000 | £150,000 |
| Freshfields Bruckhaus Deringer | £56,000 | £61,000 | £150,000 |
| Linklaters | £56,000 | £61,000 | £150,000 |
| Slaughter and May | £56,000 | £61,000 | £150,000 |
Law Firm | Trainee First Year | Trainee Second Year | Newly Qualified (NQ) |
|---|---|---|---|
| Ashurst | £52,000 | £57,000 | £125,000 |
| Bryan Cave Leighton Paisner | £50,000 | £55,000 | £105,000 |
| Herbert Smith Freehills | £56,000 | £61,000 | £135,000 |
| Macfarlanes | £56,000 | £61,000 | £140,000 |
| Travers Smith | £54,000 | £59,000 | £120,000 |
| Firm | Merger year | Known for in London |
|---|---|---|
| BCLP | 2018 | Real estate, corporate/M&A, litigation |
| DLA Piper | 2005 | Corporate/M&A, real estate, energy, resources and infrastructure |
| Eversheds Sutherland | 2017 | Corporate/M&A, finance |
| Hogan Lovells | 2011 | Litigation, regulation, finance |
| Mayer Brown | 2002 | Finance, capital markets, real estate |
| Norton Rose Fulbright | 2013 | Energy, resources and infrastructure, insurance, finance |
| Reed Smith | 2007 | Shipping, finance, TMT |
| Squire Patton Boggs | 2011 | Corporate/M&A, pensions, TMT |
Law Firm | Trainee First Year | Trainee Second Year | Newly Qualified (NQ) |
|---|---|---|---|
| Ashurst | £52,000 | £57,000 | £125,000 |
| Bryan Cave Leighton Paisner | £50,000 | £55,000 | £105,000 |
| Herbert Smith Freehills | £56,000 | £61,000 | £135,000 |
| Macfarlanes | £56,000 | £61,000 | £140,000 |
| Travers Smith | £54,000 | £59,000 | £120,000 |
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