Financial incentives
Latham & Watkins has launched a $1 million (£760,000) awards programme to reward associates who help develop new AI tools and drive the firm’s use of the technology.
The US giant’s new ‘Associate AI Impact Award’ will recognise junior and more experienced lawyers who come up with innovative ways to use AI, whether through building new tools, improving workflows or helping colleagues get to grips with the tech.
The firm has set aside a total of $1 million for the scheme in 2027, with individual awards varying depending on the impact of each contribution and its potential to be rolled out more widely across the business.
All associates across Latham’s global offices will be eligible to take part, with submissions expected to close in late spring next year. Winners will be selected through a firmwide nomination and review process, although the firm has yet to confirm when the first awards will be handed out.
Michael Rubin, global chair of Latham’s AI practice and chair of its AI strategy committee, said:
“Our associates bring firsthand insight into where AI can make a meaningful difference, and this award is designed to foster that ingenuity and help identify and scale the ideas that can create the greatest value for our clients and our firm.”
The bonus scheme is the latest sign of Latham’s growing appetite for AI. Last month, the firm teamed up with legal tech company Harvey to develop a specialist tool aimed at streamlining the paperwork involved in setting up investment funds.
That followed news in September that the firm had splashed out on its own Nvidia-powered servers, allowing its engineers to run and customise AI models in-house rather than relying solely on outside providers.
Latham isn’t the first major law firm to offer financial incentives to encourage staff to embrace AI. Last year, Shoosmiths unveiled a £1 million bonus pot linked to employees’ use of Microsoft Copilot, with the cash unlocked once staff collectively reach one million prompts.
The announcement comes as competition to get ahead on AI continues to heat up across the City. Magic Circle outfit A&O Shearman recently revealed plans to invest more than $1 billion over five years, with lawyers expected to dedicate at least 3% of their billable time to developing specialist AI tools.
Meanwhile, fellow Magic Circle player Freshfields has teamed up with Anthropic to develop new legal AI tools, while US giant Kirkland & Ellis has set aside $500 million to build its own AI technology.