Wall Street starts cutting lawyer fees for AI: Not only saving on man-hours, but also requiring lower quotes
2026-09-01 18:19:42
According to CoinMeta, Wall Street has begun to require large law firms in the United States to directly incorporate the efficiency improvements brought about by AI into their quotes. Goldman Sachs, Morgan Stanley, and Citibank have stated that AI has reduced a 10-hour task to 4 hours, naturally leading to lower billing amounts. Banks hope to further reduce costs and are asking law firms to calculate in advance the savings that AI can achieve, and to provide lower total prices. Citibank has already asked law firms to bid for projects, specifying the cost savings that AI can provide. Morgan Stanley plans to procure most external legal work through bidding by the end of the year and to use fixed prices more frequently. Goldman Sachs is also inquiring with various law firms about the extent of efficiency improvements brought by AI. This change directly impacts the long-standing profit model of large law firms, which relies on "hours worked × hourly rate." Although tasks such as research, contract review, and litigation document retrieval can be accelerated by AI, the hourly rates of top U.S. law firms are still on the rise. Wall Street hopes to deduct the costs saved by AI directly from attorneys' fees.
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Source:Internet
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