IPOs and the Coming Revolution of AI in Routine Legal Work
If you’ve ever been involved in an IPO, or even read about one, you know it’s a beast of a process. Months (sometimes years) of preparation, stacks of legal paperwork, and hefty legal fees. So, it’s no wonder clients are open to explore new ways to streamline these processes and save time and money.
And the options to do so are growing every day.
The Solomon in question is David Solomon, CEO of Goldman Sachs. According to him, AI could handle 95% of the work on an S-1 filing in minutes. Yes, minutes. If you’re in the legal world, this should grab your attention. IPOs have long been a steady source of profitable work for law firms, with teams dedicating endless hours to drafting, reviewing, and fine-tuning filings. But if AI can take over the heavy lifting, what happens to those billable hours, and the fees that come with them?
The Goldman Sachs Effect
As you know, Goldman Sachs is not just any player in finance; it’s a trendsetter. Announcing that it’s willing to test AI for an IPO filing signals a shift that will have consequences across the legal industry. Companies trust Goldman Sachs to be on the cutting edge. When an organization of that stature places faith in AI over lawyers, it raises hard questions about how much of our traditional legal roles are truly indispensable.
This also highlights a growing truth: AI is not just cutting costs; it’s redefining how high-stakes work gets done. IPO filings, once dominated by legal teams who bill by the hour, are now being reframed as a tech-driven process where efficiency rules. And the implications for a law firm’s pricing models are staggering. It’s no longer about time, it’s about the value delivered, and the expectations from clients moving forward. This will probably prompt some firms to embrace flat fees or value-based pricing, while others may pivot to premium, high-touch services emphasizing judgment, negotiation, and strategic insight, which AI cannot replicate. Yet.
Complacency Is the Real Risk
For that reason, the biggest mistake any law firm can make right now is shrugging this off as a problem that doesn’t apply to them. The reality is that technology doesn’t wait for an industry to catch up; it moves forward regardless of who’s ready. If firms continue to treat AI as a fad, they’ll wake up to a world where their competitors have already mastered tools that can deliver faster, cheaper, and, in some cases, better results. After all, clients (especially corporate ones) won’t hesitate to follow the path of least resistance. Or least expense.
Now, the same clients who once paid top dollar for legal services are seeing companies like Goldman Sachs find ways to do the same work without lawyers. This doesn’t mean they’ll stop needing legal expertise entirely, but it does mean they’ll start questioning where and how that expertise is most valuable. Law firms need to define their place in this new ecosystem, otherwise the market will define it for them.
Lessons From Other Industries
The best thing to do right now is to look at what happened to journalism, retail, or even healthcare. In each case, new technologies didn’t just change the way work was done; they fundamentally altered the business model. While the work of law firms may be in a different category, this doesn’t mean they aren’t immune to this kind of upheaval. The idea that “this is how it’s always been done” is not a shield against change, but rather an anchor dragging firms down.
So, what’s the solution? It’s not just about adopting a few AI tools; it’s about recognizing that AI has the potential to fundamentally reshape the concept of a law firm. Firms need to plan for when this transformation happens, not if. Thriving in this new era won’t come from resisting change but from strategically integrating AI to stay ahead. This means not just using AI for tasks like streamlining back-office operations, improving client communication, or enhancing legal research, but rethinking how the firm operates and delivers value in an AI-driven world.
The message here is simple: complacency isn’t an option. When organizations like Goldman Sachs start experimenting with AI in ways that encroach on traditionally lawyer-dominated territory, it’s a sign that the ground is shifting. The legal industry can either adapt and thrive or cling to outdated models and risk irrelevance. The choice is yours. But the clock is ticking.