AI shakes up big law, threatening the billable hour
Major law firms are integrating AI to automate tasks and create new products, forcing a rethinking of pricing and business models.Summary
In 2021, Volkswagen's software arm Cariad partnered with Freshfields Lab to develop an AI platform for real-time global risk assessments, marking an early shift toward technology in legal workflows. Major law firms are now rapidly adopting AI tools to handle large volumes of data, such as summarizing contracts and conducting document reviews, which has led to the creation of new products like Freshfields' Multijurisdictional Insights Platform. This technological shift is forcing firms to rethink pricing models, moving away from the traditional billable hour to multi-tier options that offer trade-offs between speed, quality, and cost. Additionally, the industry is restructuring its workforce, hiring engineers alongside lawyers and focusing on advisory roles, though some areas like banking supervision remain resistant to AI due to the need for human judgment.
(Source：Los Angeles Times)