Source: Verdict
Almost every industry has undergone huge technological transformation in recent years, to the extent that some even say investment banks are now tech companies. In a similar vein, the law firm of the future will be an AI company—one that doesn’t just use AI for efficiency but employs AI to entirely transform legal service delivery and implement radical business model changes.
The implications for law firms are profound. The legal industry, often resistant to change, must adapt to this technological revolution or risk obsolescence. Generative AI (GenAI) is already demonstrating its potential to draft contracts, analyse case law, and even predict litigation outcomes with remarkable accuracy. However, the adoption of AI is not merely about incorporating tools to increase efficiency. It requires a rethinking of how legal services are structured, priced, and delivered.
Given these hurdles, my advice to large firms is to think beyond procurement. Instead of purchasing legal AI solutions piecemeal, they should consider leveraging their balance sheets to acquire legal AI companies outright. By establishing these entities as separate departments or even standalone subsidiaries, firms can foster environments conducive to innovation. These AI-driven entities would benefit from access to top legal talent, trusted brand reputations, and long-standing knowledge bases, while also maintaining the agility needed to disrupt traditional business models.
The integration of AI into law firms is not just a technological shift but a catalyst for reimagining the entire business model of legal services. Traditional billing methods, such as the billable hour, are ill-suited to the efficiencies AI enables. Instead, we are likely to see a shift toward value-based pricing, where firms charge based on outcomes rather than time spent. This model aligns incentives between lawyers and clients, fostering trust and long-term partnerships.
Moreover, AI can facilitate new ways of delivering legal services. For example, subscription-based models could allow clients to access ongoing legal support at a predictable cost. Alternatively, firms might offer tiered services, with AI handling routine matters and human lawyers focusing on complex or high-stakes issues. These innovations can democratise access to legal support, making high-quality services more affordable and accessible.’
Read the full article: https://www.verdict.co.uk/opinion-genie-ais-ceo-on-why-the-law-firm-of-the-future-will-be-an-ai-company/
