"It's early 2027. Most law firms and in-house legal departments are rapidly moving to OpenAI Legal which launched in the third quarter of 2026. Most of them cite cost since OpenAI Legal is still just $20 per month. They are also confident that OpenAI has addressed privacy and confidentiality concerns, and that its new automatic cite-checking ability can accurately verify all outputs. What's remarkable about the shift is not so much that it happened but the speed at which the transition was made."
"This Is Commoditization The above hypothetical is what happens when a product becomes commoditized, which happens often. A commoditized product is one that has become so commonplace and interchangeable that it loses its uniqueness. And when that happens, it also loses its pricing power. Why? Once commoditization occurs, users see little meaningful difference between the various vendor options other than price. So, sellers can't charge a premium for what they provide, particularly when the lower cost option provides roughly the same features, quality, and performance."
"Commoditization shows up in legal tech if tools that once felt novel become expected infrastructure. At that point, lawyers stop asking "what does this do?" and start asking "why does this cost more than the other one?" If it happens to GenAI, it will have direct impact on legal tech vendors whose products are based on GenAI. And their customers."
In early 2027 most law firms and in-house legal departments rapidly adopt OpenAI Legal, launched in Q3 2026, attracted by $20/month pricing, resolved privacy and confidentiality concerns, and automatic cite-checking that verifies outputs. The rapid transition illustrates commoditization, where a product becomes commonplace and interchangeable, losing uniqueness and pricing power. Once commoditized, buyers focus on price because vendor differences are minimal, preventing sellers from charging premiums when lower-cost options match features, quality, and performance. Examples include economy airline seats and cloud storage. Commoditization in legal tech pressures GenAI-based vendors and prompts cautious strategies from major tech players.
Read at Above the Law
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