AI in Law and Professional Services: Harvey to Big Four — 2026-10-25
Major legal AI player Harvey has expanded its October releases to integrate with existing firm systems, while rival Legora continues its aggressive valuation growth. Meanwhile, Big Four accounting firms are seeing significant AI-driven revenue growth, with EY reporting a 49% increase in AI-related sales and hiring 10,000 new staff.
AI in Law and Professional Services: Harvey to Big Four — 2026-10-25
Top developments
Harvey’s October 2026 Product Expansion
Harvey AI announced new product releases in October 2026 that allow legal teams to find matter content within their existing systems, ground legal research in local authority, and verify figures in complex documents. This update aims to deepen integration into law firm workflows, moving beyond standalone research tools to embedded operational support.
EY’s AI Boom Drives Hiring Surge
EY reported a 49% year-over-year increase in AI-related sales for its latest financial year. To support this growth, the Big Four firm added nearly 10,000 staff globally, focusing on projects that transform client businesses through AI implementation. This highlights the shift in professional services where AI is no longer just an efficiency tool but a primary revenue driver.
Flat-Fee Pricing Gains Momentum Over Hourly Billing
A new litigation insights report from October 2026 indicates that 71% of clients now prefer flat-fee arrangements over traditional hourly billing. AI tools are increasingly enabling reliable flat-fee pricing by reducing the uncertainty in litigation effort, challenging the century-old hourly model that dominates Big Law.
Junior Accountants Face AI-Driven Role Changes
As AI takes over routine tasks like reconciliation and tax preparation, junior accountants are being advised to adapt their skill sets. CPA Practice Advisor notes that the traditional entry-level workload is disappearing, forcing new entrants to focus on higher-value analytical and advisory roles to remain competitive.
Local view
German Firms Navigate AI Act Compliance
German legal and tax firms are grappling with new compliance requirements under the EU AI Act, which mandates specific AI competency and transparency obligations. Law firm Pastori & Kollegen highlights that these duties, effective from August 2026, require firms to implement rigorous checks on AI outputs to avoid liability.
Data Security in German Tax and Audit
German data security firm Data Security One emphasizes the need for human oversight in AI-assisted tax and auditing processes. Their recent analysis suggests that while AI can automate approvals, human control remains critical to prevent errors in regulatory filings and ensure data privacy compliance.
Context & numbers
Valuation Gap Between Harvey and Legora
Harvey AI has reached a valuation of $15.5 billion with over $400 million in Annual Recurring Revenue (ARR) as of September 2026. In comparison, rival Legora is valued at approximately $5.6 billion with roughly $150 million in ARR, though it is in talks for a new round at an $8.5 billion pre-money valuation.
Legora’s Funding Talks
Legora is currently discussing a new funding round of at least $300 million at an $8.5 billion pre-money valuation. This comes six months after its last major round, with CEO reports indicating ARR has surpassed $200 million.
On the radar
- AI Hallucination Sanctions: Courts continue to penalize the use of unverified AI citations. Recent cases highlight the risks of "hallucinated" case law, with firms advised to implement strict citation verification protocols to avoid sanctions.
- Big Four Internship Trends: The Big Four firms (Deloitte, PwC, EY, KPMG) are opening over 20 internship roles, signaling a continued demand for talent despite AI automation, likely focusing on AI-augmented advisory roles.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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