The use of alright in place of all right has never been recommended by dictionaries or usage authorities, but this convention is not likely to last. Web searches already generate approximately one alright for every all right, and the brevity and versatility of alright is likely to overpower the clunkiness (in some uses) of all right.
Even though alright is closing ground on all right, the latter is never wrong and the former is still considered problematic by some. So if you want to exercise caution in your writing, avoid alright.
Examples
Publications with high editorial standards have not abandoned all right—for example:
The Banks Are Not All Right [NY Times]
Shortstop Derek Jeter jokingly said he’d be all right, as if a 94-mph fastball to the side of a 38-year-old knee is nothing. [Wall Street Journal]
[I]t’s all right to be a bastard, as long as you have something original to say. [Financial Times]
