The legal profession is at a crossroads, caught between intensifying fears of AI-driven displacement and a generational opportunity for transformation. This Article provides a practical framework for navigating the shifting terrain. Situating legal innovation within a multi-century arc of technological change, the Article draws on management and strategy scholarship to develop two core organizing models: the Legal Services Value Chain and the Innovation Frontier. The value chain disaggregates the lifecycle of a legal matter into five distinct nodes of activity, providing a map for subsequent analyses. Building on that foundation, the Innovation Frontier traces LegalTech’s evolution from 2000s-vintage e-discovery to generative AI, showing how AI accelerates value-chain maturation while creating distinct risks—including professional responsibility tensions and potential system-level externalities. The Article then translates these insights into risk-sensitive guideposts for modernizing governance of AI-enabled tools and emerging modalities, from agentic systems to blockchain-deployed smart contracts. While the risks are real, they must not eclipse the opportunity. With calibrated oversight that aligns accountability to real-world risks, AI can expand access, improve service quality, and secure the profession’s future.