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Sunday, 8 November 2026

Compiled with AI from public news sources. Folio is editorial commentary for commercial-awareness practice, not legal advice. Verify any detail against the linked sources before relying on it professionally.

All Capital Markets Regulation Disputes International AI & Law

Top Story/AI & Law

A&O Shearman Plans $1.1bn AI Investment, Requiring Lawyers to Devote at Least 3% of Billable Hours to Building Proprietary Tools

A&O Shearman has announced a $1.1 billion (£800 million) investment in artificial intelligence over the next five years, representing more than 5% of the firm's annual revenue. The plan requires lawyers across every practice group to set aside at least 3% of their billable time to assist in developing specialist AI tools, placing legal professionals at the centre of the firm's technology build rather than relying on off-the-shelf products. Global managing partner Hervé Ekué framed the move as a decade-defining strategic bet: the firm intends to combine exceptional legal judgment with the speed and scale AI enables, delivered consistently across its global offices. The approach builds on several years of experimentation, including an early partnership with Harvey, an AI platform for legal work, which A&O Shearman began testing in 2022 and went on to become one of its earliest major law firm customers. The announcement heightens competition across Magic Circle and elite US firms. Freshfields earlier this year partnered with Anthropic to give nearly 6,000 staff access to the Claude AI models. A&O Shearman's latest move shifts the terms of that race: the question is no longer simply which firm has the best AI access, but which is willing to commit the most lawyer time and capital to building proprietary capability. The commitment to directing billable hours into internal tool development is commercially significant. It signals that A&O Shearman views AI development as a core business activity rather than a back-office function, and suggests the firm expects purpose-built, practice-specific tools to deliver a durable competitive advantage over firms relying on generic platforms.

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Also Today

Anthropic's Planned $1.5 Trillion IPO Is in Doubt as AI Stock Rout and Investor Pushback Force Potential Valuation Cut or Delay

High Court Finds Manchester Law Firm Ratio Law Negligent Over Deleted Charge Text, Ordering £100,000 in Damages to Investment Company Client

Court of Appeal Rejects Home Office Claim That Kidnap for Ransom Is Not Exploitation of Trafficking Victims

Shriti Vadera Appointed as External Adviser to UK Chancellor on G20 Delivery and International Innovative Finance from October 2026

Bigger Picture

Sector Watch

AI Valuation Reckoning

The twin pressures of a sharp US tech sell-off and rising political opposition to AI data centre development have collided this week to test AI valuations at every level of the market. Anthropic's planned $1.5 trillion IPO is under serious investor pressure, with potential participants pushing for a cut to around $1 trillion. At the same time, A&O Shearman's $1.1 billion commitment to building proprietary AI tools, backed by a mandate for lawyers to spend 3% of billable time on internal development, signals that elite firms are racing to build durable AI advantages before the market consolidates around a few dominant platforms. The Freshfields-Anthropic partnership earlier this year set one model for AI access; A&O Shearman's internal build strategy sets a competing model. Which approach delivers better client outcomes, and at what cost, will define Magic Circle competitive positioning for the next decade.

One to Follow

CMA Phase 2 final decision on the nexfibre acquisition of Substantial (Netomnia, Brsk, Brsk ISP, YouFibre), due by the statutory deadline of 15 December 2026

The CMA has provisionally found competition concerns in wholesale fixed broadband services and has completed its remedies consultation, meaning the final decision will either clear the deal with structural conditions, impose divestiture remedies, or prohibit it outright, with major consequences for the consolidation of the UK's alternative fibre network market. Competition law, telecommunications regulatory, and M&A practices across all firms advising in the UK infrastructure sector should be tracking this closely.

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