The news that Weil Gotshal plans to wind down should get the attention of every attorney who thinks a prestigious name guarantees a future. Partner departures and failed merger discussions explain its immediate problems. I think artificial intelligence will create another problem for many firms that survive: efficiency.
Having worked at law firms before starting my own practice in 2010, I have seen the obsession with billable hours. Too often, the question was how many hours you billed, rather than what you accomplished for the client. There is something fundamentally wrong with a business model where completing an assignment faster can mean generating less revenue.
That is one reason I built a national flat-fee ERISA practice. Clients deserve to know what something will cost. They should benefit from my experience, rather than pay a penalty because I can identify an issue quickly.
AI puts pressure on the traditional model. Research, initial drafts, document comparisons, and routine reviews can take less time. Attorneys still need to verify the work, exercise judgment, and accept responsibility. However, telling clients that an assignment requires twenty hours becomes harder when technology substantially reduces the work involved.
Mid-sized and large firms have expensive offices, layers of attorneys, and compensation structures supported by substantial billing. If clients demand the savings that AI makes possible, those firms will have difficult decisions about pricing, staffing, and overhead.
I expect more firms to struggle. Weil’s situation does not prove that AI caused its downfall. It does demonstrate that even an established institution can unravel.
AI creates efficiency in a profession that has spent decades monetizing inefficiency. That is good for clients and uncomfortable for firms that confuse time spent with value delivered.
The firms that adapt will sell judgment and results. Everyone else will keep watching the clock.