Exclusive | Baker McKenzie Looks to Abandon the Billable Hour

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, November 13, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

Baker McKenzie has transitioned to a value-based billing model as its default approach, moving away from traditional hourly rates, according to Global Chair Sunny Mann. The firm is integrating artificial intelligence to accelerate legal services, which Mann argues makes time-based charging less appropriate. He stated that the company is encouraging lawyers to prioritize alternative fee arrangements, though hourly billing remains available in specific instances. Mann believes this shift will increase the speed and volume of transactions while potentially lowering litigation costs, which could lead to higher demand for legal disputes.

Background

• The legal industry has historically relied on hourly billing, a practice often criticized for high costs and demanding workloads.
• Mann noted that AI is streamlining processes such as due diligence and contract drafting, altering the traditional workflow.
• The firm has begun incorporating AI competency assessments into its hiring interviews and employee performance reviews.
• Mann described the industry as becoming more technology-centric and value-driven, a trend he expects to spread among other law firms.

Read the full article at wsj.com

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