> How many times, before an invoice goes to a client, has a partner cut a double-digit percentage from the bill?
Incredible. I mean, of course this happens, but as a non-lawyer this is the first time I've thought about how the market incentives influence billing for legal services. So effectively legal service prices correlate with perceived output value, and the hourly rate serves as a sort of anchor point to manage customer/client expectations.
Using a toy scenario just to feel out order-of-magnitude effects, how do you feel pricing would be effected if AI tooling were to cut billable hours by 2x? What about 10% vs 10x? For small perturbations, I would guess that quoted hourly rates and/or our calibration discounts could move to absorb the difference; however, an industry-wide 2x price hike over a short period seems very unlikely, so what would give?
To be honest, I feel like I've already revealed as much of how the sausages are made as I can :) The precise calibration of what will happen when billable hours go up or down by 10-50% are something that we'll need to think about in a hundred different instances weighed against the volatility of those changes before there's any kind of general concensus on how such price adjustments "feel".
> How many times, before an invoice goes to a client, has a partner cut a double-digit percentage from the bill?
Incredible. I mean, of course this happens, but as a non-lawyer this is the first time I've thought about how the market incentives influence billing for legal services. So effectively legal service prices correlate with perceived output value, and the hourly rate serves as a sort of anchor point to manage customer/client expectations.
Using a toy scenario just to feel out order-of-magnitude effects, how do you feel pricing would be effected if AI tooling were to cut billable hours by 2x? What about 10% vs 10x? For small perturbations, I would guess that quoted hourly rates and/or our calibration discounts could move to absorb the difference; however, an industry-wide 2x price hike over a short period seems very unlikely, so what would give?
To be honest, I feel like I've already revealed as much of how the sausages are made as I can :) The precise calibration of what will happen when billable hours go up or down by 10-50% are something that we'll need to think about in a hundred different instances weighed against the volatility of those changes before there's any kind of general concensus on how such price adjustments "feel".