"There is a general concern among law firm management around this topic, but ultimately what it means for law firms' business models still feels like a pretty open question."
Sean Monahan, Senior Director, Strategy + Transformation at Harbor
There is a tension between corporate clients' expectations of some level of cost savings as their outside counsel invest in AI, and the reality that for many law firms AI has been a massive cost when it comes to buying the technology, training staff and implementing its use, Monahan said.
"They are hearing from clients, 'If you can do this faster, this should be reflected in our bills.' But firms are saying, 'We are putting a huge amount of time and money and energy into this, but we're barely able to pass along savings because of the huge up-front investment,'" he said.
This is an excerpt of an article, "Are Law Firms Losing Money On Generative AI?", originally published by Law360 Pulse.
- AI
- Cost & spend management
- Technology