April 3, 2025 — In a recently published Law360 article, William A. Brewer III argues the billable hour isn't just outdated – it's a liability threatening firms clinging to antiquated billing models.
In "Firms Must Embrace Alternative Billing Methods or Fall Behind," Brewer highlights the risk for firms reliant on antiquated billing models in a legal market reshaped by AI, enhanced competition, and growing demand for outcome-based fee arrangements. Brewer states, “Law firms face a choice: evolve or fade into irrelevance. To stay competitive, they must ditch the billable hour, embrace AI, and accelerate their digital transformation – before it’s too late.”
Brewer predicts that firms willing to adopt outcome-based fee arrangements will gain a decisive edge. Clients, he notes, are demanding results and will become increasingly unwilling to bankroll unproductive hours. Frustrated, they will seek alternatives.
“As more companies seek legal services that prioritize outcomes over hours, the firms that embrace this new paradigm will gain a decisive competitive advantage. Those who resist will lose ground to tech-savvy boutiques, Big Four firms and legal startups that aren't shackled by tradition.”
Brewer then addresses Big Law directly, stating, “Big Law must evolve now to stay ahead. The firms that embrace AI, ditch the billable hour and redefine their value proposition will thrive. This is the dawn of a golden age. Technology holds the promise of less drudgery, expanded access to justice, and firms empowered to deliver sharper, faster and more strategic legal services. Change isn't coming — it's here. And the firms that are embracing it won't just survive. They'll set the standard for the future.”