AI isn’t just the future — it’s the present. Law firms are embracing AI technology, but questions still abound: How can ROI be measured? Should ROI be measured at all? How can firms account for AI in pricing models? Will clients accept something other than the traditional hourly billing?
At a recent roundtable hosted by the Financial Times and iManage, lawyers from 15 prominent firms gathered to provide their insights into these issues and more.
Why ROI is the wrong starting point
The discussion began with the following prompt (pun intended): How do you measure the ROI on AI? The answer wasn’t straightforward.
Focusing solely on financial ROI for AI is “like asking what the ROI is on email,” one panelist observed. AI isn’t optional anymore, the panelist continued — it’s a strategic necessity that firms will need to survive and compete over the next five years. Trying to isolate AI’s return from factors like talent dynamics or regulatory shifts will always fall short. Instead, firms should first ask whether they can afford not to build AI capabilities.
As another panelist noted, the real conversation begins with client expectations and retention. Without AI, firms risk losing associates and clients who now expect tech-enabled service. Measuring the effects of AI on talent and client loyalty becomes as important — if not more — than a pure financial metric.
People and adoption: The human side of AI
Many of the panelists agreed that, more than an investment in future profits, AI investment is fundamentally an investment in people. Given this consensus, adoption rates emerged as the primary early metric: who’s actually using AI, and how are workflows changing? Are the workflows changing for the better? A panelist stressed that tech must adapt to lawyers’ processes, not the other way around.
Training associates will be critical for adoption. Another panelist argued against a one-size-fits-all rollout, noting that different roles need tailored AI training to maximise value and manage billing impacts.
Client expectations and pricing: Navigating change
Clients want faster and cheaper service. Nothing has changed there, and most still prefer hourly billing for its simplicity and comparability. One panelist pointed out that few clients are ready to embrace value pricing, even when speed enhancements — such as a 24-hour turnaround — warrant a premium. Some firms are experimenting with daily or flat-fee models to bundle infrastructure costs, but a broad consensus remained elusive. The age-old problem remains of how to get to value-based pricing when everyone knows how the existing game is played.
Reflection, not reaction
AI is making an unevenly distributed impact in legal, but its lasting significance has yet to be determined. Questions remain — but so does opportunity for better, more meaningful work.
As one panelist noted, this should be a time for measured reflection, not reactive scrambling. The future unit of legal value may no longer be hours worked but advisor experience, relationship depth, and strategic insight. AI will excel at information processing, while lawyers must double down on human strengths, such as providing situational advice and offering creative solutions to legal problems.
From questions to clarity
AI is moving fast. That’s why iManage is focused not just on building AI but building AI Confidence™ on a bedrock of well-governed, actionable knowledge — so you can feel clear, secure, and ready to make meaningful decisions about how to bring AI into your firm.
Learn more about approaching AI with confidence.
Alex is Senior Director of Product - Search, Knowledge, & AI. He has over 20 years of experience in product management and service design, including new and emerging technologies such as artificial intelligence, semantic search and linked data, as well as content management. Prior to iManage, Alex has held positions at Reed Smith LLP and LexisNexis UK.
Making Knowledge Work
Request a demo
Ready to see how iManage can make a difference to your organization?
Book a Demo