10 AI Law Firms to Watch in 2026 

The legal industry is witnessing the rise of “full-stack AI” law firms – firms built from the ground up with artificial intelligence at their core, rather than retrofitted to existing structures.  

Y Combinator’s Request for Startups 2025 challenged founders to “start your own law firm, staff it with AI agents, and compete with existing law firms”, rather than just selling software to traditional firms. Is this the start of a paradigm shift? Instead of AI as a way of making existing professional services structures more efficient, do new entrants have the potential to fundamentally reinvent how legal services are delivered? As Mary O’Carroll highlighted on her recent podcast, AI-powered firms are reshaping the traditional pyramid structure of professional services firms beyond law – moving toward a leaner “obelisk” model, perhaps with fewer junior staff, new pricing models (away from billable hours), and an “AI-first” mindset.  
 
Below we highlight legal service providers to watch in 2026, each of which is leveraging technology (and in particular generative AI) as a core part of its value proposition. We note what they do, where they’re based, and their stage/funding where available. 

Crosby

Location: New York 

Funding: Raised $5.8M seed and $20M Series A.  

Focus: Contract Review (Revenue Contracts) 

Crosby is an “agentic AI-powered law firm” that combines custom software with in-house lawyers for contract review. Supports a number of companies that are also backed by its VCs. 

Garfield AI

Location: London, UK 

Funding: Unknown 

Focus: Debt Recovery 

Garfield AI made headlines as the “the first fully AI-powered law firm authorized by the UK’s Solicitors Regulation Authority”. It specializes in small business debt recovery and small claims, offering low-cost legal services online.  

Avantia Law   

Location: London and New York 

Funding: Seed (Hoxton Ventures) 

Focus: Funds & Private Equity 

Avantia merges a traditional corporate law practice with AI automation. Its proprietary platform ‘Ava’ handles routine legal tasks. The firm has no billable hours and offers fixed-price services.  

Tacit Legal/Tilder 

Location: UK 

Funding: Unknown 

Focus: Contracts & Commercial (including contracts on third-party paper) 

Tacit Legal is an AI-driven law firm blending human lawyers with its proprietary platform “Tilder” for contract review. The firm is regulated by the SRA and developed Tilder to provide ‘law firm assurance at an AI price point’ for commercial contracts. Contract can first be analyzed by AI and then signed off by a senior lawyer. Tacit charges a fixed fee (starting around £95 per contract).  

Alaro 

 Location: UK 

Funding: Unknown 

Focus: Commercial contracts. 

Alaro offers AI-powered legal support for startups and SMEs, combining automated contract handling with human oversight. Provides fixed-fee services.  

Three Points Law 

Location: UK 

Funding: Unknown 

Focus: Sports and tech law 

A boutique AI-native firm focused on sports and tech law. Integrates Legora into legal workflows. Operates primarily on value-based fees.  

Covenant 

Location: New York 

Funding: Raised $4M seed from Flybridge Capital. 

Focus: Funds 

An AI-native law firm for private investors, using AI for fund formation and LP agreements.  

Lexsy 

Location: San Francisco 

Funding: Raising seed round 

Focus: Early-stage and fast-growth companies 

An AI-powered law firm for startups founded by an ex-Cooley lawyer. Offers productized legal services with fixed fees.  

Eudia 

Location: Palo Alto 

Funding: Raised $105M from General Catalyst. 

Focus: Contract and M&A 

Eudia opened a regulated AI-augmented legal service business in Arizona, offering contract and M&A due diligence for enterprise clients.  

Paralex 

 Location: Washington, D.C. 

Funding: Unknown 

Focus: Small business legal support 

A hybrid AI + attorney platform for small business legal support. Offers flat-fee, rapid turnaround services. Paralex (the platform provider) is not a law firm but has an arrangement with a separate entity, Paralex Law. 

Conclusions: Predictions for 2026 

1. More AI Law Firm Launches 
   The pace of AI-native law firm formation accelerates, with new entrants targeting specific high-volume practice areas using off-the-shelf LLM infrastructure and custom orchestration layers. 

2. BigLaw Repositions Delivery Centers 
   Large firms convert offshore and regional centers into AI-first delivery hubs or spin out adjacent AI-native sister firms to absorb efficiency gains without disrupting core brand economics. 

3. BigLaw or ALSP Acquires an AI-Native Firm 
   A major law firm or ALSP will acquire an AI-first firm to fast-track internal capability, marking a shift from tool adoption to organizational transformation. 

4. VC Capital Crosses the Atlantic 
   UK-based AI-native firms attract Series A and beyond funding from U.S. crossover funds and European legaltech investors.