pix4free
Morgan Stanley and Citigroup have informed law firms of their intention to establish new fee agreements. Goldman Sachs, the investment bank, has sought data from law firms regarding their savings attributed to AI technologies.
The FT highlights that the conflict between bankers and lawyers emerged regarding the usual method of determining fees for legal services. The requested amounts are influenced by various factors, including the workload of junior and mid-level attorneys, as well as any overtime. The newspaper reports that this automatically raises service costs.
Currently, bankers assert that a significant portion of the standard legal tasks can be accomplished much more quickly and economically with the help of AI. Adam Meshel, Citigroup's head of legal, told the FT that if AI has truly decreased the hours spent on each case, the firm anticipates a reduction in its costs as well.
Certain law firms have started employing fewer graduates. A Citi survey indicates that 47% of companies are onboarding fewer interns this year, while 49% intend to cut back on their intern count next year.
Nevertheless, certain attorneys contend that employing AI won't fully eradicate expensive overtime related to bank agreements. "Certain tasks can certainly be completed more quickly and with greater ease," mentions Sam Newhouse, vice president at the law firm Latham & Watkins. "What happens if we encounter more intricate problems?"
source: ft.com
The FT highlights that the conflict between bankers and lawyers emerged regarding the usual method of determining fees for legal services. The requested amounts are influenced by various factors, including the workload of junior and mid-level attorneys, as well as any overtime. The newspaper reports that this automatically raises service costs.
Currently, bankers assert that a significant portion of the standard legal tasks can be accomplished much more quickly and economically with the help of AI. Adam Meshel, Citigroup's head of legal, told the FT that if AI has truly decreased the hours spent on each case, the firm anticipates a reduction in its costs as well.
Certain law firms have started employing fewer graduates. A Citi survey indicates that 47% of companies are onboarding fewer interns this year, while 49% intend to cut back on their intern count next year.
Nevertheless, certain attorneys contend that employing AI won't fully eradicate expensive overtime related to bank agreements. "Certain tasks can certainly be completed more quickly and with greater ease," mentions Sam Newhouse, vice president at the law firm Latham & Watkins. "What happens if we encounter more intricate problems?"
source: ft.com