Victorian Lawyers Use AI More Than Half the Time But Fees Stay High

More than half of Victoria’s lawyers have reported using AI in their work, according to a new study, but just over a quarter say they have reduced fees as a result of efficiency gains. The 2026 census of 2,221 of the state’s lawyers, conducted by the Victorian Legal Services Board and Commissioner’s legal services research centre, found a big increase in lawyers using AI in their practices, rising from 37% to 55% in the last year ^[1].

Key facts * AI usage among Victorian lawyers rose from 37% to 55% in the last year ^[1]. * Just 26% of lawyers reported that their use of AI has resulted in lower client fees ^[1]. * 79% of lawyers reported using consumer chatbots such as ChatGPT, Claude, Gemini or Copilot ^[1]. * 46% of lawyers reported that clients were arriving with inaccurate or misleading information generated by AI ^[1].

What are the trends in AI adoption? AI use was most common in trade practices (85%), banking and finance (78%) and information technology and telecommunications (78%), while it was used much less in criminal law (29%), family law (45%) and administrative law (46%) ^[1]. While the 2025 report found AI use was highest among those under 30 years of age, in 2026 this disparity had largely disappeared, although usage remained low for those aged 60 and over ^[1].

Why haven't fees dropped for most clients? The increased use in AI has not translated to a reduction in fees for most, with just 26% of lawyers responding that their use of AI had resulted in lower client fees ^[1]. Reduced fees were more likely to be reported by those working for business clients (34%) compared with individual fee-paying clients (23%) ^[1]. The principal researcher and report co-author, Dr Georgie Rychner, said fee reductions in corporate and big firms could be attributed to the fact clients in those settings were repeat users of legal services ^[1].

How is AI affecting the workload of lawyers? Clients seeking advice from chatbots have added to the workload of lawyers, forcing them to correct errors made by AI ^[1]. In 2026 there had been a rise in clients using AI for their own legal research, with 46% of lawyers reporting their clients were arriving with inaccurate or misleading information, and 41% presenting AI-generated documents that required correction ^[1]. Nearly half of lawyers said there was an increase in time and effort required if their clients used AI, compared with 19% who said it led to a reduction in time and effort ^[1].

What are the risks of using AI in legal services? Courts and legal practitioner bodies across Australia have been grappling with the rise in AI use among lawyers and the public since 2023 ^[1]. A Victorian lawyer last year was the first in the country to face sanctions for false citations discovered, being stripped of his ability to practise as a principal lawyer ^[1]. Investigations were also launched by regulatory bodies in Western Australia and New South Wales in similar cases ^[1].