Economy has pushed over 50% of AU law firms to switch up their pricing models: study

AI adoption has been identified as a major priority for a significant percentage

Economy has pushed over 50% of AU law firms to switch up their pricing models: study

The current economic climate has pushed 51% of law firms in Australia to make changes to their pricing models, according to findings from a study conducted by Litera.

A whopping 88% of this group has switched to alternative fee arrangements (AFAs) for almost half or more of their work. Moreover, 50% of firms have been driven to identify cost-cutters and 46% to hike up fees in response to economic pressures.

In the coming 12 months, 80% of the study’s Australian respondents planned to incorporate AI-based solutions to bolster efficiency, profitability and overall value creation.

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“As the legal industry continues to evolve in response to technological advancements and shifting client expectations, it is imperative for legal professionals to remain abreast of emerging trends and adopt agile strategies to thrive in a dynamic landscape”, Litera APAC lead Stefan Steenveld said. “By embracing AI, AFAs, and innovative technology solutions, legal firms can position themselves for sustained success while delivering enhanced value to clients in an ever-changing environment”.

Across the globe, 55% of respondents have indicated plans to invest in fully connected or all-in-one tech platforms in the next 12 months.

 

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