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P E E R T O P E E R : I L T A ' S Q U A R T E R L Y M A G A Z I N E | W I N T E R 2 0 2 4
B Y N A N C Y J E N G
THE FORGOTTEN
AI USE CASE
Automating Billable Time-Tracking
T
he rise of AI in legal tech has
spurred a wave of excitement,
primarily focused on automating
law practice. Many law firms are
exploring AI to streamline core legal work
like legal research, summarizing complex
information, and drafting initial versions
of documents. In fact, according to ILTA's
Legal Tech Trends 2024 survey, these
three activities top the list of projected AI
applications in law firms. The catch? These
are all billable activities.
While these AI advancements are
impressive, they come with an inherent
challenge: AI's impact on billable tasks
directly and negatively affects revenue. The
more core work that AI handles, the fewer
billable hours accrued. Decreasing billable
hours can create a conflict of interest for
firms operating under the billable hour
model, leading to a cautious approach in
adopting AI for client-facing, revenue-
driving tasks.
Instead, the most transformative AI
application may not replace legal work
but optimize the business of law—starting
with the persistent headache of time-
tracking. Time tracking is essential to legal
billing but is notorious for being repetitive,
time-consuming, and ultimately unbillable.
