My Two Cents: What should lawyers learn as companies are finding themselves replaced by ChatGPT and other AI products?

What is the right balance between lawyers and AI?

Several months ago, Chegg, a leading provider of study materials for students, experienced a significant drop in stock prices due to the emergence of ChatGPT, which has been impacting several industries. The legal sector has not been exempt from this disruption. Articles have highlighted how AI could potentially replace the roles of junior associates and manage tasks typically assigned to lawyers. A significant shift driven by AI in the legal field is the challenge to the traditional billable hour. With tools like Casetext Co-Counsel, tasks that took hours can now be accomplished in minutes, making it hard to justify billing clients for extended periods. The same applies to other lawyerly duties like drafting discovery requests or preparing for depositions. As clients become more aware of these technological efficiencies, there will be a push towards flat fees instead of the billable hour model. While AI won't eliminate lawyers, it might render the billable hour model outdated, marking a forward step in the legal industry.

Will AI outpace the need for lawyers?

Either way as I and others have commented before on my blog, I don't think AI will replace lawyers. But those who don't incorporate AI will be replaced by those who do.

What do you think?

MTC