Artificial intelligence is reshaping the economics of law — and the billable hour may be its biggest casualty.
As AI delivers unprecedented efficiency, the legal market is rewarding firms that price by outcome, guarantee efficiency, and provide transparency. According to Thomson Reuters’ 2025 Future of Professionals Report, lawyers expect to save 190 hours per year through AI tools — a potential US$20 billion productivity gain for the U.S. legal market.
This shift challenges firms to rethink traditional billing. With faster workflows, clients are asking for value-based pricing instead of hourly rates. Forward-looking firms are responding with models that align incentives and showcase measurable results. Those that adapt are positioned to deepen client trust and win more strategic, higher-value work.
AI also levels the playing field for smaller firms, enabling them to access advanced tools without heavy investment and to compete through agility, innovation, and creative pricing.
The real question is no longer whether to change, but whether firms will lead or stand on the sidelines as AI redefines what efficiency, value, and partnership mean in modern legal practice.
Source: Thomson Reuters
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