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If AI Finishes the Work Faster, Should Customers Pay Less?

Artificial intelligence is forcing law firms to reconsider a basic business question: what exactly are clients paying for? In an interview highlighted by Cooley on October 20, chief ｅxecutive Rachel Proffitt discussed how AI is changing legal services and the training of younger lawyers. Many law firms charge clients according to the hours spent on their work. However, faster technology puts pressure on this model. In September, Cooley launched an AI offering called GO Public to help companies prepare documents before selling shares to the public. The firm says it can produce an initial draft in minutes rather than days, while lawyers remain involved throughout the process. This creates a tension: greater efficiency could benefit clients while reducing the number of hours a firm can bill.

The answer may depend on whether customers value time, expertise or results. A client might expect a lower fee when software completes much of the preparation. A firm could argue that its judgement, responsibility and investment in technology still deserve payment. Charging a fixed price for a project is one possible alternative, although customers would still need a clear understanding of what that price covers. Training presents another challenge. If AI handles tasks that beginners once performed, how will junior employees develop the experience needed to check its work? Cooley is reconsidering how younger lawyers build their skills. The issue extends beyond law: whenever technology makes professional work faster, businesses must decide how to share the benefits and how to prepare the next generation of experts.

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Chat

Talk about these words from the article.

artificial intelligence / law firms / clients / legal services / charge / initial draft / efficiency / bill / expertise / fee / judgement / investment / fixed price / junior employees / benefits

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Discussion

1. Should customers pay less when AI helps someone finish a job faster? Why?

2. What are the advantages and disadvantages of charging by the hour?

3. When would you prefer to pay a fixed price for a service?

4. How should companies divide the benefits of AI between customers, employees and owners?

5. What information should a professional share with clients about their use of AI?

6. How can beginners gain experience if AI performs most routine tasks?

7. What kinds of work would you still want a person to check carefully?

8. How might AI change the way your own work is valued?