{"id":162202,"date":"2026-09-03T08:01:00","date_gmt":"2026-09-03T16:01:00","guid":{"rendered":"https:\/\/xira.com\/p\/2026\/09\/03\/when-clients-ask-about-ai-how-should-firms-respond\/"},"modified":"2026-09-03T08:01:00","modified_gmt":"2026-09-03T16:01:00","slug":"when-clients-ask-about-ai-how-should-firms-respond","status":"publish","type":"post","link":"https:\/\/xira.com\/p\/2026\/09\/03\/when-clients-ask-about-ai-how-should-firms-respond\/","title":{"rendered":"When Clients Ask About AI, How Should Firms Respond?"},"content":{"rendered":"
\"\"
From left, Dennis Garcia of Litera, Donovan Bell of CLOC, and Rahul Chhabra of Herbert Smith Freehills Kramer.<\/figcaption><\/figure>\n

Although today\u2019s legal technology events, above all else, showcase the many ways AI is disrupting the industry, at least one speaker at ILTACON 2026 noted changes in another area.\u00a0<\/p>\n

As parents and educators are well aware, elementary school students can\u2019t just come up with the right answer to a math problem anymore. In the AI age, they\u2019re also graded on how well they document the process that got to the result.\u00a0<\/p>\n

Law firms face a similar dynamic, notes Donovan Bell, a CLOC board member and former head of global legal operations at Intel.\u00a0<\/p>\n

When law firms are explaining AI use to clients, their least effective response is to just list the tools they\u2019re using at a high level. Instead, they need to show their work \u2014 and to do so in detail.\u00a0<\/p>\n

\u201cI was fortunate to have a firm sit down and give me a presentation,\u201d Bell says, recalling an outside counsel who detailed exactly how AI was involved in the full life of a matter.\u00a0<\/p>\n

The presentation demonstrated the value AI was providing as an enabler for the work, its effects on lowering costs, and how lawyers were using technology throughout the process to ensure the highest quality output.<\/p>\n

\u201cThat really appealed to me,\u201d he says. \u201cIt made me sit up, lean forward, and definitely say, \u2018OK, I want to hear more, and definitely want to work with you.\u2019\u201d<\/p>\n

Bell\u2019s comments came on a Litera masterclass panel that went into detail on how law firms should \u2014 and should not \u2014 respond when clients ask about their use of artificial intelligence tools.\u00a0<\/p>\n

Still, detailing AI use to every client is a big ask, notes Litera GC Dennis Garcia, the discussion\u2019s moderator.<\/p>\n

The question has been coming up in RFP responses, security questionnaires, retainer agreements, and amendments to those agreements.\u00a0<\/p>\n

\u201cIt seems like a relatively straightforward question, which could be easy to answer,\u201d he says. \u201cAnd the reality is, it\u2019s not so easy to answer, because you just can\u2019t say, \u2018Hey, we\u2019re using these AI solutions or tools.\u2019 You need to get deeper.\u201d\u00a0<\/p>\n

From Cringe to Based\u00a0<\/strong><\/p>\n

If a law firm wants to make clients run for the exits, shallow, formulaic responses are a good way to make that happen.\u00a0<\/p>\n

If the firm is promising change without a baseline to track the change, for example, or failing to demonstrate understanding of the company\u2019s particular workflows, clients will cringe.\u00a0<\/p>\n

\u201cI want to know: Do you understand the core of the challenge that we\u2019re trying to meet?\u201d Bell says.\u00a0<\/p>\n

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

Another red flag: leaving out the firm\u2019s own technology professionals and featuring only lawyers when detailing the firm\u2019s technology use to a client.\u00a0<\/p>\n

\u201cWe want to see the right capabilities within the firms now, to help them shape and use this technology,\u201d notes Rahul Chhabra, a former legal operations professional at Meta, now the director of applied AI at Herbert Smith Freehills Kramer.<\/p>\n

Firms can instead win over their clients by getting into the weeds, sharing as many specifics and details as possible. This allows them to showcase how they are using AI and the strategic thinking behind its implementation.\u00a0<\/p>\n

The firm can detail things like how the proverbial \u201chuman in the loop\u201d is participating in the work, how risk is being effectively managed, and areas where it might be appropriate for a partner to engage.<\/p>\n

\u201cIt\u2019s not just me saying, \u2018Hey I see you\u2019re using AI, so why isn\u2019t the bill rate going down?\u2019\u201d Bell notes. \u201cBut it\u2019s more so: \u2018Here\u2019s the life of the matter, and here\u2019s the cost of that matter, and how not only am I able to optimize the cost, but also here\u2019s where you\u2019re effectively managing the risk.\u2019\u201d<\/p>\n

Getting in the Weeds<\/strong><\/p>\n

So if firms want to keep their clients happy and remain competitive today, they need to communicate individualized reports on AI adoption to them all. But what does an effective report look like, and how can they best go about it?\u00a0\u00a0<\/p>\n

\u201cYou just can\u2019t give one standard answer to each of your clients regarding this question, right?\u201d Garcia says. \u201cYou have to make it a tailored and bespoke answer that is responsive to their needs.\u201d<\/p>\n

These reports must lay out the strategic thinking behind the firm\u2019s technology use and implementation \u2014 and do so in as much detail as possible, with as much specificity to the client as possible. They must document how the technology is bolstering the services they deliver, while also controlling expenditures.\u00a0<\/p>\n

It\u2019s a process that Biglaw is still in the early stages of figuring out.<\/p>\n

\u201cI think it\u2019s hard because a lot of us as law firms, we are not in the business of data,\u201d Chhabra notes. \u201cWe are in the business of providing advice, and we are really good at that.\u201d<\/p>\n

Firms may struggle to report exactly what has changed through technology implementation, he says, because a lot of times they don\u2019t have a fleshed out baseline to compare it to.\u00a0<\/p>\n

Chhabra notes how Litera Foundation<\/a> supports a law firm\u2019s efforts in meeting a challenging moment.\u00a0<\/p>\n

The system centralizes matter history, lawyer credentials, and client data into connected, searchable profiles that fuel faster, more credible pitches and proposals. It\u2019s the type of support he needs to handle the volume and demands he\u2019s facing.<\/p>\n

\u201cI think it\u2019s really valuable to have tools like that, that connect all of your business services systems, and which can start giving you insights into a matter,\u201d he says. \u201cWe as firms are now thinking through that and shaping that.\u201d\u00a0<\/p>\n

Where Transparency Leads<\/strong><\/p>\n

As the panel neared its Q&A phase, Garcia asked the audience for a show of hands. The question: \u201cHas anyone effectively measured return on AI investment?\u201d\u00a0<\/p>\n

Almost no hands went up.\u00a0\u00a0<\/p>\n

\u201cDo you know who is responsible for determining whether AI is working?\u201d drew a few more.\u00a0<\/p>\n

It\u2019s a dynamic that has been well documented<\/a> in recent<\/a> studies<\/a>.<\/p>\n

For Chhabra, keeping up with the rapid pace of change is a key driver.\u00a0\u00a0<\/p>\n

\u201cToday, we don\u2019t have all the answers of how it\u2019s actually helping us get return on investment,\u201d he says. \u201cBut if we do not learn these tools today while we\u2019re trying to figure out the ROI answer, we are going to be left behind.\u201d\u00a0<\/p>\n

And for law firms, many of the business benefits ultimately boil down to client service.<\/p>\n

If firms can provide services to them more quickly and more effectively, Chhabra says, they can bill for this outcome. It\u2019s a model that can go beyond value-based pricing to outcome-based pricing.\u00a0<\/p>\n

He gave the example of a company offering to pay a firm a $2 million bonus on top of their fee if they can close a litigation matter within six months.\u00a0<\/p>\n

If it\u2019s a product company and it\u2019s building a new supply chain that\u2019s being held up by the litigation, the value for the client could be $100 million \u2014 and they\u2019d be willing to share 5% of that money.\u00a0<\/p>\n

To bring about these arrangements, transparency and detail in client communications are essential, he notes. What is the thinking behind the strategy? What are the important issues? What is the outcome you really want?\u00a0<\/p>\n

\u201cSo there\u2019s a lot of that,\u201d Chhabra says. \u201cThose conversations when you\u2019re transparent with your clients, when you\u2019re having the real conversations with them.\u201d<\/p>\n

For more about Litera Foundation, you can book a demo here<\/a>.<\/em><\/p>\n

The post When Clients Ask About AI, How Should Firms Respond?<\/a> appeared first on Above the Law<\/a>.<\/p>\n

\"\"
From left, Dennis Garcia of Litera, Donovan Bell of CLOC, and Rahul Chhabra of Herbert Smith Freehills Kramer.<\/figcaption><\/figure>\n

Although today\u2019s legal technology events, above all else, showcase the many ways AI is disrupting the industry, at least one speaker at ILTACON 2026 noted changes in another area.\u00a0<\/p>\n

As parents and educators are well aware, elementary school students can\u2019t just come up with the right answer to a math problem anymore. In the AI age, they\u2019re also graded on how well they document the process that got to the result.\u00a0<\/p>\n

Law firms face a similar dynamic, notes Donovan Bell, a CLOC board member and former head of global legal operations at Intel.\u00a0<\/p>\n

When law firms are explaining AI use to clients, their least effective response is to just list the tools they\u2019re using at a high level. Instead, they need to show their work \u2014 and to do so in detail.\u00a0<\/p>\n

\u201cI was fortunate to have a firm sit down and give me a presentation,\u201d Bell says, recalling an outside counsel who detailed exactly how AI was involved in the full life of a matter.\u00a0<\/p>\n

The presentation demonstrated the value AI was providing as an enabler for the work, its effects on lowering costs, and how lawyers were using technology throughout the process to ensure the highest quality output.<\/p>\n

\u201cThat really appealed to me,\u201d he says. \u201cIt made me sit up, lean forward, and definitely say, \u2018OK, I want to hear more, and definitely want to work with you.\u2019\u201d<\/p>\n

Bell\u2019s comments came on a Litera masterclass panel that went into detail on how law firms should \u2014 and should not \u2014 respond when clients ask about their use of artificial intelligence tools.\u00a0<\/p>\n

Still, detailing AI use to every client is a big ask, notes Litera GC Dennis Garcia, the discussion\u2019s moderator.<\/p>\n

The question has been coming up in RFP responses, security questionnaires, retainer agreements, and amendments to those agreements.\u00a0<\/p>\n

\u201cIt seems like a relatively straightforward question, which could be easy to answer,\u201d he says. \u201cAnd the reality is, it\u2019s not so easy to answer, because you just can\u2019t say, \u2018Hey, we\u2019re using these AI solutions or tools.\u2019 You need to get deeper.\u201d\u00a0<\/p>\n

From Cringe to Based\u00a0<\/strong><\/p>\n

If a law firm wants to make clients run for the exits, shallow, formulaic responses are a good way to make that happen.\u00a0<\/p>\n

If the firm is promising change without a baseline to track the change, for example, or failing to demonstrate understanding of the company\u2019s particular workflows, clients will cringe.\u00a0<\/p>\n

\u201cI want to know: Do you understand the core of the challenge that we\u2019re trying to meet?\u201d Bell says.\u00a0<\/p>\n

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

Another red flag: leaving out the firm\u2019s own technology professionals and featuring only lawyers when detailing the firm\u2019s technology use to a client.\u00a0<\/p>\n

\u201cWe want to see the right capabilities within the firms now, to help them shape and use this technology,\u201d notes Rahul Chhabra, a former legal operations professional at Meta, now the director of applied AI at Herbert Smith Freehills Kramer.<\/p>\n

Firms can instead win over their clients by getting into the weeds, sharing as many specifics and details as possible. This allows them to showcase how they are using AI and the strategic thinking behind its implementation.\u00a0<\/p>\n

The firm can detail things like how the proverbial \u201chuman in the loop\u201d is participating in the work, how risk is being effectively managed, and areas where it might be appropriate for a partner to engage.<\/p>\n

\u201cIt\u2019s not just me saying, \u2018Hey I see you\u2019re using AI, so why isn\u2019t the bill rate going down?\u2019\u201d Bell notes. \u201cBut it\u2019s more so: \u2018Here\u2019s the life of the matter, and here\u2019s the cost of that matter, and how not only am I able to optimize the cost, but also here\u2019s where you\u2019re effectively managing the risk.\u2019\u201d<\/p>\n

Getting in the Weeds<\/strong><\/p>\n

So if firms want to keep their clients happy and remain competitive today, they need to communicate individualized reports on AI adoption to them all. But what does an effective report look like, and how can they best go about it?\u00a0\u00a0<\/p>\n

\u201cYou just can\u2019t give one standard answer to each of your clients regarding this question, right?\u201d Garcia says. \u201cYou have to make it a tailored and bespoke answer that is responsive to their needs.\u201d<\/p>\n

These reports must lay out the strategic thinking behind the firm\u2019s technology use and implementation \u2014 and do so in as much detail as possible, with as much specificity to the client as possible. They must document how the technology is bolstering the services they deliver, while also controlling expenditures.\u00a0<\/p>\n

It\u2019s a process that Biglaw is still in the early stages of figuring out.<\/p>\n

\u201cI think it\u2019s hard because a lot of us as law firms, we are not in the business of data,\u201d Chhabra notes. \u201cWe are in the business of providing advice, and we are really good at that.\u201d<\/p>\n

Firms may struggle to report exactly what has changed through technology implementation, he says, because a lot of times they don\u2019t have a fleshed out baseline to compare it to.\u00a0<\/p>\n

Chhabra notes how Litera Foundation<\/a> supports a law firm\u2019s efforts in meeting a challenging moment.\u00a0<\/p>\n

The system centralizes matter history, lawyer credentials, and client data into connected, searchable profiles that fuel faster, more credible pitches and proposals. It\u2019s the type of support he needs to handle the volume and demands he\u2019s facing.<\/p>\n

\u201cI think it\u2019s really valuable to have tools like that, that connect all of your business services systems, and which can start giving you insights into a matter,\u201d he says. \u201cWe as firms are now thinking through that and shaping that.\u201d\u00a0<\/p>\n

Where Transparency Leads<\/strong><\/p>\n

As the panel neared its Q&A phase, Garcia asked the audience for a show of hands. The question: \u201cHas anyone effectively measured return on AI investment?\u201d\u00a0<\/p>\n

Almost no hands went up.\u00a0\u00a0<\/p>\n

\u201cDo you know who is responsible for determining whether AI is working?\u201d drew a few more.\u00a0<\/p>\n

It\u2019s a dynamic that has been well documented<\/a> in recent<\/a> studies<\/a>.<\/p>\n

For Chhabra, keeping up with the rapid pace of change is a key driver.\u00a0\u00a0<\/p>\n

\u201cToday, we don\u2019t have all the answers of how it\u2019s actually helping us get return on investment,\u201d he says. \u201cBut if we do not learn these tools today while we\u2019re trying to figure out the ROI answer, we are going to be left behind.\u201d\u00a0<\/p>\n

And for law firms, many of the business benefits ultimately boil down to client service.<\/p>\n

If firms can provide services to them more quickly and more effectively, Chhabra says, they can bill for this outcome. It\u2019s a model that can go beyond value-based pricing to outcome-based pricing.\u00a0<\/p>\n

He gave the example of a company offering to pay a firm a $2 million bonus on top of their fee if they can close a litigation matter within six months.\u00a0<\/p>\n

If it\u2019s a product company and it\u2019s building a new supply chain that\u2019s being held up by the litigation, the value for the client could be $100 million \u2014 and they\u2019d be willing to share 5% of that money.\u00a0<\/p>\n

To bring about these arrangements, transparency and detail in client communications are essential, he notes. What is the thinking behind the strategy? What are the important issues? What is the outcome you really want?\u00a0<\/p>\n

\u201cSo there\u2019s a lot of that,\u201d Chhabra says. \u201cThose conversations when you\u2019re transparent with your clients, when you\u2019re having the real conversations with them.\u201d<\/p>\n

For more about Litera Foundation, you can book a demo here<\/a>.<\/em><\/p>\n

The post When Clients Ask About AI, How Should Firms Respond?<\/a> appeared first on Above the Law<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

From left, Dennis Garcia of Litera, Donovan Bell of CLOC, and Rahul Chhabra of Herbert Smith Freehills Kramer. Although today\u2019s legal technology events, above all else, showcase the many ways AI is disrupting the industry, at least one speaker at ILTACON 2026 noted changes in another area.\u00a0 As parents and educators are well aware, elementary […]<\/p>\n","protected":false},"author":3,"featured_media":162125,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-162202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-above_the_law"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/xira.com\/p\/wp-content\/uploads\/2026\/09\/Live-Webinar-Social-Post-2-1024x1024-I3wl3J.png?fit=1024%2C1024&ssl=1","_links":{"self":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts\/162202","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=162202"}],"version-history":[{"count":0,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts\/162202\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/media\/162125"}],"wp:attachment":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/media?parent=162202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/categories?post=162202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/tags?post=162202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}