Sonderegger said the industry has been talking about the eventual elimination of billable hours for as long as he has been working, but things are changing. He believes hourly wages have increased “very significantly” in the U.S. market, but “this is probably not sustainable.” There are also moves to require corporate advisors to work in-house.
In an ideal world, he said, outside lawyers would be able to leverage AI to do better work in less time, charge less, and earn more. But the financial structure doesn’t support that ideal, he said. “The less time we spend, the less money we charge.”
There is some movement toward fixed fees, but not everything lends itself to that arrangement, such as open-ended contracts or some types of litigation, he said. Additionally, private equity is beginning to enter the small and medium-sized legal market in the form of managed services organizations (MSOs), which is likely to change the incentive structure of traditional law firms.
“I think different business models could emerge,” Sonderegger said.
Winkler also expects changes in law firm business models. “I truly believe that we’re going to see a significant impact on billable hours over the next two, three, four-plus years,” he said.
Technology fees are a new revenue option. Winkler said he has heard that some companies have already imposed such charges. He believes this is a viable option, whether as a line item or as part of an alternative rate arrangement.
Vlemincx believes AI is the catalyst for long-needed changes to the billable hour model. But she doesn’t think technology fees fit well with existing business models.
“What if we just do what we’ve always done and add a technology fee? I don’t think clients would buy that,” she says.
From transaction services to trusted advisors
Vlemincx foresees redesigning the role of lawyers into trusted advisors who provide not only legal services but also strategic advice.
“It’s not enough to just focus on legal outcomes, because AI is going to take over a lot of that,” she said.
Similarly, Remi envisions a new intersection of business understanding and legal advice to advise clients on future risks “in an increasingly risky world.”
“I think this way we can move from simple bill reduction to something more valuable,” Remi said.
AI and the “efficiency trap”
Turning to legal practices, the survey found that nearly half (51%) believe that AI will accelerate outsourcing of routine tasks to alternative legal service providers. The perceived impact of AI varies by task, from 53% in legal research and analysis to 24% in discovery.
60% of respondents said AI saves them between 6% and 20% of their time per week.
Vlemincx said there is an “efficiency trap” where results are measured by speed rather than value.
“And that’s a big trap, because the question is, are we doing the right thing?” she said. “We need to shift further from just seeking quick results to better results, better decisions, and better strategies.”
Sonderegger agreed that AI could help shift the focus from speed to quality.
“It also potentially allows you to create better deliverables,” he said. “I have a closer contract. I can work deeper and more seriously on the contract. I can be more prepared for crosses.”
Vlemincx emphasized that AI will amplify outcomes, including the good, the bad, and the ugly.
“The biggest risk is not being slow,” she says. “It’s going fast, going the wrong way, doing the wrong thing, fast. That’s the biggest threat.”
She suggested that in realigning work, companies need to start with what their clients want.
“If you start by asking your clients what they need, you will come up with a variety of solutions,” she said.
AI training
AI is clearly here to stay. 79% of legal departments and 72% of law firms said they expect investment in AI to increase or remain stable. Additionally, 92% of respondents said they use at least one AI tool.
However, 39% of respondents cited lack of training and resources as a barrier to using AI tools. So what should you focus on in your AI training?
According to Sonderegger, organizations need to clearly communicate the goals and boundaries of their AI tools to avoid unsafe uses that could lead to client data leaks or relinquishment of privileges.
“The reality is that people are going to use these tools,” Sonderegger said. “If we don’t do that, they’re going to find workarounds that may increase the risk.”
At the same time, Breminks said an over-awareness of risk can paralyze lawyers. Lawyers will need to develop AI skills to make informed decisions depending on the situation.
“This isn’t just about ‘Be careful when using AI,’ it’s about actually building the skills that allow people to confidently make the right decisions for their own situations,” she said. “The key is to trust your ability to evaluate tools: which tools to use, when to use them, how to use them, and how to properly evaluate what they process and produce.”
Lemmi agreed that training should explain how to avoid or reduce risks. He added that AI training should be customized to specific roles.
“There’s a difference between a medical practitioner and an assistant or a librarian,” she says. “Training needs to be based on real-world use cases and closely aligned with the workflows people actually follow.”
Winkler agreed that training should focus on real-world applications.
“We are focused on identifying real-world training and education opportunities that specifically delve into the AI tools currently being used in litigation,” Winkler said.
adapt and collaborate
Beyond specific AI training, Vlemincx emphasized that organizations need to move into a “continuous improvement loop.”
“We treat training like it’s job security, but it’s not,” she says. “AI is changing faster than we can retrain for the next program, so we need to constantly reskill.”
He added that collaboration will become increasingly important as AI adoption increases.
Sonderegger agreed that cooperation is key.
“I think it moves from individuals to ecosystems, right?” he said. “It goes across organizations, companies, clients, technologies, and vendors. It’s a collective responsibility.”
2026 Future Ready Lawyer Webinar Series
- Extend AI across your organization
- Competing for trust in an AI-driven world
- A new architecture for legal work: People, processes, and AI
- Companies leading the world through accelerating AI adoption
- Strategic governance and risk mitigation for professionals
- How do we train future lawyers?
- The future of international law
Click to access:
