Reflecting on the evolution of legal service billing, in-house counsel members will recall the days of block billing, where a firm would consolidate all services rendered into a bill sent to the client at the end of the month. The total, often unnerving, along with the lack of breakdown of times spent on specific tasks, made it almost impossible to determine the reasonability of the bill. In many instances, firms would assume that the bill would be settled without question, which was often the case.
As we fast forward, a new issue emerging is the determination of AI time spent on tasks. For instance, if an associate requires three hours to draft a document that an AI could assemble significantly faster, how should the artificial assistant’s time spent be billed? A Practical Guidance by California State Bar to its licensees makes suggestions on how AI fits into the Rules of Professional Conduct and the State Bar Act.
State Bars, like California and Florida—the latter issuing guidance similar to California—are considering how to advise lawyers and law firms on using generative AI in practice. The changing landscape leaves many questions unanswered. For instance, how will malpractice insurance carriers cover generative AI? Will the coverage have set limits, exclusions, or specific conditions for the use of AI?
Another discussion pertains to multijurisdictional practice (MJP) limitations. With the increasing intersection of businesses and interests across state lines, a question that arises is when the legal profession will acknowledge the necessity for law practice that is not limited by geographical boundaries. The ABA Model Rule 5.5 on the unauthorized practice of law (UPL) is seen as a start, but it begs these questions: How temporary can a “temporary” basis of legal advice be? How do lawyers maintain service across state lines?
In the end, clients expect service that is not impeded by geographical restrictions or legal nuances such as UPL. Despite the strides made in AI utility in the legal profession, there’s a need for policies and guidance that are flexible enough for rapidly evolving client needs and expectations.