And it begins…(a good start…)
Wall Street banks are pushing large law firms to cut fees, arguing that the business model that has enriched top lawyers for decades is not sustainable in an era of AI. Morgan Stanley and Citigroup have told major law firms they want to set up new payment arrangements that would save them money, the banks’ […] The post And it begins…(a good start…) appeared first on Marginal REVOLUTION .
Wall Street institutions, such as Morgan Stanley and Citigroup, are urging leading law firms to renegotiate their fee structures, arguing that the existing model, which has profited top lawyers for many years, may no longer be viable in the era of artificial intelligence. These banks have discussed alternative payment arrangements with prominent law firms, according to the in-house lawyers of Citigroup and Morgan Stanley, who spoke with the Financial Times.
Citigroup’s global head of legal, Adam Meshel, stated that if the amount of time spent on a case decreases due to AI advancements, the cost per transaction should significantly reduce. The bank has begun soliciting bids from law firms, explaining during the bidding process how they are saving costs through AI. Meshel believes that this shift could fundamentally alter the revenue foundation for these large law firms.
This development aligns with predictions made by the author in various public talks. The article by Kaye Wiggins and Joshua Franklin was published on Marginal REVOLUTION.
Written by urgent.news from Marginal Revolution's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
