How a London law firm measures return on investment of legal AI in practice
Nick West of Mishcon de Reya discusses how his firm measures the ROI of legal AI tools like Legora, focusing on adoption, speed, and margin improvements.Summary
In an interview with Ari Kaplan, Nick West, a partner and chief strategy officer at Mishcon de Reya, outlines the firm's approach to measuring the return on investment (ROI) of legal AI tools, specifically Legora. West explains that the firm tracks usage and adoption metrics, as well as the impact of these tools on lawyer utilization, throughput, and the speed of work delivery. He details how ROI is calculated differently for fixed-fee matters versus time-and-materials engagements, emphasizing the importance of linking tool usage data with time recording and client satisfaction data. West acknowledges the challenges in obtaining granular data and suggests that firms should break down the complex ROI question into smaller, more manageable components, such as analyzing specific practice areas or client engagement methods. He stresses that while measuring ROI is difficult, it is essential for justifying technology investments and ensuring that tools deliver tangible business value.
(Source：Aba Journal)