Extract from Mimi Lamarre’s article “AFAs Will Grow as Firms Increase Gen AI Usage, New Survey Finds”
A new survey found that Am Law 200 firms expect to see an increase in alternative fee arrangements or modified billing as a result of generative AI. Still, the rising technology will likely deliver a greater challenge to the billable hour model in five years, rather than in the immediate future.
The survey, entitled the Legal Pricing & Project Management report and conducted by the Legal Value Network and the Blickstein Group, surveyed law firm legal pricing and project management professionals at 69 firms in the Am Law 200. More than half of the respondents were at firms that employed over 750 attorneys and earned over $750 million in revenues annually. Nearly half of the respondents, meanwhile, held C-suite titles.
Just over 90% of the survey’s respondents said that they either strongly agree or agree with an expectation that firms will increase their use of alternative fee arrangements or modified billing as a result of the technology.
