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And that's a much harder problem to solve.
And that's a much harder problem to solve.
Firms use billable hours for bonuses, promotions, and performance reviews. It shows partners who's overworked, who's underutilized, and where to allocate resources. Remove it and you eliminate the primary metric driving firm economics and workforce management.
Firms use billable hours for bonuses, promotions, and performance reviews. It shows partners who's overworked, who's underutilized, and where to allocate resources. Remove it and you eliminate the primary metric driving firm economics and workforce management.
→ Gen AI completes tasks in minutes that took hours, fundamentally challenging time-based billing
→ Despite decades of criticism, 97% of firms still bill by the hour
→ Growing tension between traditional model and value-based pricing as profession faces transformation
→ Gen AI completes tasks in minutes that took hours, fundamentally challenging time-based billing
→ Despite decades of criticism, 97% of firms still bill by the hour
→ Growing tension between traditional model and value-based pricing as profession faces transformation
→ Scott Turow publishes "The Billable Hour Must Die" in ABA Journal
→ Evan Chesler (Cravath presiding partner) writes "Kill the Billable Hour" in Forbes
→ Peak criticism from both elite practitioners and clients demanding alternatives
→ Scott Turow publishes "The Billable Hour Must Die" in ABA Journal
→ Evan Chesler (Cravath presiding partner) writes "Kill the Billable Hour" in Forbes
→ Peak criticism from both elite practitioners and clients demanding alternatives
→ The American Lawyer publishes firm rankings by hourly rates, turning rates into status symbols
→ Firms begin requiring minimum annual billable hours (1,800-2,000+) tied to advancement
→ "Big-firm star system" and competitive era begins, hours requirements rise steadily
→ The American Lawyer publishes firm rankings by hourly rates, turning rates into status symbols
→ Firms begin requiring minimum annual billable hours (1,800-2,000+) tied to advancement
→ "Big-firm star system" and competitive era begins, hours requirements rise steadily
→ Hale and Dorr (now WilmerHale) becomes first major firm to fully implement 6-minute increment billing
→ Smith describes it as "fair, logical, transparent" and "especially pleasing to businessmen"
→ Hale and Dorr (now WilmerHale) becomes first major firm to fully implement 6-minute increment billing
→ Smith describes it as "fair, logical, transparent" and "especially pleasing to businessmen"
→ Reginald Heber Smith at Boston Legal Aid Society creates the first timesheet system
→ Developed with help from Harvard Business School (not IBM) to manage 2,000 cases on limited budget
→ Initially just an internal productivity metric, not yet used for billing clients
→ Reginald Heber Smith at Boston Legal Aid Society creates the first timesheet system
→ Developed with help from Harvard Business School (not IBM) to manage 2,000 cases on limited budget
→ Initially just an internal productivity metric, not yet used for billing clients
I'll be doing a deep dive into the rise of these high agency "legal-quants" in in my newsletter this Sunday.
Don't miss it: bestpracticeai.substack.com/
I'll be doing a deep dive into the rise of these high agency "legal-quants" in in my newsletter this Sunday.
Don't miss it: bestpracticeai.substack.com/
Even if it's imperfect.
If these functions can be whipped up in days, the moat in legal tech isn't the technology.
Even if it's imperfect.
If these functions can be whipped up in days, the moat in legal tech isn't the technology.
My takeaway:
The most valuable skill won't be technical knowledge or even legal expertise.
It'll be being a high agency individual.
My takeaway:
The most valuable skill won't be technical knowledge or even legal expertise.
It'll be being a high agency individual.
→ UCC-1 financial statement batch drafters
→ Tabular review functions
→ High Court case trackers
→ CMA decision trackers
→ Case chronology generators
→ UCC-1 financial statement batch drafters
→ Tabular review functions
→ High Court case trackers
→ CMA decision trackers
→ Case chronology generators
He even organized a hackathon in partnership with Manus AI, providing free credits for participants to build their own vibe coded products.
He even organized a hackathon in partnership with Manus AI, providing free credits for participants to build their own vibe coded products.
Lawyers, law students, and legal innovation specialists testing technology themselves.
Lawyers, law students, and legal innovation specialists testing technology themselves.
The post went viral within the legal industry.
But Jamie didn't stop there.
The post went viral within the legal industry.
But Jamie didn't stop there.
→ Where enterprise legal AI actually sits in the broader market.
Link in the comments: open.substack.com/pub/bestpra...
→ Where enterprise legal AI actually sits in the broader market.
Link in the comments: open.substack.com/pub/bestpra...
→ Whether European data privacy regulations create defensibility or just higher barriers to entry
→ Whether European data privacy regulations create defensibility or just higher barriers to entry
We discussed:
We discussed:
It's an interesting strategic choice, especially as we're seeing consolidation across legal tech.
It's an interesting strategic choice, especially as we're seeing consolidation across legal tech.
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Subscribe here: bestpracticeai.substack.com/
With lots of competition in the space, the winners will need to either:
• Build vertical-specific moats (M&A, employment, SaaS)
• Own the full contract lifecycle, not just review
• Integrate so deeply into workflows they become unreplaceable
With lots of competition in the space, the winners will need to either:
• Build vertical-specific moats (M&A, employment, SaaS)
• Own the full contract lifecycle, not just review
• Integrate so deeply into workflows they become unreplaceable