AI adoption prompts debate over legal billing and productivity

The legal industry is facing shifting expectations regarding billing and productivity as artificial intelligence becomes more integrated into law firm workflows. Amitabh Lal Das, General Counsel for Hyundai Motor India, argued that law firms should reduce the number of billable hours charged to clients when AI enables tasks like research to be completed significantly faster. Das noted that companies should not pay for the same amount of man-hours when technology improves efficiency, suggesting that clients may use these advancements to negotiate better legal fees.

While AI adoption is high for specific tasks, challenges remain regarding true productivity gains. A survey of lawyers in large firms indicates that while approximately 80% use AI for legal research and two-thirds use it for document review and drafting, only 30% report that AI is fully embedded in their team’s strategy and operations. Experts suggest that speed alone does not equate to productivity; if an AI-generated draft requires extensive time to verify for accuracy, accountability, and source reliability, the net efficiency gain may be minimal.