The “AI efficiency paradox” lies at the heart of this issue. As AI becomes better at automating legal tasks, it becomes less justifiable to bill clients based on time spent.
Generative AI can now draft contracts, conduct legal research, analyse documents and even generate entire memos or briefs significantly faster than a human lawyer. If an AI tool can produce a first draft of a 20-page contract in minutes, how can a firm justify billing dozens of associate hours for that same task?
