Markulf Behrendt, previously the Global Head of Employment at A&O Shearman, officially launched his own firm in May 2026. This new venture, Behrendt Legal Studio, operates out of Hamburg with a clear focus on employment law. The firm prioritizes an AI-native structure, a direct contrast to the traditional hierarchies found in large international law firms. By embedding artificial intelligence into the core of its operations, the firm aims to process complex mandates like M&A due diligence and contract drafting with greater efficiency. Behrendt spent 24 years navigating the world of Big Law, yet he now seeks a leaner path.
Rethinking the Law Firm Structure
The decision to leave a prestigious global firm stems from a desire to change how legal services reach corporate clients. Traditional models often rely on hourly billing and pyramid staffing structures. Behrendt Legal Studio rejects this, moving entirely to fixed fees and monthly retainers. Clients often find hourly billing opaque, but Behrendt argues that fixed pricing creates better alignment between the law firm and the client. The goal is to charge for strategic outcomes rather than time spent on a task.
AI serves as the engine for this efficiency. Rather than retrofitting technology into an existing, bloated infrastructure, Behrendt designed his studio around these digital tools from day one. He notes that corporate clients value speed and clarity above all else. While AI manages research and drafting, senior lawyers remain responsible for high-level strategy and client advice. This setup minimizes the need for large teams of junior associates, a staple of traditional law practice.
Addressing Complex Corporate Needs
Modern workforce challenges require high-level expertise, and the studio intends to handle the full spectrum of employment law. Their list of services covers restructuring, works council negotiations, and complex internal investigations. These issues frequently arise during cross-border transactions, where a single mistake can lead to significant regulatory or financial fallout. By keeping senior partners involved in every aspect of a mandate, the firm claims to bridge the gap between niche expertise and rapid delivery.
This shift reflects a broader change in the German and European legal sectors. Other attorneys are moving away from the partner-led, massive-platform model in favor of agile, technology-driven boutiques. Companies now view employment law as a strategic pillar rather than a back-office function. As corporations deal with changing labor regulations and the integration of new workplace technology, the demand for specialized, responsive legal counsel continues to grow.
Commitment Beyond Profit
Profit is not the only metric for the firm. Behrendt has integrated a social-impact mandate into the company structure. A set portion of the studio's annual profit is pledged to community-focused legal initiatives and social causes. This move serves to differentiate the studio from competitors who keep their social responsibility efforts separate from their core business model.
Observers of the legal market will watch how this model performs against the incumbent giants. The experiment tests whether clients will prioritize the efficiency and clarity of a boutique firm over the deep bench and global reach of a legacy firm. If successful, Behrendt’s move could signal a trend where senior partners feel emboldened to leave Big Law to build leaner, tech-forward firms that operate on their own terms. The next several months will provide more data on whether this AI-native approach holds up under the pressure of large-scale, high-stakes mandates.