Why Clients Should Demand AI-Powered Lawyers or Walk Away

Many law firms still charge clients by the hour—often $400 or more—while relying on manual processes that could significantly improve with artificial intelligence. This raises a pressing question for anyone hiring legal services: Why should you pay more for slower, less efficient service?

Whether you’re working with a law firm for the first time or have an existing relationship, it’s time to ask a critical question: Does your law firm use AI to improve efficiency and outcomes? You might want to consider alternatives if the answer is no—and they still charge by the hour.

Here’s why: If a lawyer can review a contract or find a vital court decision in ten minutes using AI but instead takes ten hours and charges $400/hour, you’re stuck paying $4,000 for something that could have cost far less.

The Hourly Billing Problem

Hourly billing has long been the default in the legal profession, but it’s a model that often works against clients’ best interests. The slower an hourly-rate lawyer works, the more they earn. Tasks like contract review and legal research, which can now be completed in minutes with AI, still take hours when done manually.

Imagine hiring a contractor to build a deck. Would you accept someone who insists on using hand tools instead of power tools, even if it means doubling the cost and time? Of course not. But this happens when law firms resist adopting efficiency-enhancing tools like AI while continuing to bill by the hour.

The Flat-Fee Advantage

AI enables law firms to offer flat-fee billing, a game-changer for clients everywhere. Flat fees provide predictability and transparency, letting you know exactly what you’ll pay upfront. Firms that embrace AI can complete tasks faster while maintaining profitability, passing the cost savings on to clients.

Why can’t law firms charge a flat fee for each stage of litigation, for example, or a set rate per day in court? Firms clinging to hourly billing often lack the incentive to innovate, leaving clients to foot the bill for inefficiency.

At Caseway, the legal technology platform I run, we’ve noticed that flat-fee lawyers, in-house counsel, and government lawyers are far more open to adopting artificial intelligence software. On the other hand, hourly billing firms are slower to embrace this change—and their clients pay the price.

A Call to Action for Clients Everywhere

If you’re hiring a law firm, don’t hesitate to ask tough questions about how they use technology. Specifically, ask:

• Do you use artificial intelligence to speed up legal processes?
• How does your use of AI benefit clients in terms of cost and efficiency?
• Do you offer flat-fee billing for tasks enhanced by artificial intelligence?

If the answers are unsatisfactory, it might be time to explore other options. A growing number of forward-thinking law firms are leveraging innovation to provide better value.

The legal profession is at a turning point. As a client, you have the power to demand better service. You can save tens of thousands of dollars and countless hours by asking the right questions. The choice is yours—choose wisely.

Author: Alistair Vigier is the CEO of Caseway, an AI-powered platform transforming legal research and contract review.