What are the consequences of continuing to ignore AI as a lawyer? (Part 2)

I had an excellent conversation with Lauren Rownd recently for the AllRize Rule of Law Podcast, and I’m excited to share that my episode is now live! Lauren and I talk about how law firms can approach getting started with AI. You can listen here. 

Issue 35 

Two weeks ago this newsletter explored some of the potential consequences for lawyers who do not engage with AI, ranging from failing to meet your professional responsibilities to missed client needs. If you missed that issue, you can catch up here. This issue of the newsletter is part 2, with some additional potential consequences for lawyers in private practice to consider. 

You May Charge a Client an Unreasonable Fee 

Lawyers in private practice who have not yet developed AI competency may not realize that there may be circumstances when failing to utilize AI for legal work could constitute charging a client an unreasonable fee under ABA Model Rule 1.5. Many factors go into a determination of whether a fee is reasonable under Model Rule 1.5, including but not limited to the time, skill, and labor required, as well as the fee customarily charged for similar services.[i] Additionally, the ABA’s Formal Opinion 512, issued in 2024, notes that Model Rule 1.5 and market forces may induce lawyers to adopt more efficient technology solutions.[ii] If you do not develop AI competency, you will not be in a position to continue to effectively evaluate whether you are charging reasonable fees for your services.   

You May be Left Behind by Your Tech-Forward Competitors 

Additionally, if you are in private practice and you have not developed your AI competency, you may be underestimating the chances that your competitors will leverage AI to offer services that are enhanced, less expensive, or for a fixed fee. As an example, in 2024, a Bloomberg Law columnist detailed how one law firm has utilized AI to create a competitive advantage by transforming a service traditionally billed hourly into a competitively priced fixed fee service for clients.[iii] If you haven’t taken time to understand AI’s capabilities and applications for lawyers, then you haven’t fully considered how you might leverage AI as a competitive advantage in your practice, or how your competitors might be using AI to enhance their services and attract your prospective clients.  

Proactively Develop AI Competency to Reduce Risk and Evaluate Opportunities 

All lawyers can benefit from proactively developing AI competency. Even lawyers who remain opposed to using AI in legal practice need to develop AI competency so they can continue to meet their professional responsibilities. And lawyers who are not opposed to using AI can reduce their risk of an AI mishap and maximize the benefits of using AI when they take the time to develop AI competency first. 

If you have a friend or colleague who might find value in this issue of the newsletter, I would really appreciate it if you shared it with them. 

Thanks for being here. 

Jennifer Ballard 

Good Journey Consulting  

P.S. You can learn more about how you can develop your AI competency and AI strategy more quickly with A Lawyer’s Practical Guide to AI here. 

[i] Model Rules of Pro. Conduct r. 1.5. 

[ii] ABA, Formal Op. 512, 5, n. 23, (2024), https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf. 

[iii] Roy Strom, Law Firms’ AI Nightmare Is Fewer Billed Hours and Lower Profits, Bloomberg Law (May 16, 2024 2:00 PDT), https://news.bloomberglaw.com/business-and-practice/law-firms-ai-nightmare-is-fewer-billed-hours-and-lower-profits.