AI Rush at Legal Tech Expo Raises Questions Over Future of Billable Hours

Artificial intelligence dominated conversations at the LegalWeek conference in New York this week, where the future of the legal profession’s traditional billable hour model became one of the most pressing questions at the annual technology gathering.

Lawyers and industry experts debated whether the efficiency gains promised by AI could make clients reluctant to continue paying hundreds or even thousands of dollars per hour for legal work. Others questioned whether firms might charge higher rates while shifting towards different types of services, or how they would absorb the rising cost of advanced AI tools that many clients now expect them to use.

Martha Louks, technology director at law firm McDermott Will & Schulte, said during a panel discussion on the technology’s impact that the financial implications of adopting AI systems were significant. She noted that running such tools requires extensive processing of data, commonly billed in “tokens,” the industry term for the small units of text that AI systems analyse.

Around 7,000 lawyers, technology executives, computer scientists and marketing professionals attended the conference, filling the exhibition floor at the Javits Center. Companies demonstrated AI platforms capable of searching massive databases of legal documents within seconds, drafting and revising contracts, analysing industry trends affecting clients and even suggesting potential marketing strategies for law firms.

Among the companies drawing attention was Swedish startup Legora, which announced during the event that it had raised $550 million to expand in the United States, pushing its valuation to $5.5 billion. Exhibitors distributed promotional items ranging from plush toys and golf balls to sunglasses branded with the names of legal technology platforms such as Billables.AI and Litify. Reuters’ parent company Thomson Reuters, which operates the legal AI platform CoCounsel, was also among the participants.

In a conference room above the exhibition area, Oliver Roberts, who leads an AI practice group at law firm Holtzman Vogel, told attendees that artificial intelligence could eventually replace lawyers entirely, a comment that prompted uneasy laughter from the audience.

Legal AI consultant Oz Benamram predicted during another session that within three years companies might rely on AI to perform half of the work they currently outsource to law firms. He added that businesses were increasingly focused on speed and efficiency, though they would still be willing to pay extremely high fees for human lawyers whose judgement and strategic insight remain difficult for AI systems to replicate.

Other speakers suggested that as automation accelerates routine legal work, firms could redirect their time and expertise toward more specialised advisory services requiring deeper human involvement.

Interest in the technology was so strong that some sessions reached capacity. Attendees were turned away from several workshops, including one organised by legal and compliance services company Epiq that taught lawyers how to build their own AI “agents.” Many participants experimented with creating bots capable of analysing contracts or scanning court websites, while others struggled simply to log in to the systems.

A separate discussion on leadership strategies in the era of AI quickly filled to standing-room capacity before organisers closed the doors. Dozens of people remained outside the room, hoping to attend presentations by executives from major companies including Microsoft, GSK, HSBC and Barclays.

Several participants acknowledged the pressure of trying to keep up with rapidly evolving technology or to introduce new AI-driven services before competitors. Despite the uncertainty, few suggested that the pace of development was slowing or that the enthusiasm surrounding AI had been exaggerated.

Susan Wortzman, a partner at Canadian law firm McCarthy Tétrault, said the profession’s attitude towards generative AI had shifted dramatically in just two years. Previously, she said, many law firms reassured clients that they were not using the technology in their legal work. Today, the situation has reversed, with clients increasingly insisting that firms incorporate AI tools into their services.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.