{"id":131259,"date":"2025-08-20T10:35:23","date_gmt":"2025-08-20T18:35:23","guid":{"rendered":"https:\/\/xira.com\/p\/2025\/08\/20\/why-law-firms-are-moving-beyond-the-billable-hour\/"},"modified":"2025-08-20T10:35:23","modified_gmt":"2025-08-20T18:35:23","slug":"why-law-firms-are-moving-beyond-the-billable-hour","status":"publish","type":"post","link":"https:\/\/xira.com\/p\/2025\/08\/20\/why-law-firms-are-moving-beyond-the-billable-hour\/","title":{"rendered":"Why Law Firms Are Moving Beyond The Billable Hour"},"content":{"rendered":"
\"\"
<\/figcaption><\/figure>\n

There\u2019s long been speculation that the billable hour\u2019s demise is just around the corner.\u00a0<\/p>\n

But with generative AI and rapid technological advances gaining traction in the legal industry, is the billable hour *really* doomed this time?\u00a0\u00a0<\/p>\n

In a recent webinar sponsored by 8am\u2122, the panelists \u2014 professionals in subscription legal services \u2014 agreed that it is.\u00a0<\/p>\n

\u201cFor me, it\u2019s been dying since the moment I discovered it, which was around eight years ago, when I had to start tracking my time for the first time,\u201d says Matthew Kerbis of Subscription Attorney LLC.\u00a0<\/p>\n

Here, we share five reasons why the billable hour will go away, according to the panelists.<\/p>\n

(You can register for the full webinar on-demand at this link.)<\/a><\/strong><\/p>\n

It\u2019s Not Profitable<\/strong><\/p>\n

Kerbis and his co-panelist, Kimberly Bennett of Fidu, agree that the billable hour isn\u2019t the most profitable model. This is particularly true for solos and lawyers at small firms.\u00a0<\/p>\n

\u201cWhat you\u2019re doing is you\u2019re capping how much revenue you could earn in a day,\u201d Kerbis says. \u201cAnd of that, how much will clients actually pay?\u201d<\/p>\n

The panelists point to years of legal trends reports issued by practice management companies. These reports repeatedly reveal that lawyers at small firms only collect on a few billable hours a day.\u00a0<\/p>\n

\u201cTo generate more revenue, you have to hire more billers,\u201d Kerbis says, \u201cand lawyers are expensive.\u201d\u00a0<\/p>\n

It Causes Friction With Clients<\/strong><\/p>\n

As Bennett sees it, the trends reports also reveal that human error is a part of the billing process.\u00a0<\/p>\n

As a result, she says, clients will often push back on hours billed, and lawyers will often offer discounts. It\u2019s a process that creates friction in the relationship.\u00a0<\/p>\n

\u201cUltimately, the billable hour is something that holds you back from creativity, curiosity, and just showing up differently for your clients,\u201d she says.\u00a0<\/p>\n

Lawyers Don\u2019t Even Like It<\/strong><\/p>\n

If lawyers liked billing by the hour, they would be better at it, according to Kerbis. The legal industry trends reports that show only a few billable hours a day bear out this reality.\u00a0<\/p>\n

He also cites a \u201ccognitive disconnect\u201d in the industry: Lawyers prize efficiency and want better work-life balance, yet the longer things take, the more they get paid.\u00a0<\/p>\n

\u201cI think that cognitive disconnect actually plays a role in why lawyers have never really enjoyed billing by the hour,\u201d he says.\u00a0<\/p>\n

It Hasn\u2019t Always Been This Way<\/strong><\/p>\n

One reason behind the billable hour\u2019s endurance is what Forbes has called \u201cthe most dangerous phrase in business<\/a>\u201d: \u201cWe\u2019ve always done it this way.\u201d\u00a0<\/p>\n

But Bennett notes that the billable hour is a relatively new phenomenon in the life of the legal industry, becoming the prominent model in the \u201960s and \u201970s.<\/p>\n

\u201cIt\u2019s dying,\u201d she says. \u201cAI is here to fast track you toward it for so many reasons, but it\u2019s already been on that path.\u201d<\/p>\n

Generative AI Is Growing<\/strong><\/p>\n

Speaking of AI \u2014 Kerbis also sees its emergence as a potentially fatal blow to the billable hour model.\u00a0<\/p>\n

\u201cWhen AI hit the scene, it really became the No. 1 best reason why you can\u2019t be billing time anymore,\u201d Kerbis says, \u201cbecause it\u2019s simply not profitable anymore with the efficiencies that AI brings.\u201d\u00a0<\/p>\n

Enter Legal Billing Software<\/strong><\/p>\n

As digital services and diverse payment methods become more common, lawyers are adapting their billing practices to better serve clients.\u00a0<\/p>\n

Offering customized alternative fee arrangements can help improve client satisfaction while also improving your law firm\u2019s profitability. Leveraging the right software can help your law firm more easily manage these tailored fee agreements without spending more time on non-billable work.<\/p>\n

8am LawPay legal billing software<\/a> is purpose-built to offer greater flexibility in how lawyers structure their fee arrangements, freeing you up to think about how best to run your legal practice. Schedule a live LawPay demo today to learn more.<\/strong><\/a><\/p>\n<\/p>\n

The post Why Law Firms Are Moving Beyond The Billable Hour<\/a> appeared first on Above the Law<\/a>.<\/p>\n

\"\"
<\/figcaption><\/figure>\n

There\u2019s long been speculation that the billable hour\u2019s demise is just around the corner.\u00a0<\/p>\n

But with generative AI and rapid technological advances gaining traction in the legal industry, is the billable hour *really* doomed this time?\u00a0\u00a0<\/p>\n

In a recent webinar sponsored by 8am\u2122, the panelists \u2014 professionals in subscription legal services \u2014 agreed that it is.\u00a0<\/p>\n

\u201cFor me, it\u2019s been dying since the moment I discovered it, which was around eight years ago, when I had to start tracking my time for the first time,\u201d says Matthew Kerbis of Subscription Attorney LLC.\u00a0<\/p>\n

Here, we share five reasons why the billable hour will go away, according to the panelists.<\/p>\n

(You can register for the full webinar on-demand at this link.)<\/a><\/strong><\/p>\n

It\u2019s Not Profitable<\/strong><\/p>\n

Kerbis and his co-panelist, Kimberly Bennett of Fidu, agree that the billable hour isn\u2019t the most profitable model. This is particularly true for solos and lawyers at small firms.\u00a0<\/p>\n

\u201cWhat you\u2019re doing is you\u2019re capping how much revenue you could earn in a day,\u201d Kerbis says. \u201cAnd of that, how much will clients actually pay?\u201d<\/p>\n

The panelists point to years of legal trends reports issued by practice management companies. These reports repeatedly reveal that lawyers at small firms only collect on a few billable hours a day.\u00a0<\/p>\n

\u201cTo generate more revenue, you have to hire more billers,\u201d Kerbis says, \u201cand lawyers are expensive.\u201d\u00a0<\/p>\n

It Causes Friction With Clients<\/strong><\/p>\n

As Bennett sees it, the trends reports also reveal that human error is a part of the billing process.\u00a0<\/p>\n

As a result, she says, clients will often push back on hours billed, and lawyers will often offer discounts. It\u2019s a process that creates friction in the relationship.\u00a0<\/p>\n

\u201cUltimately, the billable hour is something that holds you back from creativity, curiosity, and just showing up differently for your clients,\u201d she says.\u00a0<\/p>\n

Lawyers Don\u2019t Even Like It<\/strong><\/p>\n

If lawyers liked billing by the hour, they would be better at it, according to Kerbis. The legal industry trends reports that show only a few billable hours a day bear out this reality.\u00a0<\/p>\n

He also cites a \u201ccognitive disconnect\u201d in the industry: Lawyers prize efficiency and want better work-life balance, yet the longer things take, the more they get paid.\u00a0<\/p>\n

\u201cI think that cognitive disconnect actually plays a role in why lawyers have never really enjoyed billing by the hour,\u201d he says.\u00a0<\/p>\n

It Hasn\u2019t Always Been This Way<\/strong><\/p>\n

One reason behind the billable hour\u2019s endurance is what Forbes has called \u201cthe most dangerous phrase in business<\/a>\u201d: \u201cWe\u2019ve always done it this way.\u201d\u00a0<\/p>\n

But Bennett notes that the billable hour is a relatively new phenomenon in the life of the legal industry, becoming the prominent model in the \u201960s and \u201970s.<\/p>\n

\u201cIt\u2019s dying,\u201d she says. \u201cAI is here to fast track you toward it for so many reasons, but it\u2019s already been on that path.\u201d<\/p>\n

Generative AI Is Growing<\/strong><\/p>\n

Speaking of AI \u2014 Kerbis also sees its emergence as a potentially fatal blow to the billable hour model.\u00a0<\/p>\n

\u201cWhen AI hit the scene, it really became the No. 1 best reason why you can\u2019t be billing time anymore,\u201d Kerbis says, \u201cbecause it\u2019s simply not profitable anymore with the efficiencies that AI brings.\u201d\u00a0<\/p>\n

Enter Legal Billing Software<\/strong><\/p>\n

As digital services and diverse payment methods become more common, lawyers are adapting their billing practices to better serve clients.\u00a0<\/p>\n

Offering customized alternative fee arrangements can help improve client satisfaction while also improving your law firm\u2019s profitability. Leveraging the right software can help your law firm more easily manage these tailored fee agreements without spending more time on non-billable work.<\/p>\n

8am LawPay legal billing software<\/a> is purpose-built to offer greater flexibility in how lawyers structure their fee arrangements, freeing you up to think about how best to run your legal practice. Schedule a live LawPay demo today to learn more.<\/strong><\/a><\/p>\n<\/p>\n

The post Why Law Firms Are Moving Beyond The Billable Hour<\/a> appeared first on Above the Law<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s long been speculation that the billable hour\u2019s demise is just around the corner.\u00a0 But with generative AI and rapid technological advances gaining traction in the legal industry, is the billable hour *really* doomed this time?\u00a0\u00a0 In a recent webinar sponsored by 8am\u2122, the panelists \u2014 professionals in subscription legal services \u2014 agreed that it […]<\/p>\n","protected":false},"author":3,"featured_media":131198,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-131259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-above_the_law"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/xira.com\/p\/wp-content\/uploads\/2025\/08\/clock-3417153_1280-1024x682-2R3daT.jpg?fit=1024%2C682&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts\/131259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/comments?post=131259"}],"version-history":[{"count":0,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts\/131259\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/media\/131198"}],"wp:attachment":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/media?parent=131259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/categories?post=131259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/tags?post=131259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}