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.

Comments

Post a Comment

Popular posts from this blog

Top Shelf: How to Maximize Lawyer Staff in a Modern Law Firm

Image
Broadly speaking, lawyers take on too much.  You know: at work, emotionally.  They’re probably also trying to carry too many grocery bags into the house at one time.  You know how it is.     This, of course, leads to a whole host of problems, including that attorneys have higher incidences of alcohol and drug dependence, as well as depression, than does the general population .  Maybe you already knew that.  But, the fact is that this also has a direct effect on how much a lawyer can make. Hear me out: Because lawyers try to do everything, and to do everything perfectly, they’re also more prone than the general population to take on more work than they need to.  For example, they’re unwilling to delegate, including to paralegal and administrative staff, but also to other attorneys.  That means that lawyers end up being chief cook and bottlewasher, rather than focusing on the high-end work (strategy , client engagement), that they get paid the most for.     That’s why developing proces
Read more

Transfer Portal: Sharing Files Securely is a Piece of Cake Now

Image
If you’re still sharing files with clients, referral sources and other attorneys, via email attachment – or, heaven forfend: fax! – you need to step up your game .  Email is an inherently unsecure technology; so, if you’re sending confidential information via email, you need to secure that information, by encrypting it – at the document level, or at the system level .  But, that takes additional time and effort, and cost s more.   Instead, why not share confidential information through a secure , encrypted platform, th rough which the person who is to receive the information logs into, thereby bypassing the email problem, where that information passes through several servers (some of which may be unencrypted), before reach ing its final destination .  With a client portal, your document stays where it is (safely encrypted), and your recipient comes in to get it.     Now, you can share files and documents via document storage programs in this fashion, using tools like OneDrive
Read more

Away Game: Law Firms Need Policies for Remote Workers

Image
Working from home ain’t the same as working in the office.  I mean, you can’t do your laundry at the office – unless you have a really nice office setup .   Now, the thing that’s interesting is that most law firms – most employers, I would go so far as to say – treat in-office and virtual employees the same way .  That’s a combination of inertia, and a failure of imagination .   But, that’s not the only problem .  Remote employees also require law firms to adopt additional policies.   The most obvious, bedrock policy in that regard is the remote work policy .  But, it also makes sense to build a data security policy (also known as a written information security program ( WISP)) , which does not have to be a huge document (1-2 pages suffice), and which may be required by state law .  That would cover your data protection guidelines, inside of and outside of the office .  If your outsourced staff are contractors, you should also have an independent contractor agreement, with ea
Read more