Artificial intelligence is transforming the technology sector, but its impact extends far beyond the companies building the models.
Across California, billions of dollars are being invested in AI infrastructure, cloud computing and digital assets, creating increasingly sophisticated legal work and driving demand for Tech Transactions lawyers. As companies enter complex commercial partnerships and invest in the technologies underpinning the AI economy, the role of Tech Transactions lawyers is evolving alongside it.
To explore what's happening on the ground, we spoke with Cole Evarts, Senior Legal Recruitment Consultant at Sonder Consultants, who specialises in recruiting Tech Transactions lawyers across California. In this Q&A, Cole shares his perspective on the forces driving demand, the skills firms are prioritising, how AI is reshaping the practice, and what associates should know if they're considering a move into one of the market's fastest-growing areas.
Q: Tech Transactions has been one of the busiest areas of the California legal market this year. What's driving that demand?
Cole: AI has been the biggest catalyst, but it's really the amount of capital flowing into infrastructure that's driving the market. Hyperscalers are committing billions to compute capacity and data centers, while companies continue entering increasingly intricate commercial partnerships. Every one of those commitments requires legal support, and that's translated directly into a sustained pipeline of work for these lawyers.
Q: AI seems to be at the centre of many conversations. How is it changing the work Tech Transactions lawyers are doing?
Cole: The role has expanded considerably. These lawyers are increasingly involved much earlier in the business lifecycle, advising on product commercialization, strategic partnerships, governance, and risk allocation. As these systems become embedded across businesses, clients want counsel who can provide practical judgment, not just paper the agreement.
Q: What types of transactions or commercial agreements are becoming more common as companies continue investing in AI?
Cole: We're seeing increased activity around strategic partnerships and arrangements supporting digital infrastructure. That includes model licensing, cloud and compute contracts, data rights, product integration, and joint development deals. As capital continues flowing toward these priorities, this category is becoming a much larger share of overall deal volume.
Q: Are you seeing demand from particular types of clients, such as technology companies, investors or AI start-ups?
Cole: It's much broader than startups. Venture-backed companies remain active, but appetite is also coming from hyperscalers, established public companies, private equity sponsors, infrastructure investors, and strategic buyers. Nearly every major player has capital deployed here, and that's fueling momentum across the market.
Q: Has the profile of the ideal Tech Transactions Associate changed as the market has evolved?
Cole: The core profile hasn't shifted dramatically. It's always been a specialized practice built on strong drafting and sound judgment. What's changed is the subject matter. A few years ago, the strongest candidates had deep SaaS and licensing backgrounds. Today, firms are placing real weight on exposure to model licensing, cloud infrastructure, and the governance issues that come with them. That's become baseline rather than a differentiator.
Q: What skills or experience are firms looking for when hiring Tech Transactions lawyers in today's market?
Cole: It's a highly specialized practice, so firms generally look for lawyers who built their careers in it from the outset. The candidate pool is relatively shallow, which makes strong training and exposure to complex matters especially valuable. As associates gain seniority, firms also expect them to operate with more independence and carry real ownership of matters.
Q: California has always been a major technology hub. Are there particular cities or markets where you're seeing the strongest hiring activity?
Cole: Silicon Valley continues to lead the market and remains a strategic priority for many firms given its concentration of technology companies and venture capital activity. At the same time, we're seeing strong opportunities emerge in San Francisco and Los Angeles as many associates look for elite practices without necessarily wanting to live in Silicon Valley. Firms like Gunderson have been particularly successful attracting top talent across their California offices by combining a market-leading platform with a collaborative culture and flexibility around where associates build their practice. We're also seeing Wall Street firms continue to build out their California presence, leveraging longstanding M&A and private equity relationships to expand their footprint and compete aggressively for both clients and talent.
Q: For associates considering a move into Tech Transactions, what advice would you give? Are there particular types of experience that make candidates especially attractive?
Cole: Marquee experience is certainly attractive to firms, but meaningful involvement matters just as much. Associates who can clearly articulate the role they played on a given matter tend to stand out more than those who simply have recognizable names on their resume. Many firms are willing to invest in talented associates who show genuine interest in the work, sound judgment, and a track record of sharpening their technical ability.
Q: Looking ahead, do you expect AI to continue driving demand for Tech Transactions lawyers, or do you see the market broadening beyond AI?
Cole: I expect this to remain one of the primary drivers of hiring. We're still in the early stages of the buildout, particularly around infrastructure and commercialization. Over time, it will become another core component of the practice, much like cloud computing did over the last decade, though I expect appetite to hold up as capital keeps moving into the broader ecosystem.
Q: What's one misconception people have about Tech Transactions as a practice area?
Cole: This won't come as much of a surprise to anyone working in the practice who's seeing this play out day to day. But for those outside it, one misconception is that Tech Transactions is simply deal support. Increasingly, some of the most consequential work in the market isn't centered on acquiring a company at all. It's centered on the underlying assets themselves. Whether it's model licensing rights, proprietary data, or the frameworks governing how those assets get developed and deployed, they're increasingly what drives value. Look at Microsoft and OpenAI, Amazon and Anthropic, or Google and Anthropic. These arrangements, not traditional acquisitions, are where some of the most important dealmaking is happening today.
