Source: LegalFutures
The adoption of artificial intelligence (AI) among lawyers is accelerating rapidly, but its impact on traditional fee structures remains uncertain. According to a recent LexisNexis report titled Fast Law: Why Speed is the Priority for Lawyers Using AI, four out of five lawyers are currently using or planning to use AI tools. This marks a significant shift, with the number of lawyers utilising generative AI quadrupling in just over a year—from 11% in July 2023 to 41% by September 2024.
The report reveals that the primary benefits of AI adoption include increased speed in delivering work, with 70% of lawyers citing this as a key advantage, followed by improved client service (54%) and a competitive edge (53%). However, despite AI’s potential to enhance efficiency, its impact on pricing structures is still up for debate. While 39% of private practice lawyers expect to adjust their billing practices due to AI, only 17% believe AI will lead to the end of the billable hour. The majority remain uncertain about whether AI will fundamentally alter this long-established pricing model.
The shift is particularly notable within in-house legal teams, where AI adoption has surged from 47% to 74% this year. However, challenges remain. Concerns about the accuracy of public AI platforms and over-reliance on AI are growing, with many lawyers emphasising the importance of maintaining the “lawyer in the loop” principle to ensure that human oversight remains central to legal work.
Read more: LegalFutures
