Freshfields Bruckhaus Deringer is examining whether to separate its legal technology division, Freshfields Lab, into a standalone company potentially worth billions. The initiative was first detailed by Alan Mason, the firm’s global managing partner, in an internal email to Ethan Klingsberg, co-head of US corporate and M&A, last Friday. The proposal included plans to seek outside investment and structure the new entity to maximize its valuation.

The message was unintentionally sent to a wider group over the weekend when Mason forwarded it to a general distribution list. Although the email was later retracted, some recipients had already preserved copies. The exchange confirmed that Mason had already reached out to two Wall Street banks to assess the proposal, with Klingsberg noting the business could be worth billions.

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Freshfields Lab creates AI-powered solutions for the firm’s legal teams and clients, specializing in document review and due diligence. Unlike independent legal tech companies such as Harvey—valued at $15.5 billion, and Legora, valued at $5.6 billion, each with over 1,000 clients, Freshfields Lab remains fully embedded within the law firm’s operations.

Freshfields is not the only firm exploring AI-driven ventures. Allen & Overy collaborated with Harvey and Microsoft to launch ContractMatrix, an AI tool for contract analysis, while A&O Shearman announced plans to deploy AI agents for complex legal tasks, again partnering with Harvey. Kirkland & Ellis has committed $500 million to develop its own AI platforms, including a system that allows seamless switching between different AI models without requiring a full system overhaul. Earlier this year, Freshfields itself formed a multi-year partnership with Anthropic, integrating its Claude AI system across all 33 of its offices.