Linked – Time Is A Management Tool, Not A Pricing Tool
Don’t kid yourself. This is the situation for many law firms right now, and it’s the struggle we’re all going to face in a world with AI.
And this goes to the heart of legal tech’s number one challenge: time vs efficiency. I.e. technology fundamentally does one thing, it creates efficiencies relative to the desired goal. Yet, legal work is priced mostly by time. QED, the two forces, one economic, one technological, are working against each other.
It’s been an issue before, but firms have always been able to work around the edges, limiting the impact those efficiencies had on their overall billable hours. This feels different. The entire point of AI tools is to create significant efficiencies across the business world. Not using them will end many client relationships. They won’t accept that level of inefficiency. On the other hand, a firm investing in AI technology does not get a return on investment if their revenue method is hours worked.
That’s a problem—one that has been coming for a long time. I agree that it’s time for firms of all kinds, law, consulting, etc., to figure out how to charge for their work differently. Read more at the link to learn about valuing work and the need for a transparent marketplace.
https://www.artificiallawyer.com/2024/04/30/time-is-a-management-tool-not-a-pricing-tool/
