Search results for hourly billing
AI & Enterprise
AI cuts billable hours, putting pressure on law firms\' hourly billing model
Artificial intelligence is shaking the hourly billing model that underpins many law firms in the UK and Ireland as lawyers use AI to handle more work with fewer resources. Firms report lower costs as AI takes over administrative tasks, while repeated work is increasingly automated. Industry figures say complex advice still needs human judgment, and AI hallucinations raise accountability risks. Firms are also rethinking junior training, hiring and how to use time saved by AI.
AI & Enterprise
AI upends consulting revenue model as outcome-based fees gain ground
Generative AI is changing how consultants work and putting long-standing billing systems under pressure, with clients increasingly demanding lower costs as working hours fall. As a result, outcome-based pricing is drawing attention as an alternative to hourly billing and fixed fees. Under this model, clients pay a base fee and tie the remaining compensation to agreed targets such as cost savings and profit improvements, though the approach carries risks.
AI & Enterprise
Anthropic general counsel says AI will upend hourly billing in legal industry
AI will undermine the legal industry’s traditional hourly billing model, Anthropic general counsel Jeff Blake (제프 블레이크) said. He said AI will replace repetitive legal work, making hourly billing less viable and pushing lawyers toward strategy and outcomes-focused services. Blake said the current system distorts incentives between law firms and clients. Executives at Liberty Mutual and IBM also said legal services should be valued by strategy and results, and new billing models are needed.