The use of artificial intelligence (AI) technology is growing in popularity, and Minters boss tips ChatGPT as the tool that might eventually replace billable hour culture. This topic has been widely discussed in the legal realm as the billable hour has been described as “the tyranny of the billable hour” and many clients still tend to trust more familiar billing based on hours worked.
Kara Briggs, the managing partner at Minters, a leading Australian legal and consulting firm, believes that AI technology is what could finally break the billable hour culture. For many years, the billable hour system has been the standard for many law firms, charging an hourly rate – sometimes over $1200 per hour – and bill in six-minute increments. General counsel, with their influential powers, have the ability to help drive the change.
Briggs suggests replacing the billable hour with a value-based alternative and using AI-powered legal tools to demonstrate to clients these cost savings with no compromise of quality and no risk. She highlights the importance of specialists in the legal and consulting businesses who have a solid understanding of the clients’ business, industry, and the associated legal complexities. Lawyers are interested in focusing on complex problems and obtaining strategic advice, rather than doing tedious and menial tasks.
Gilbert + Tobin, another Australian law firm has teamed up with Minters to introduce AI bounties of $20,000 for “meritorious ideas”. They believe the advancement of AI will help bridge the gap between time spent and the value generated. To ensure quality, software licensing, data training and skilled users may be required.
With the continuous improvement of AI technology, it is hoped that Minters, along with other legal firms, will lead the way by offering clients an alternative to the billable hour while maintaining both quality services as well as cost savings.
