Credit: Jane/Adobe Stock What Does Big Law Stand to Gain From Slow AI Adoption?
Observers in the legal tech industry speculate that firms' caution stems from a commitment to a profitability model dependent on high leverage and hourly billing.
May 23, 2024 at 09:00 AM
8 minute read
Artificial Intelligence
What You Need to Know
- Generative AI tools may force the most profitable law firms to rethink their business model as the efficiencies of legal tech undermine hourly billing.
- Big Law firms typically capture the bulk of their profit margin from an associate's efforts, which are increasingly handled by generative AI tools.
- Some firm leaders and tech vendors say generative AI will allow lawyers to deliver higher value to clients without the need to replace hourly billing.
As Big Law's relationship with generative artificial intelligence hits a yellow light at the intersection of caution and optimism, some in the legal tech community question how much of the caution is motivated by commitment to a profitability model dependent on high leverage and hourly billing.
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