Inflation: How AI Features Will Add to the Cost of Software

Legaltech software vendors, are racing to add artificial intelligence features to their products, as demand has grown for tools built for law practices – so that attorneys can shift from attempting to utilize (or attempting to avoid) general use products, like ChatGPT or Google Bard.  And, even if the demand for AI among lawyers has been somewhat overstated (which it probably has), lawyers will pay for AI services. 

 

The real question is: How much? 

 

Because what differentiates AI software from non-AI software is that technology companies are charging separately for AI tools.  And, this has not been the case previously, when lots of software features have been added to platforms, at no additional cost.  When case management software providers had previously added proprietary or white-labeled esignature tools, that feature became part of the regular platform, at the regular price.  When case management software providers built their own epayment tools, users still had to pay processing fees – but, users still got a better deal, because they no longer had to pay the platform fee for those products; instead, that was wrapped up into the product fee for the law practice management software.  But, AI tools are being sold differently.  In some cases, a single use of an AI program costs more than the monthly payment for the law practice management software. 



So, the question becomes: Will lawyers pay for AI tools at that rate? 

 

Who knows?  But, the market will make the determination as to where this lands. 

 

. . .

If you want to talk about the value of AI-based tools for your practice, give us a call. 

Through a unique partnership between the bar association and Jared Correia's Red Cave Law Firm Consulting, National Creditors' Bar Association members have access to experienced law practice management consultants at a special discount rate.

To get started, visit Red Cave's NCBA landing page, and start running your law practice like a business.

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