UK firms drop out of Spain's top M&A rankings as AI reportedly reshapes Big Law's business model and Africa's leading IP firm warns AI 'has to be babysat'

Two connected signals from the legal market point to how AI is beginning to reshape practice economics and competitive dynamics at elite law firms. First, commentary from law.com's international edition argues that AI alone will not rescue Big Law's business model, quoting Adams & Adams, described as Africa's leading IP firm, alongside Bowmans and ENS as firms grappling with how to deploy AI responsibly. Adams & Adams is quoted directly: 'Even in our commercial departments, we are of the view that AI has to be babysat.' The piece suggests that even firms experimenting seriously with AI tools maintain strong human oversight requirements, rejecting the idea that AI autonomously delivers efficiency gains at scale. Second, in a development with direct competitive implications for Magic Circle and Silver Circle firms, UK-based law firms dropped out of the top ten in Spanish M&A legal adviser rankings in the first half of 2026, with domestic and US-led firms taking market share in a subdued deal environment. While the Spanish rankings story is not primarily AI-driven, the law.com framing explicitly links it to the broader question of whether AI-enabled US firms are outcompeting UK incumbents on cross-border mandates. Together, the two signals reinforce a common theme: AI adoption pressure on law firm business models is intensifying, but the 'AI replaces lawyers' narrative is being actively contested by practitioners on the ground.