As we advance into 2027, a pivotal shift is unfolding within the legal industry. A significant number of law firms and in-house legal departments are transitioning to OpenAI Legal, which was launched in the latter half of 2026. At a modest subscription fee of $20 per month, OpenAI Legal has become an attractive option for many, especially with its strong privacy and confidentiality measures and a new feature that automatically checks citations for accuracy.

Understanding Commoditization

This rapid adoption is a textbook example of commoditization, where a product becomes so common and interchangeable that it loses its unique value, consequently losing its pricing power. In industries from airline seats to cloud storage, price becomes the primary competitive factor as differences in quality and features among providers diminish.

In the legal sector, commoditization is manifesting as once-novel GenAI tools are now seen as standard infrastructure. Legal professionals are shifting their focus from the capabilities of these tools to their cost effectiveness, questioning why they should pay a premium.

The Big Tech Perspective

Notably, tech giants like Apple are anticipating this trend, with some executives believing that investing heavily in proprietary GenAI models may not be cost-effective in the long run. Instead, Apple seems to be focusing on controlling the ecosystem in which AI operates—hardware, software, and services.

Potential Market Shifts

If companies like OpenAI decide to target the legal market directly with tools that meet the specific needs of legal professionals, other major players such as Google, Anthropic, and Perplexity might follow suit. This could drastically shift the legal GenAI market towards commoditization, making price the dominant competitive factor.

Current Market Dynamics

Today, many legal GenAI vendors argue that their products are uniquely suited to meet the stringent requirements of the legal industry due to ethical concerns and the need for accuracy. However, this perspective underestimates the potential of open GenAI systems, which could, with the right adjustments, satisfy these legal demands at a lower cost.

The Future of Legal GenAI

Could GenAI legal tools become fully commoditized? Absolutely. The vast resources and capabilities of open GenAI providers like OpenAI could allow them to offer comparable, if not superior, tools at a lower price point. This would challenge the current legal tech vendors' business models, which rely on their supposed uniqueness and specialized offerings.

Strategic Considerations for Law Firms

Law firms and in-house legal departments should not passively watch this unfold. Instead, they should actively monitor the market and adjust their technology strategies accordingly. This includes avoiding long-term contracts that lack flexibility, staying informed about technological advancements, and preparing exit strategies to adapt to rapidly changing market conditions.

The legal industry stands at a crossroads, with GenAI poised to redefine traditional paradigms. How legal professionals respond to these changes will shape the future of legal practice. Embracing flexibility and forward-thinking strategies will be key to navigating the impending commoditization of GenAI in the legal realm.