By September, nearly every merger conversation involved AI in some way, often as a reason for scale and sometimes as a deal in itself. Legal tech valuations have soared. Reports put Harvey at around $11 billion and Legora, the Stockholm-based challenger, at around $5.5 to $5.6 billion, though figures differ across sources. Legora is reported to have won European firms by focusing on EU data residency, and Harvey has been expanding in Europe, including through a partnership with Eversheds Sutherland, with reports that it is looking at acquisitions there. Slaughter and May is reported to have picked Harvey firm-wide after testing both platforms.

For law firm buyers and sellers, this changes the questions in due diligence.

What does the target actually use? Different AI tools across a merged firm mean duplicate licences and retraining. Buyers will ask which platforms the target has contracted, on what terms and for how long.

What does AI do to valuation? A firm with heavy volume work may be valued differently if AI shrinks billable hours. Some buyers will pay more for a firm with data and workflow they can automate. Others will pay less if they expect fee pressure. Sellers should be ready to explain how their model holds up.

Who owns the data and the risk? Client confidentiality, data residency and professional duties apply to AI tools in the same way as to any other system. In a deal, expect questions about policies, supervision of AI output and incident history.

European angle. Because European data rules are strict, firms operating across the UK and EU need tools that satisfy both. That is one reason locally built platforms have found a market.

Talent. Younger lawyers increasingly ask about technology when choosing a firm. A merger that promises better tools can help recruitment, while one that cuts them can hurt.