On this dialog, I’m joined by “The Subscription Lawyer,” Mathew Kerbis, to debate how AI is essentially altering the facility dynamics between Biglaw companies and their subtle in-house purchasers.
This isn’t about effectivity beneficial properties it’s about accountability, transparency, and the existential menace going through conventional billable hour fashions.
We discover how purpose-built AI instruments are empowering in-house authorized groups to benchmark work, query billing practices, and why this creates an unprecedented problem for giant regulation companies nonetheless working on legacy enterprise fashions.
In-Home Groups Will Expose Biglaw’s Billing Downside
Mathew explains why subtle in-house authorized groups pose the largest menace to conventional Biglaw billing. These groups are adopting purpose-built authorized AI instruments and can begin asking powerful questions. In contrast to particular person purchasers who might not perceive the nuance, in-house counsel are subtle sufficient to benchmark work and acknowledge once they’re being overcharged.
Function-Constructed AI vs. Common AI: The Bonfire vs. Blowtorch Analogy
Mathew shares a robust analogy from Daza Greenwood in regards to the distinction between normal AI instruments (ChatGPT, Claude, Gemini) and purpose-built authorized AI.
Common AI is sort of a huge bonfire—extremely highly effective and versatile, however not specialised. Function-built authorized AI is like taking that fireside and harnessing it right into a blowtorch — now you can weld with precision.
The Flat Price Lure: Why It Received’t Save Biglaw
Steve and Mathew deal with the query many regulation companies are contemplating: Can they escape the billable hour drawback by switching to flat charges? The reply is not any.
Even with a $100,000 flat charge, subtle purchasers can calculate that if the work solely took 2 hours with AI help, they’re nonetheless massively overpaying.
This reveals the “underscoping and overscoping drawback” — attorneys wrestle to precisely worth fixed-fee work, which is precisely why flat charges by no means changed the billable hour within the first place.
The actual challenge isn’t the billing mannequin; it’s that AI has made the precise value of authorized work clear, and no pricing construction can conceal that actuality.
Listen to the latest episode of “Be That Lawyer” here.
Steve Fretzin is a bestselling creator, host of the “Be That Lawyer” podcast, and enterprise growth coach solely for attorneys. Steve has dedicated his profession to serving to attorneys study key progress expertise not at present taught in regulation faculty. His purchasers quickly turn out to be prime rainmakers and credit score Steve’s program and training for his or her success. He could be reached immediately by electronic mail at [email protected]. Or you may simply discover him on his web site at www.fretzin.com or LinkedIn at https://www.linkedin.com/in/stevefretzin.
