AI Meets the Law: How Gen AI Is Reshaping the Legal Profession

From ethical minefields to billing models, Barnes & Thornburg’s AI Chair Nick Sarokhanian shares how legal firms must adapt or be left behind in the era of generative AI.

The rise of generative AI is redefining entire industries—and the legal profession is no exception. But unlike other sectors focused purely on innovation and disruption, the legal field finds itself navigating a complex web of ethical obligations, risk management, and evolving business models. At the forefront of this transformation stands Nick Sarokhanian, Chair of the AI Practice at Barnes & Thornburg, who is helping the firm—and its clients—reimagine the practice of law in a world shaped by artificial intelligence.

Building an AI-Driven Legal Powerhouse

Barnes & Thornburg’s AI practice spans more than 70 attorneys across the United States, bridging commercial litigation, labor law, intellectual property, and more. Under Sarokhanian’s leadership, what began as a niche initiative has evolved into a strategic firmwide priority.

“The use cases of generative AI are nearly limitless,” Sarokhanian explains. “And the legal implications mirror that complexity. That’s why our approach needs to be equally expansive.”

A commercial litigator with a background in computer science, Sarokhanian brings both legal rigor and technical fluency to the firm’s AI vision. His focus is not just theoretical—it’s operational, embedding responsible AI practices into the firm’s daily workflows and client offerings.

Cautious Optimism Inside the Firm

Internally, Barnes & Thornburg has adopted what Sarokhanian describes as a “moderate but open” Gen AI policy. The firm maintains a strict whitelist of vetted tools and mandates explicit written client consent before any AI-generated output is used in client matters.

This policy isn’t simply about best practices—it’s grounded in ethics. “Even after a client is no longer a client—or even if they’ve passed away—confidences must be kept in perpetuity,” says Sarokhanian. That core commitment to confidentiality and data security is essential as firms experiment with new technologies.

Addressing Real-World Legal AI Challenges

Externally, Sarokhanian helps clients build their own governance frameworks for Gen AI—covering everything from patent filing automation to copyright compliance. “The devil’s in the details,” he warns. With clients ranging from entertainment firms to government contractors, every use case raises fresh legal questions.

For instance: Is AI-generated music too derivative of existing works? Are AI-transcribed Zoom calls discoverable in court? What responsibilities do companies have when AI is baked into enterprise software?

Sarokhanian also notes that many clients are still behind the curve. At Davos this year, a senior executive told him that only 10% of their clients are operationally ready to implement Gen AI. “That’s a staggering gap between aspiration and implementation,” he says.

Rethinking Revenue Models and Ethics

One of the most disruptive elements of Gen AI for law firms is its effect on traditional billing structures. The American Bar Association has made it clear: if AI cuts a task from ten hours to one, clients should only be charged for one.

That reality is forcing firms to rethink their value proposition. “It challenges the way we’ve always worked,” Sarokhanian notes. “But it also opens doors to focus more on high-value, strategic counsel.”

This shift is driving interest in flat-fee and subscription-based models—creating opportunities for innovation, but also requiring thoughtful recalibration of firm economics.

Looking Ahead: Litigation and Normalization

Sarokhanian sees two big trends on the horizon. First: a wave of litigation centered on Gen AI—from IP disputes to failed software implementations and breaches of AI governance agreements.

“We’re still two to three years away from widespread Gen AI litigation,” he predicts. “But it’s coming.”

Second: the normalization of Gen AI tools across legal workflows. Drafting contracts, analyzing discovery documents, or preparing legal memos may soon begin with AI. But human oversight, he insists, remains irreplaceable.

“AI can help you get started,” he says, “but it can’t replace judgment. That’s the lawyer’s value.”

A Call to Action: Start Small, Start Now

Sarokhanian believes the path to AI competence starts with experimentation. “Become both an explorer and an expert,” he advises. “If you’re an expert, AI makes you faster and sharper. If you’re still learning, it’s the best tool to accelerate your understanding.”

As Gen AI continues to evolve, firms like Barnes & Thornburg are proving that ethical, responsible integration isn’t just possible—it’s essential. By combining caution with curiosity, the legal industry can harness AI not just as a tool of disruption, but as a catalyst for better lawyering.

And for those still hesitant, Sarokhanian offers one final nudge: “Start small. Start safe. But start now.”