Pay Advance: Will AI Finally Force Firms to Move on From Hourly Billing?

There are some common themes across a recent spate of AI ethics opinions and practical guidance releases from bar associations.  One of those is that there is some question about whether AI will finally be the thing to force the majority of lawyers to adopt alternative fees (ie – not hourly billing), particularly flat fees. 

 

Of course, this isn’t really a new question, as it relates to legal technology – in essence, what’s being asked is whether, because technologies like AI allow attorneys to perform their work faster, law firms can still charge the rates they did before?  And, for hourly rates, the answer is pretty plainly ‘no’.  You can’t just make up hours that you’ve worked. 



Now, the reason flat fees are being suggested as an alternative in this environment, is because those types of fees are based on value, not hours. 

 

AI is not the reason, that you should consider alternatives billing methods, like flat fees; but, rather: it is another reason you should consider. 

 

The best news is that, in my experience, attorneys who adopt flat fees tend to make 15-25% more – even in contexts where AI is not involved at all. 

 

. . . 

 

AI is not coming: it’s here.  And, it is about to affect everything about your law practice.  Want to talk about it?  Just reach out! 

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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