Cleary Gottlieb, one of the most highly regarded law firms in the United States and currently ranked 30th in terms of gross revenue in the Am Law 100 ranking, is ambitiously eyeing to break into the top 20 spots. This would necessitate raising their gross revenue by an impressive $500 million from last year, a remarkable 36% increase. Achieving this target, Cleary Gottlieb’s managing partner Michael Gerstenzang hinted, could involve incorporating artificial intelligence (AI) into the firm’s operational strategy.
Gerstenzang rejected the introduction of a nonequity partner layer, despite recognizing the financial advantages such a strategy can yield. As reported by Bloomberg Law, Gerstenzang explained that Cleary Gottlieb had previously abandoned this plan in 2020 over concerns about potentially eroding the firm’s reputation for consistent quality across its practices.
Yet, change seems to be in the cards for Cleary Gottlieb. Gerstenzang is leaning toward value-based billing as opposed to the traditional billable hour model. To execute this transition, he believes that generative AI could play a vital role. The application of AI, he argues, would create benefits for both clients and law firms. Yet it remains to be seen if this heavy reliance on AI can truly propel Cleary Gottlieb towards the prestigious top 20 of the Am Law 100 ranking.
Find more details about Gerstenzang’s ambitious plans and how AI may catalyse the leap in one of America’s top firms at the full article here.