The End Is Nigh—Or Is It? Experts Debate Law Firm Rate Hikes, AI's Impact and Adaptability
Law firm rates have been rising for years, with most firms planning further increases despite economic uncertainty and inflation. However, clients are growing resistant to these hikes, and the use of AI is expected to shift how legal services are delivered, potentially reducing demand for junior associate work. Experts like Toby Brown and Marcie Borgal Shunk highlight differing views on the sustainability of rate increases, with some seeing cracks in the current model as law firms balance profitability with adapting to evolving client needs and technological advances.
Building your legal practice’s AI future: The data and other key considerations
This entry emphasizes the growing importance of data in modern legal operations. It discusses how law firms can leverage data analytics to improve decision-making, efficiency, and client service. The article covers key considerations such as data privacy, ethical obligations, and how to effectively manage and interpret vast amounts of information. It also highlights the role of emerging technologies like artificial intelligence (AI) in handling data more efficiently, while advising firms to approach data management with careful planning and strategic implementation to maximize its potential.
Building Your Legal Practice’s AI Future: Understanding the actual technologies
The legal industry is on the brink of transformation as AI technologies become increasingly prevalent. In this insightful article from Thomson Reuters, experts discuss the potential of AI to revolutionize legal practices by automating routine tasks, improving efficiency, and enhancing decision-making processes. The piece explores the importance of integrating AI thoughtfully into legal workflows to maximize benefits while mitigating risks. As AI continues to evolve, law firms must adapt by embracing these technologies and rethinking traditional practices. For legal professionals eager to stay ahead of the curve, this article offers valuable perspectives on navigating the AI-driven future of the legal industry.
Building Your Legal Practice’s AI Future: Beginning with Strategy and People
In our latest blog post, we explore the implications of Generative AI on law firm profitability, focusing on how AI-driven efficiency may challenge traditional billing models. Toby Brown dives into the complexities of AI’s impact on non-partner hours and leverage, revealing how AI could reduce the profitability of tasks traditionally handled by associates. The analysis highlights the importance of adapting business models and leverage strategies to mitigate potential financial drawbacks as AI technology becomes more integrated into legal practice. If you're concerned about how AI might affect your firm’s bottom line, this insightful piece is a must-read.
Exploring the Subscription-Based Legal Services Model
In a recent episode of The Geek in Review, Toby Brown, a veteran in legal pricing, co-hosts a discussion on the evolution of legal billing, focusing on the shift from traditional billable hours to innovative subscription-based models. Toby provides valuable insights into how law firms are slowly adopting alternative fee arrangements despite the industry's longstanding reliance on billable hours. The conversation highlights how smaller firms, like those of the featured guests Mathew Kerbis and Jack Shelton, are successfully implementing subscription models, offering clients predictable costs and transparency. Toby also emphasizes the challenges big law firms face in adopting these models due to entrenched billing practices and client expectations. This episode is a must-listen for anyone interested in the future of legal billing and how firms can adapt to meet client demands more effectively.
Profitability in Law Firms: Insight and Analysis
Profitability – on the face of it – should be simple enough to determine. But once you start to lift the lid, there is much more than meets the eye. Profitability in Law Firms: Insight and Analysis provides practical and proven strategies for law firm leaders and managers who want to take their firms to the next level of performance and profitability.
How can they increase their profitability and efficiency without compromising their quality and reputation? How can they leverage the power of technology, data, and innovation to create value for their clients and themselves? Law firms are facing unprecedented challenges in the current financial climate and therefore need profitability strategies to survive and thrive in a competitive and changing market.
AI-Pocalypse
Curious about how AI might impact the legal industry? In our latest blog post, we explore the potential "AI-Pocalypse" that could disrupt traditional law firm models. From reduced billable hours to shifts in leverage, find out how Generative AI could challenge profitability and what steps firms should take to adapt. Don't miss our insights on how to navigate these changes and stay ahead of the curve.
Measuring Against Nothing
Are you leveraging your non-partner hours effectively? Our latest blog post dives into the often-overlooked costs of poor leverage, especially in the age of Generative AI. Discover how AI could unintentionally reduce profitability by displacing the most valuable work, and learn strategies to improve your firm’s leverage before it’s too late. This is a must-read for anyone looking to future-proof their law firm’s business model.
Rolling Out LPM Software at Akin Gump
In this interview with Bloomberg Law, Toby Brown, Director of Strategic Pricing and Analytics at Akin Gump, discusses his career trajectory and current role in developing pricing strategies and legal project management at the firm. Initially focused on pricing, Toby's role has evolved to encompass broader practice management, including legal project management (LPM) and practice reengineering. He explains the challenges of integrating traditional project management into legal practices without disrupting the way lawyers work.
Toby shares insights on a pilot program using Lean for Legal, a project management software aimed at improving fixed-fee work within a transactional practice group. He highlights two key success factors: leadership-driven initiatives and client-demanded project management. Toby also discusses the importance of managing budgets effectively and the evolving nature of pricing functions within law firms. Looking ahead, he envisions further reengineering of legal practices over the next five years, aiming to embed these changes into Akin Gump's service delivery model.