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Client Expectations
2 minute read | 1 day ago

The AI Red Flag

Photo of Thames Schoenvogel By: Thames Schoenvogel

WPG recently hosted our annual Law Firm Leaders Roundtable, where managing partners and firm leaders met over two days to discuss a number of issues facing the industry. As in previous years, the discussions were lively and insightful.

Not surprisingly, one of the most-discussed topics was how AI is continuing to change the legal landscape. As WPG’s Laura Meherg shared, we’ve seen the change firsthand in our client interviews.

A year ago, about one third of companies we interviewed were passionate about AI, one third were curious but not doing much, and one third were not interested. Now, around 90% of our client interviewees are talking about how they expect concrete AI plans from their firms. The sentiment has moved from interest to: “It’s a red flag if you don’t have it.” Tara Weintritt also echoed these sentiments in her recent LinkedIn series #ItsNotASecret.

The Roundtable participants agreed that clients are not only expecting AI to be used in legal work (contract drafting, diligence, etc.). They also want to hear how AI is helping the firms operate more efficiently to pass along savings to clients. Said one: “I have a lot of PE clients, and they ask, ‘How are you using it within finance, HR, recruiting?’”

In response, managing partners shared examples of other ways their firms are using AI analysis:

  • Specific AI-supported efficiency goals for admin teams
  • Finance teams using AI analysis to see where partners need to raise rates
  • AI analysis of how practice group leaders are spending their time
  • AI analysis of e-billing procedures and outside counsel guidelines to minimize errors

As Tara noted in her post, clients expect fluency, clarity, and proof. They want to hear it from the lawyers doing the work and they want specifics. She also offers a few suggestions if you are feeling behind:

  • Start small or with a pilot group of clients.
  • Be practical. Focus on outcomes your client can see and feel.
  • Keep the conversation ongoing and adapt accordingly.
  • Empower super users.
  • Embrace discomfort and change.
  • Clearly articulate risk, security guardrails, and expectations to all.

For more specific suggestions on where to utilize AI, check out her post. As one client told WPG: “I’m less interested in conversations with the firm’s innovation or AI task force. I want concrete suggestions for implementation and cost savings.”