LAWYER AI SKILLS CAN NOW COMMAND A 49% WAGE PREMIUM

Posted on June 3, 2024 by Law Leaders

We all know that sweeping impacts are coming to all areas of law including: document review, discovery, research, contract mgmt., litigation support, marketing, compliance, marketing and much more. But we are seeing more immediately is the impact it is having how legal wages.

According to recent forester research, around 80% of jobs in legal could be reshaped by AI while 44% of legal tasks could be automated by AI technology according to Goldman Sachs. This is not entirely new news. What is new news is what we are now seeing in the labor markets.

According to PwC’s 2024 AI Job Barometer report on “How will AI affect jobs, skills, wages, and productivity,” Lawyers with AI skills can now gain a 49% increase in wage premiums over non-AI skilled attorneys. Why is the happening? Because the pace of AI innovation is antithetical to the historic low rate of technology adoption in legal and demand for attorneys with these skills clearly is outpacing supply.

In recent years, only around half of law school graduates end up practicing law for law firms. For those that do, many are faced with a highly competitive legal market and student loan debt to pay off. That is unless, according to today’s labor market, they can bring strong AI skills to the market.

Finally, it is worth noting that the demands for AI skills as a judge are also in high demand. If you want to become a judge, don’t be surprised if an increasing number of questions about your qualifications include what you know about AI and how it can impact your courtroom.