Wall Street Banks Press Big Law to Cut Fees as AI Boosts Efficiency

Corporate legal work has traditionally been billed by the hour, but generative AI can accelerate routine tasks such as document review, legal research and contract analysis. Goldman Sachs, Morgan Stanley and Citigroup are among the Wall Street banks arguing that law firms should pass those productivity gains to clients, putting pressure on Big Law’s pricing model as technology reduces the time and labor required for some assignments.

In the latest fee negotiations, Goldman Sachs, Morgan Stanley and Citigroup are pressing outside law firms to lower their bills because AI has made routine legal work faster. The report did not disclose a specific discount, dollar amount or common effective date, indicating that the demands are being handled through individual negotiations between banks and their legal providers rather than through an industry-wide pricing agreement.