Despite The Whale, You Can See Legal AI ROI

· Source: Artificial Lawyer · Field: Legal & Regulatory — Legal Technology (LegalTech), Law Firm Business Strategy · Depth: Intermediate, medium

Summary

A survey conducted by Ari Kaplan for Legora addresses the challenge of demonstrating Return on Investment (ROI) for AI adoption within law firms. Based on 31 interviews, the findings indicate that AI significantly impacts business development and operational capacity. Specifically, 42% of firms reported winning new work by referencing AI, and 45% expanded existing client relationships. AI also increased capacity, with 55% of respondents taking on previously declined briefs, and 52% redeploying capacity to client interaction. Furthermore, 77% of firms cited AI capabilities when discussing pricing and value, and 39% found it easier to offer fixed-fee arrangements. The research suggests a shift from questioning AI's value to strategizing its use for competitive advantage, pricing, and service quality.

Key takeaway

For AI Product Managers and entrepreneurs targeting the legal sector, focus your value proposition beyond mere efficiency and cost savings. Law firms, particularly those serving demanding clients, are prioritizing AI's ability to deliver higher quality, faster service, and greater certainty. Emphasize how your AI solutions can enhance competitive positioning, enable new pricing models like fixed fees, and improve overall service delivery to align with their strategic goals.

Key insights

Law firms are leveraging AI beyond efficiency for competitive advantage, client acquisition, and service quality.

Principles

In practice

Topics

Best for: AI Product Manager, Entrepreneur, Legal Professional, Director of AI/ML, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by Artificial Lawyer.