More lawyers are joining AI legal start-ups instead of staying in firms

In short: A growing number of lawyers are leaving traditional law firm careers to work at AI legal-tech start-ups, often with an ownership stake.

What's going on

Working your way up to become a partner has long been the main career goal for many lawyers in private practice. But the rise of AI tools in law is opening a different option. More lawyers are joining legal-tech start-ups, which are small companies building software for legal work.

These start-ups want lawyers because they need people who understand how legal work happens day to day. Lawyers can help design products, advise on business strategy, and act as a bridge between the start-up and its customers, like law firms and in-house legal teams. One executive, April Miller Boise, said a law firm that was advanced in using AI recently lost several lawyers to an AI business.

The Financial Times points to fast-growing legal AI companies like Harvey and Legora. Both have hired lawyers, and they have attracted attention from investors, with reported valuations of $11bn for Harvey and $5.5bn for Legora in March 2026.

Individual moves show what these jobs look like. Farrah Pepper joined Harvey after more than two decades in private practice and in-house roles, and now works with clients as a “legal innovation partner.” At Legora, Alex Fortescue-Webb leads a team of about 70 “legal engineers” (lawyers who help shape and set up legal software), and says many are former lawyers.

What to watch

This trend could push law firms to compete harder for AI skills, including hiring from tech companies. It may also change what it means to have a successful legal career, since a start-up can offer quicker responsibility and the chance to profit if the company is sold, like owning a small slice of the business.

Source: Financial Times