What will AI mean for the billable hour?

Plus: How tech is making election campaigns more efficient

Raise The Bar

Oct 31, 2024 • 4 min read

A recent survey by Wolters Kluwer revealed in-house legal departments and law firms differ on the impact of AI on the billable hour. And another one, this time on workplace mental health, found that only about a third of young legal professionals feel their work has a positive effect on mental health.

In today's newsletter:

Differing opinions on impact of AI on billable hours
The impact of legal work on mental health
How one lawyer found her niche
Lawyers must remain responsive to clients, even when remote
AI's potential to enhance political campaigns

What will AI mean for the billable hour?

In its 2024 Future Ready Lawyer Survey, Wolters Kluwer found that 67% of legal departments and 55% of law firms believe AI will affect the billable hour. According to Wolters Kluwer Vice President and General Manager of Legal Markets Ken Crutchfield, this discrepancy between firm and corporate legal departments may indicate that clients believe AI will increase efficiency. The survey, which included more than 700 legal professionals in the U.S. and nine other countries, revealed that more than 70% of respondents believe they will need to attend generative AI training in the next year, while many see integrating AI as a challenge. (Law.com)

Work not a boon to mental health, legal professionals say

The State of Wellbeing in Law 2024, a new survey from workplace mental health platform Unmind, found that 36% of young legal professionals (18 to 34) said that work had a positive effect on their mental health. The survey, which looked at responses from nearly 4,500 respondents in nine firms, also found differences between mental health for male and female respondents, with men more likely to report a positive impact on mental health. The percentage also increased for older respondents. In the foreword to the study, the organization’s CEO and co-founder Nick Taylor notes, “Box-ticking approaches to well-being aren’t enough, and solely placing the responsibility on employees to manage their mental health is neither sustainable nor effective. Successful, lasting change requires initiatives that reach every organizational level, starting with senior leadership.” (ABA Journal)

Niche down to build up

As a personal injury attorney starting her own practice, Allyson Kitchel faced the challenge of differentiating herself. An avid cyclist, she found her sweet spot advertising to cyclists in the Washington, D..C area. Once she found her value proposition, she was able to build a practice representing cyclists and pedestrians injured by motor vehicles. “What talking about bikes did was let people know that I handled bike cases, but it also let them know I handled car wrecks also,” Kitchel says on the Lawyerist Podcast. “Just because I was talking about this one ideal path or this one client for me, it didn’t exclude everything else.” (Lawyerist Podcast)

Responsiveness is crucial, GCs and firm leaders agree

With billable rates continuing to rise, a group of corporate general counsel and law firm executives recommend outside counsel focus on personal client service. “I would urge all firms — if they haven’t already — to begin coordinated client programs to keep close in touch with a firm’s top clients,” stated one panelist on the state of the legal market during Thomson Reuters Institute’s 23rd Annual Law Firm COO & CFO Forum. While firm leaders noted that associates are attracted to firms committed to innovation and flexibility, corporate lawyers expressed some frustration with not being able to reach their outside counsel. (Thomson Reuters)

Tech for democracy

The negative effect of AI on this election cycle has received a lot of attention, and rightfully so, with deepfakes and other misinformation creating confusion among voters. But John Hewitt Jones, writing for Bloomberg Law, points to a potential upside. A number of platforms are now available to make campaigns more efficient, potentially reducing the barrier to entry for people interested in running for elected office. While questions remain, Hewitt Jones writes, “if AI helps get us a broader slate of candidates with clearer messages and expanded coalitions of donors and supporters, that’s not bad for democracy.” (Bloomberg Law)

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Every Thursday, you'll hear from our team about the most pressing issues facing legal practices today. We'll also try to include some quick-hit reads that touch on interesting cases and precedents being set worldwide.

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Written by Suzi Morales. Edited by Katie Parsons.