A new Thomson Reuters Report reveals what may be an uncomfortable reality that many don’t want to hear. Quite simply, AI will require fewer lawyers and less billable time to do tasks. But 90% of legal dollars still flow through hourly billing which is the same structure we’ve had since the 1950s. Think about the math: if AI cuts the time to draft a brief from 25 to 10 hours, a lawyer with a rate of $300 today would need a rate of $750/hour to make up the differance. I’m not sure clients will pay that premium just to subsidize law firm profits. It may be necessary to fundamentally rethink the billable hour business model.
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