AI is transforming the legal profession by challenging traditional billing practices

Artificial intelligence is reshaping how lawyers work, particularly in the U.K. and Ireland, where nearly 90% of legal professionals use AI tools. A report from Clio shows that firms using AI can handle more cases without increasing staff or resources while reducing costs by automating administrative tasks previously handled by support teams. The billable hour model is under pressure as AI drastically reduces the time required for document review and drafting, making it harder to justify charging clients based on hours worked. Major law firms like A&O Shearman and Slaughter and May are integrating AI tools such as Harvey into their workflows across multiple practice areas. Junior lawyers traditionally learned through repetitive tasks, but with AI handling much of this work, the profession is rethinking training methods. Additionally, legal professionals must now verify AI-generated content to avoid errors or hallucinations that could lead to sanctions.

By Lindsay Dodgson · CNBC ·

AI is transforming the legal profession by challenging traditional billing practices

Topics: Artificial Intelligence Billable Hour Model Law Firms Legal Profession

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