Legal AI Unicorn Harvey Faces Margin Crisis Amid Surging Token Consumption

Legal technology firm Harvey experienced a sharp decline in gross margins to negative 50% as professional users shifted to autonomous AI Agent workflows, causing token consumption to explode. The company eventually restored profitability by developing its own model architecture based on China's Kimi. Attorney Lin Shang-lun notes that this incident highlights how professional AI usage has far exceeded initial expectations, challenging traditional 'all-you-can-eat' subscription models and intensifying the cost-efficiency competition between U.S. and Chinese AI models.