Gen AI Won't Kill the $2,500 Hour, But Probably Will Dramatically Cut Number of Them Needed

 The Wall Street Journal discussion of the up-to-$2,500 hour and more has set off plenty of buzz.

 Following the article there are, so far, more than 400 comments. 

In addition, the posting about it on Reddit Big Law has, so far, generated:

88,000 page views

107 comments

68 shares.

Meanwhile, what everyone in the legal-sector loop might be wondering is this: How much will generative AI upset these billing days of paradise for the top large law firms able to charge that magical $2,500 and more number? Those law firms include Watchell, Kirkland & Ellis, Davis Polk, Simpson and Paul Weiss.

Well, there has been fresh data on the projected role of Gen AI. Bloomberg Law reports:

"Fifty-eight percent of legal departments expect to rely less on outside service providers because of Gen AI, according to a new report by the Association of Corporate Counsel and Everlaw."

That is 25% more than predicted that last year. Over 25% already document savings, though only 23% actually are integrating Gen AI into operations.

However, for law firms Gen AI might not mutate into a Black Swan, that is an unpredictable development that has unimagined impacts.

There, for instance, will always be those high-stakes legal actions which general counsel will not risk assigning to any law firm which doesn't have a proven track record for achieving the outcomes needed. That means Gen AI will not kill off the $2,500 hour per se. 

But what Gen AI will be able to process in-house and what will be part of the outside law firm's mandated application of Gen AI in case management will probably significantly reduce the number of those $2,500 hours. 

As many know, AI is already being implemented in the first pass of document review. That is eliminating many of the human moving parts. In law firms hands-on document review is usually the task of junior lawyers. Right now the lateral market for lawyers doing those low-value tasks is lousy. That could be a sign of Gen AI times. 

Paul Weiss provides a provocative podcast "Waking Up with AI." It poses the questions we are pondering. It doesn't have the hubris to wrap that up with answers. The uncertainty embedded in the potential of this technology is profound. 

Life is hard. Business is even more difficult these days. Get answers – and relief. Jane Genova is a results-driven intuitive coach, tarot reader and content-creator related to careers. Complimentary consultation (please text/phone 203-468-8579 or email janegenova374@gmail.com)