Freshfields AI spin-off plans surfaced after a leaked internal email suggested the firm may carve out its legal-tech unit into a separate business “worth billions”. The speculation sparked internal debate about how the firm could monetize its technology assets.
Global managing partner Alan Mason wrote to Ethan Klingsberg, co-head of U.S. corporate and M&A, outlining a strategy to attract external capital and target a multibillion-dollar valuation. Mason’s proposal emphasized that external investment could accelerate product development and broaden market reach.
The message was mistakenly forwarded to a large internal list called “$Freshfields All”. Although the email was quickly recalled, screenshots had already been captured by some recipients. Recipients who saved the screenshots later shared them on internal forums, widening awareness of the plan.
According to the exchange, Mason has been in talks with two Wall Street banks about financing, while Klingsberg noted the new venture could be “worth billions”.
The unit under consideration, Freshfields Lab, builds tools that automate document analysis and streamline due-diligence work for the firm’s lawyers and clients.
Read Also: Weil Gotshal to Orderly Wind Down Operations
Reference points in the emails include AI firms Harvey and Legora, valued at $15.5 billion and $5.6 billion respectively, each serving more than 1,000 customers as independent, technology-first companies. Both companies have attracted venture capital and have expanded their service offerings beyond the legal market.
Kirkland & Ellis has earmarked $500 million for its own AI development, creating a platform that can switch among different AI models without rebuilding the system.
Earlier this year, the firm secured a multi-year partnership with Anthropic, deploying the Claude model across all 33 offices worldwide.
In a related development, former Allen & Overy global managing partner Wim Dejonghe co-founded an AI-powered law firm that focuses on commercial contract review, directly challenging the traditional billable-hour model. Dejonghe’s new venture seeks to offer fixed-fee pricing models powered by AI, challenging conventional billing structures.
