Kenyan law firms may review billing as AI speeds up legal work

Kenyan law firms could face growing pressure to change how they bill clients as artificial intelligence takes less time to complete some legal tasks.

The issue has come into focus after reports that major Wall Street banks are asking big law firms to lower their fees and show the savings made through AI. The banks are reportedly seeking new payment models and want law firms to explain how much time and money they save when using AI.

Technology is now used in legal research, contract review, document analysis and discovery. Work that could take a junior lawyer several hours can be done faster with AI. This may affect the billable-hour model, where clients pay based on the hours a lawyer spends on a case. Clients may begin questioning the charges if technology reduces several hours of work to one hour.

The same question could arise in Kenya as law firms increasingly adopt AI tools. Clients may want more information about how much they are paying for legal expertise and how much is for routine work that technology can handle quickly. AI may have the biggest effect on cases involving many documents and repeated tasks. It can help lawyers go through long records, find information in contracts and organise documents.

Lawyers will still be needed to check AI-generated information, interpret the law, protect confidential client details and take responsibility for advice given to clients.

Law firms may have to compete more on the quality of their judgment, speed, expertise and responsible use of technology instead of the number of hours billed. The change could lead to more fixed-fee and value-based pricing, where clients pay an agreed amount for a service or outcome rather than paying for time spent.

AI may help firms handle more work and reduce turnaround time, but clients may expect the savings to be reflected in legal fees.

Junior lawyers may also be affected because they often handle research, document review and other routine work. Law firms may need to train them more in critical thinking, negotiation, strategy and professional judgment.