"As the year winds down, the legal profession is flooded with retrospectives: the growing AI adoption rate by solos and smalls (now around 70%), ways that AI is leveling the playing field between large and small firms (including on the hallucination front where large firms and solos are equal offenders) and the familiar observation noting the shift from chat-based tools to agentic systems."
"In AI era, all of that may change. And in fact, some would argue that it has to change since with AI cutting down on the time required for legal tasks, billable revenue is bound to decline. But AI can also power new business models, or revive traditional ones. Below are five law firm business models for the AI age that can help solo and small law firms diversify their offerings."
"The first model may seem counterintuitive in an AI-driven era: Artisanal Legal. This is the deliberate embrace of high-touch, bespoke legal services grounded in judgment, strategy, and human insight - augmented, but not replaced, by AI."
Solo and small law firms now report roughly 70% AI adoption, with AI narrowing advantages between large and small firms and driving a shift from chat-based tools to agentic systems. Traditional law firm models have centered on selling time in billable increments. Flat fees and subscription offerings emerged but did not achieve widespread traction. AI reduces the time required for many legal tasks, creating pressure on billable revenue while enabling alternative value propositions. AI can power new business models or revive legacy approaches. Five specific law firm business models for the AI era offer pathways for solos and small firms to diversify services and capture value.
Read at Above the Law
Unable to calculate read time
Collection
[
|
...
]