Why law firms are Racing to Hire Data Scientists and Software Engineers

As AI reshapes legal services, top law firms are abandoning the "buy vs. build" debate and recruiting elite technology talent to create competitive advantages from within

Major law firms have launched an unprecedented hiring spree for data scientists and software engineers, with Latham & Watkins, Cleary Gottlieb, DLA Piper, and Reed Smith creating new technology roles in recent months. This shift from buying legal tech to building it internally represents a fundamental reimagining of how elite firms compete in an AI-driven marketplace where technological superiority increasingly determines market position.

The Acquisition That Changed Everything

When Cleary Gottlieb acquired Springbok AI earlier this year, it wasn't just another tech purchase—it was a declaration of war on the traditional vendor model. The transaction brought ten data scientists into Cleary's fold, marking a dramatic departure from the decades-old practice of outsourcing technology development to third-party vendors.

AI in law is big business. That transaction brought ten data scientists into Cleary's fold and marked a departure from outsourcing everything according to a Reuters report and a report in the Financial Times. The message was clear: law firms are no longer content to be passive consumers of legal technology—they want to be its creators.

The War for AI Talent

Global firms have spent the first half of the year stocking up on data scientists and machine learning engineers. Many law firm technology leaders say the vendor market has fallen short of their firms' needs. The numbers tell a compelling story of systematic investment in technical talent across BigLaw.

The Hiring Surge by the Numbers:

Latham & Watkins, Cleary Gottlieb, DLA Piper, and Reed Smith have all hired technology specialists to newly created roles in the last month alone
Morgan, Lewis & Bockius is actively recruiting directors of AI and innovation
Across London large firms like Freshfields, Linklaters and Slaughter and May are already recruiting for data science roles
Over 49,000 law-related data science jobs are currently available in the United States

This isn't just about filling IT support roles. These firms are recruiting PhD-level data scientists, machine learning engineers, and software architects—the same talent pool that tech giants like Google, Meta, and OpenAI compete for aggressively.

Why Now? The Competitive Imperative

The timing of this talent acquisition reflects several converging pressures that make in-house tech development not just attractive, but essential for survival.

Client Pressure for Innovation

Law firms often debate growth objectives when drafting strategic plans, and for a long time the advantages of scale were not apparent in the legal industry. Often law firm strategy would avoid a path of "growth for growth's sake." However, recent aggressive hiring in the lateral partner markets from firms with very deep financial pockets have demonstrated how significant an advantage scale is.

Clients are no longer willing to pay premium rates for work that can be automated. They're demanding transparency about AI usage and expecting efficiency gains to translate into cost savings. Major law firms are choosing to invest heavily in legal technology to improve efficiency, streamline processes, and meet growing client expectations.

Vendor Market Limitations

Many law firm technology leaders say the vendor market has fallen short of their firms' needs. Firms' top brass recognizes the inevitability of widespread AI adoption and disruption and seeks expertise from the tech community. Off-the-shelf solutions simply can't address the specific workflows, security requirements, and competitive needs of elite legal practices.

The Scale Advantage

Similarly, the transition to AI capable law firms also advantages those firms with the financial strength to make these investments without risking partner well-being (profits). As one lawyer stated, "We are making huge investments…it's not just the money but the time it takes to evaluate new AI products and the jettison the ones that are not useful."

Only the largest, most profitable firms can afford to build internal technology teams. This creates a powerful competitive moat that threatens to leave smaller firms permanently disadvantaged.

What These Teams Actually Do

The data scientists and engineers being hired aren't working on generic productivity tools. They're developing highly specialized applications that leverage each firm's unique data, workflows, and competitive positioning.

Custom AI Model Development

These teams build proprietary large language models trained on firm-specific data. While ChatGPT might help with general legal research, a custom model trained on decades of a firm's successful briefs, contracts, and case strategies provides exponentially more value.

Predictive Analytics for Legal Strategy

Forward-thinking litigation teams are leveraging AI-powered predictive analytics to transform strategy by analyzing vast datasets of past cases, judges, and opposing counsel behaviors. These systems don't make strategy decisions. Instead, they provide empirical evidence that complements lawyer judgment.

Workflow Automation and Integration

The report also reveals that disconnected tools significantly impact non-billable time. Entering data in multiple systems (40%) was most frequently reported as the non-billable task that law firm professionals spend the most time on. Internal teams solve this by building integrated platforms that eliminate data entry redundancy and create seamless workflows.

Competitive Intelligence Systems

Data scientists are building systems that analyze market trends, competitor strategies, and client behavior patterns to identify new business opportunities and optimize pricing strategies.

The Skills Premium: What Firms Are Paying

The competition for top tech talent is driving compensation to unprecedented levels. According to research for the Demand for Skilled Talent report, the most evident skills gap on technology teams is within AI, machine learning and data science. AI expertise has become increasingly valuable as organizations seek professionals who can develop and implement solutions.

Salary Ranges for Legal Tech Roles:

Data Scientists: $120,000 – $195,000+ base salary
AI/Machine Learning Engineers: $150,000 – $250,000+
Senior Technology Architects: $200,000 – $350,000+

But money isn't the only draw. Technology hiring trends in 2025 indicate that candidates place a high value on exposure to AI and machine learning projects, as these skills significantly enhance their career trajectories. Law firms offer these professionals the opportunity to work on cutting-edge applications with real-world impact.

The Build vs. Buy Revolution

The traditional legal tech market operated on a simple premise: vendors build generic solutions, and law firms adapt their processes to fit the software. This model is collapsing as firms realize that competitive advantage comes from technology that reflects their unique strengths.

Douwe Groenevelt, formerly head of legal at ASML and now running AI consultancy Viridea, says embedding AI creates competitive distinction. When every firm uses the same commercial software, no one has an advantage. When firms build proprietary tools, they can create sustainable competitive moats.

Investment Beyond Hiring

Firms aren't just hiring individual contributors—they're building entire technology departments:

Wilson Sonsini backed SingleFile Technologies Inc., a compliance filing software provider. Orrick has invested in DraftWise, Priori Legal, and AltaClaro, looking for tools that align with the firm's data security and AI principles
A&O Shearman, Cooley, and Orrick are leading the charge in legal tech investment and development
Many firms are creating Chief Technology Officer and Chief Innovation Officer positions

Skills-Based Hiring Revolution

This tech talent acquisition is part of a broader shift toward skills-based hiring across BigLaw. Firms are increasingly prioritizing skills-based hiring, valuing practical abilities like legal tech proficiency, project management, and client communication over traditional markers of success.

According to a 2024 report by the National Association for Law Placement (NALP), 55% of Am Law 200 firms now use skills-based assessments during the recruiting process, up from just 30% in 2020. This trend extends beyond lawyers to encompass the entire professional services ecosystem.

The Talent Bridge Challenge

One of the biggest challenges firms face is bridging the gap between legal and technical expertise. To bridge the language barrier between lawyers and technologists, global firms have spent the first half of the year stocking up on data scientists and machine learning engineers, often with legal backgrounds.

The most valuable hires are those who understand both domains:

Former lawyers who transitioned to data science
Computer scientists with law degrees
Product managers from legal tech companies
Engineers with experience in regulatory compliance

Impact on Traditional Legal Careers

This shift raises important questions about the future of legal careers. Expect firms to hire fewer associates where AI engineering can handle repeatable work but make no mistake: young lawyers will still be needed. Their skills must evolve. Understanding large language models and how they work matters far more than knowing how to code them from scratch.

Law schools are beginning to respond. The rise of AI and data privacy law is prompting law schools to integrate specialized courses on emerging technologies. Tomorrow's lawyers will need to be as comfortable with algorithms as they are with precedents.

The Competitive Landscape Transformation

The firms investing most heavily in technology talent are creating sustainable competitive advantages that will be difficult for competitors to match. The magnitude of investment required will be difficult for many mid-sized firms, and it illuminates the competitive threat.

This creates a bifurcated market:

Technology Leaders:

Firms with internal tech teams that can build custom solutions, integrate complex workflows, and offer truly differentiated services
Technology Followers:

Firms dependent on vendor solutions that offer limited differentiation and increasing commoditization

The Client Value Proposition

Ultimately, this massive investment in technical talent serves client needs. A notable 88% of law firm professionals agree that technology can improve client relationships. When asked about past technology investments, improving team and client collaboration (38%) and producing consistent quality work (37%) were most frequently cited as motivators for firms to invest in technology in the past year.

Clients increasingly expect:

Faster turnaround times through automation
More accurate work through AI-assisted review
Transparent pricing based on value rather than time
Access to sophisticated analytics and reporting
Integration with their own technology systems

Looking Ahead: The New Law Firm Operating Model

Alex Brown of Simmons predicts more deals like the Springbok and Wavelength ones. Demand for talent with both AI and data science skills is high and competition will be intense. Growth of in-house data science capacity gives firms an edge.

The law firms of 2030 will look dramatically different from today's partnerships. They will be hybrid organizations that combine legal expertise with sophisticated technology capabilities, competing as much on their technical infrastructure as their legal skills.

Key Predictions:

More law firms will acquire tech startups to gain talent and intellectual property
Chief Technology Officer roles will become standard at AmLaw 100 firms
Technology capability will become a primary factor in client selection
Firms without internal tech teams will face increasing marginalization

Strategic Implications for the Legal Industry

The great tech talent grab represents more than just another hiring trend—it's a fundamental reimagining of what law firms need to be successful. With advances in technology deployment, financial scale, and management discipline, second tier firms will likely face a significant threat in an extremely competitive marketplace.

For law firm leaders, the message is clear: building internal technology capability isn't just about efficiency—it's about survival. The firms that successfully combine legal expertise with technical innovation will define the future of legal services. Those that don't risk becoming expensive anachronisms in an AI-driven world.

The race for tech talent in BigLaw isn't just changing how legal services are delivered—it's determining which firms will lead the profession into its next chapter. And in this race, the fastest often win it all.