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Silicon Valley law firm partners earned more than their New York peers in 2025. New data shows how AI and technology work are changing lawyer pay.

Partners in Silicon Valley earned an average of $2.57 million last year. That was 4% more than partners in New York.

The figures come from a new survey by legal recruiting firm Major, Lindsey and Africa (MLA). More than 1,000 lawyers from large U.S. law firms took part.

New York has long been a top market for high-paid lawyers. However, Silicon Valley is now gaining ground. Its strong tech sector is creating more work for law firms.

AI Boom Drives Silicon Valley Partner Pay

The tech industry needs more legal help. In particular, AI companies need lawyers for deals, lawsuits, and business matters.

MLA recruiter Kirsten Keegan Vasquez said demand for AI legal work is helping boost partner pay in Silicon Valley.

Many tech deals also need large legal teams. For example, AI companies need help with business deals, patents, data, and rules.

As a result, law firms with strong tech teams may gain more work.

AI Investment Creates New Legal Jobs

The growth of AI companies is creating new work for lawyers. They now handle deals, patent rights, data safety, and legal rules.

Also, large deals often involve teams from several law firms.

For example, lawyers from Palo Alto-based Wilson Sonsini Goodrich and Rosati are working on matters tied to Anthropic’s planned initial public offering.

This shows how tech growth can create more legal work. Therefore, firms with strong tech teams may see higher demand.

Partner Compensation Keeps Rising

Partner pay is rising across the legal market. The trend goes beyond Silicon Valley and New York.

At the 200 largest U.S. law firms, average partner pay reached $1.55 million. This marks a 10% rise from MLA’s 2024 survey.

Pay has also grown over time. In 2016, average partner pay stood at $877,000.

Therefore, partners now earn much more than they did a decade ago.

Higher Billing Rates Support Partner Pay

Higher hourly rates are also helping drive partner pay.

MLA found that the average partner billing rate rose from $1,114 in 2024 to $1,242. That is an 11% increase.

Some top lawyers charge much more. In fact, partner rates at major firms can exceed $3,000 an hour. Some reach $4,000.

Associate rates have also gone up. For example, some associates at firms such as Willkie Farr and Gallagher charge up to $1,500 an hour.

Survey author Louis Ramos noted that the late-2000s financial crisis slowed rate growth for several years.

However, billing rates have since climbed. This shows how much the cost of legal services has changed.

Law Firms Reward Associates for AI Training

AI is also changing how law firms measure associate work.

In the past, associates focused mainly on meeting billable-hour targets. Now, some firms give credit for AI training and related projects.

This change shows that firms see AI skills as useful to their future.

Axinn Offers AI Billable-Hour Credits

New York-based law firm Axinn now offers associates up to 100 billable-hour credits. Associates can earn them through AI training and other AI projects.

The program runs through November 30. This date marks the end of the firm’s current bonus year.

Chief Innovation Officer Rachael Philbin said the program supports the firm’s rollout of AI tools. It also aims to help lawyers explore new ways to work.

Other firms have taken similar steps.

Boston-based Ropes and Gray lets first-year associates use up to 20% of their required hours for AI work. That equals nearly 400 hours.

The firm also allows other associates and counsel to count up to 100 hours.

Meanwhile, Akerman and Holtzman Vogel also give credit for some AI training and projects.

These changes show that AI skills are becoming more valuable in law firms.

Impact of Rising Partner Pay

The new pay figures show several changes in the legal market.

First, location still plays a major role in lawyer pay. Silicon Valley benefits from its strong tech sector and demand for legal services.

Second, higher billing rates help raise partner earnings. As firms charge clients more, partner pay can also grow.

Third, AI is creating new work for lawyers. As a result, firms are investing in new tools and training.

However, pay depends on more than location. Practice area, firm profits, client demand, and personal results also matter.

For law students and lawyers, these trends offer useful career insights. They also show which legal skills may become more valuable.

AI Reshapes BigLaw Compensation

Silicon Valley’s lead over New York marks a shift in BigLaw pay.

The region’s tech sector continues to create work for skilled lawyers. Meanwhile, higher billing rates are helping push partner pay upward.

New York remains a major market for high-paid lawyers. However, Silicon Valley’s latest results show the growing value of tech-related legal work.

As AI investment grows, law firms with strong tech teams may gain more clients. They may also find new ways to grow revenue and attract top lawyers.

Explore top legal jobs and discover career opportunities at leading law firms. Find your next legal career move with LawCrossing.

See Also:

Weil and the Growing Crisis of Defunct Law Firms

The post BigLaw Partner Pay Favors Silicon Valley Over New York first appeared on JDJournal Blog.