In an industry where most law firms granting raises can afford it, increasing associate compensation often means raising fees, leading to client dissatisfaction, or increasing billable hours, causing associate displeasure. However, these are not the only options on the table.
Tech advancements are allowing lawyers to explore and develop applications tailored to the nuances of legal practice. General AI, for instance, might not always make the mark, at times leading to sanctions when applied blindly in legal proceedings. Instead, the future of technological augmentation in the legal field depends largely on the ability of lawyers to introspect their own processes and utilize existing technology in client-oriented manners.
Credence to this approach comes from Jayaram Law, an Intellectual Property firm that realizes the significance of creating something oneself. The firm collaborates with partner entities to shape tech applications that generate results for clients. They are in the process of launching an AI-powered trademark search tool, which combines tech automation and human overview.
The firm recently disclosed an interesting strategy – allocating 15% of the stock of its partnered legal tech company to staff members. Those contributing their intellectual acumen and efforts to the improvement of these tools can thus have access to this new revenue stream. Founder Vivek Jayaram elaborated that “the most successful lawyers in the next decade or so will be those innovating interesting tech.” He further stated that aligning development strategies with employee compensation creates “upside for our entire team while maintaining our rate structure”
While no one anticipates lawyers to suddenly turn into programmers, their active participation in technological development within the legal industry is set to increase, and rightfully so. This investment of time and skills should certainly warrant additional compensation, opening up new opportunities for law firms to increase associate compensation without compromising client or employee satisfaction.