On Thursday 5 November 2026, international law firm A&O Shearman, which has an office in Luxembourg announced a $1.1 billion (€1 billion) commitment over five years to expand its artificial intelligence (AI) strategy, focusing on developing specialist tools and services across its legal practices.
Under the strategy, each practice will dedicate at least 3% of its time to developing AI tools tailored to its area of law. The majority of the investment will come from lawyers' time rather than direct financial expenditure.
According to the firm, four years of experience with AI have shown that specialist tools incorporating legal expertise deliver greater value to clients than generic AI systems. The initiative aims to improve efficiency, reduce costs and provide faster access to legal expertise.
A&O Shearman reported that demand for its ContractMatrix AI services increased ninefold over the past twelve months. The firm has also secured contracts to provide AI-powered legal services to clients across multiple jurisdictions.
In September 2026, 96% of the firm's partners and 93% of its lawyers used its AI tools, completing more than 558,000 activities through ContractMatrix and Harvey, its legal workflow platforms.
Hervé Ekué, A&O Shearman's Global Managing Partner, said: "This significant investment signals where we intend to take the firm over the next decade. AI lets us bring an enhanced skillset to our clients' work, however complex, on a global scale and in a way that wasn't possible before. It opens new ways to deliver value and sharpens how we compete. The firm that leads will combine exceptional legal judgment with the speed and scale to apply it consistently, anywhere in the world. We intend to be that firm and that is what this investment accelerates."
Patrick Mischo, Managing Partner of A&O Shearman's Luxembourg office, added: "Our Luxembourg team has been at the forefront of legaltech for years, with tools such as FundsFlow DocMaker, Boards by A&O Shearman and AI Classifier already helping clients work more efficiently and with greater confidence," said Patrick Mischo. "We leverage AI to amplify what our people can do, and we are bringing everyone along with us. Law remains a people business. Our lawyers' judgment and client relationships are our greatest asset, and they will matter more, not less, as AI reshapes how we work."
The firm's AI development dates back to 2022, when it became the first law firm to introduce generative AI across its operations. In 2023, it developed ContractMatrix in collaboration with Microsoft and Harvey.
A&O Shearman has since expanded its services with ContractMatrix Vantage and additional AI tools designed for businesses, financial institutions and other law firms.
The firm emphasised that qualified lawyers remain responsible for all legal advice, regardless of AI involvement, while internal governance committees oversee the deployment of AI across its offices and practices.
