Big Law Firms like McDermott Will & Emery Abandon Billable Hour Model with AI
Published on 6.2.25
The integration of artificial intelligence (AI) in various industries is transforming the job market and legal landscape. In the legal sector, big law firms are adopting AI tools to move away from the traditional billable hour model, which has been a subject of criticism for years.
McDermott Will & Emery partner Jason D. Kreiser notes that clients have been pushing for an end to the billable hour model, citing its limitations in providing clear cost estimates. In response, law firms are turning to flat fees as a more client-friendly alternative. Hilary Gerzhoy, a partner at HWG LLC, sees this shift as a way for firms to stay profitable while incorporating AI technology.
With AI-assisted research and document review, lawyers can focus on high-value tasks that require human expertise, such as strategy and analysis. This shift has significant implications for the job market, with some roles becoming redundant while others emerge.