The practice of law is unique in that we mostly look to the past to determine how to solve disputes today. We rely on statutes that may have been on the books for many years, as well as case decisions that are sometimes decades old. So, given our reliance on the past, it is not surprising that the law has always been somewhat resistant to change and innovation. Yet, in my more than four decades of practice, there have been some seismic shifts in the way that we practice law, causing the practice to lurch forward. Most of these changes, not surprisingly, have been due to technological innovations. I recall the introduction of the fax machine which changed the way we would send correspondence. At about the same time, we developed word processing capabilities, which radically changed how we could work on, draft, and redraft documents. Later on, of course, the introduction of the computer and e-mail forever changed the way that we practice law. And most recently, due to the Covid pandemic, Zoom technology also significantly affected how and when we would show up (or not show up) for meetings, depositions or court appearances.
And now of course, we are in the midst of an artificial intelligence (“AI”) revolution. It is my belief that law firms that properly embrace and effectively utilize this technology will thrive, while law firms that are resistant to it will suffer and ultimately close shop. Those firms that traditionally do defense work and bill by the hour will have to become more efficient and transparent with AI. Tasks that typically were performed by lawyers, or perhaps even paralegals, and took many hours to complete, can now be done through AI in a matter of hours or perhaps even minutes. A client is not going to want to pay high rates of lawyers to review documents for hours on end, when the push of a button can effectively do the same job in a matter of minutes. Law firms will have to restructure their fee agreements, perhaps go to task based or flat fee billing, and incorporate flat fee charges for AI legal work, just as firms do now for things such as online research.
On the contingency fee side, those firms that effectively employ AI can be more efficient, spend less time on various matters, and thereby allow themselves to take on more cases. Obviously, in a contingency fee-based practice, the more cases that can be taken on and effectively prosecuted, the better chance there is of maximizing recovery.
AI’s revolutionary impact on the practice of law is not a matter of if, but a matter of when. And the “when” might already be upon us. How will your firm react to AI? How will your firm employ AI to its benefits? I would love to chat with you about what you are doing in this rapidly evolving environment.
