55% of Victorian Lawyers Use AI—But Just Over a Quarter Are Cutting Fees

TVS News AI, editorially supervised, presents 55% of Victorian Lawyers Use AI—But Just Over a Quarter Are Cutting Fees.

55 percent of lawyers in Victoria now work with artificial intelligence, according to a new study. A year ago, the figure was 37 percent, according to the report. For lawyers, clients, and everyone who has been counting on significant price advantages from AI, this produces a sober assessment: Use is growing rapidly, but its economic impact is lagging behind.

The gap between technical use and calculated fees is particularly striking. AI is part of everyday work in many law firms, but only a significantly smaller group cites it as a reason for lower prices. At the same time, lawyers report that clients sometimes turn to chatbots before seeking legal advice.

More Than Every Second Lawyer Is Already Using AI

The proportion of Victorian lawyers using AI in their work has risen to 55 percent, according to the study. A year earlier, it was 37 percent. That represents an increase of 18 percentage points in the space of a year.

AI has therefore become part of everyday professional life for the majority of lawyers surveyed. The development involves more than isolated pilot projects: The majority now report actual use in their daily work. At the same time, the report warns against overly high expectations. The efficiency gains have not been as great as many people initially assumed.

Working More Efficiently—but Only Rarely Becoming Cheaper

The key practical finding lies in the difference between work and price. Only just over a quarter of the lawyers surveyed say they have reduced fees for clients because of the efficiency gains achieved through AI.

For clients, this means there is a clear limit: The mere use of AI does not automatically lead to cheaper legal advice. A faster internal process does not necessarily mean that lawyers pass those savings on to their invoices. Therefore, those hoping for a lower fee cannot rely on a firm's use of AI alone.

The study therefore does not paint a picture of a fully automated law firm. It describes a transition: AI has arrived at more than half of all lawyers, but adjustments in pricing remain well behind the spread of the technology.

Chatbots Create Additional Work Rather Than Just Relief

A second finding explains why the reported efficiency gains remain limited. Some clients already seek legal advice from chatbots. Lawyers are then left with statements and conclusions based on faulty AI answers that must be corrected.

This creates additional demand for review. Clients may be using AI earlier and more frequently, but responsibility for the correct interpretation remains with the lawyers. This can increase the workload, even if time is saved in the actual advisory process.

For you as a client, this point is particularly relevant: While a chatbot can make a first impression, according to the lawyers' accounts, it cannot replace a reliable legal assessment. According to the report, correcting false or incomplete information is expressly among the consequences of this use.

The Study Shows Both a Technology Trend and Price Signals

The figures provide, above all, a clear chronological context. Within a year, the proportion using AI rose from 37 to 55 percent. At the same time, lawyers reported efficiency gains that fell short of expectations.

It remains particularly striking that only just over a quarter decided to charge lower fees because of these efficiency gains. There is thus a clear gap between technical modernization and economic implementation. AI has arrived in law firms; however, the adaptation of pricing structures has not yet fully kept pace.

The report also does not name any specific AI tools or provide detailed information about which tasks became faster through their use or how large the fee reductions were. The robust conclusions therefore remain at the macro level: More use, smaller efficiency gains than expected, and additional correction work caused by clients seeking advice.

The Equation Remains Differentiated for Lawyers and Clients

The practical interpretation of the study is neither pessimistic nor exaggerated. AI is already being used by more than half of Victorian lawyers. Only just over a quarter have derived lower fees from it, while clients are triggering additional correction work with chatbots.

For clients, this means: Ask about specific fees and services instead of assuming a blanket price advantage from AI. For lawyers, it shows that technical efficiency and economic benefit must be considered separately. The Guardian provides the current study findings on both points—in a topic whose practical consequences are already becoming visible in everyday life.