AI suits are here
Academy
Empower your mind, elevate your skills
ETtech
Top legal firms leaning on GenAI tools are cautiously ushering in a radical reform of the profession as they wean away the traditional practice of billing clients by the hour to value delivered services. The legal sector, generally considered slow to adapt, is now actively experimenting with AI. While concerns around confidentiality, billing model, and hallucination persist, Indian law firms are mapping a careful path. This combination of human judgment and machine intelligence could reshape the economics and efficiency of legal practice, provided clients are willing to evolve with it. The transformation is not immediate. However, the growing role of AI in routine legal tasks such as contract drafting, document summarisation, and due diligence is beginning to challenge the very foundation of time-based billing.Partner of Mumbai-headquartered law firm Trilegal Nishant Parikh is seeing tangible improvements in due diligence tasks by using tools like Lucio. 'We follow a mix of hourly and flat-fee rates,' he said. 'Clients want faster results but aren't always willing to pay more. The market is still anchored to time spent. But ideally, I'd want value-based billing to become the norm.'Some firms are going further. Khaitan & Co. has developed its own AI platform, KAI (Khaitan & Co. AI), with tools like ask.KAI and KAI.query for internal research, drafting, and workflow automation.'Faster analysis and automated document parsing are already showing results,' said Haigreve Khaitan, senior partner. 'But it's still early to attribute billing changes solely to AI. We remain flexible in our structures, but our current billing still depends on complexity, practice area, and client needs.'Firms are clear on their stand that 'AI is an assistant and not a replacement'. 'The 'lawyer in the loop' model is fundamental,' Khaitan emphasised. Kartik Ganpathy, founding partner at IndusLaw, also believes AI brings efficiency but not necessarily savings, at least not yet. 'The technology comes at a cost. Clients expect us to deliver faster, but they're not willing to pay more. We're not seeing profit margins increase yet, but maybe in 4-5 years,' that may change.IndusLaw allows only experienced lawyers to use GenAI tools, citing prompt quality as a key factor. 'You need at least 2-3 years' experience to get the best results from these tools,' he said. 'About 50-60% of larger firms already use GenAI tools, at least to some extent. 'These tools have been tested thoroughly,' according to Parag Srivastava, partner at Bombay Law Chambers. While BLC is still in the early stages of GenAI adoption, the firm recognises the potential. 'Due diligence has been streamlined massively. But billing models are still hybrid, a mix of hourly, flat, and blended fees. We'll only see a shift to value-based billing if clients see measurable gains.' ButAI hasn't yet moved the needle significantly on profitability. 'We don't make much on diligence work,' Parikh admitted. 'Margins are still very, very low.' Finally, client-side adoption will be the real game changer. 'Right now, there's fixed pricing for some GenAI-driven tasks, which makes sense. But once clients start associating AI with better outcomes, not just faster ones, we'll see serious movement toward value-based billing,' said Vasu Aggarwal, cofounder, Lucio, a widely adopted GenAI legal platform.'The next 12 months are crucial. The Indian market is way ahead of its Western counterparts in GenAI adoption. If that momentum continues, pricing based on value delivered might become a competitive necessity,' added Aggarwal. 'Lucio is a horizontal legal AI platform but adapts vertically to specific needs,' said Aggarwal. 'The most prominent use cases are drafting and due diligence.' GenAI tools like Lucio can cut task time by up to 90% or 20% depending on the type of task. 'If drafting took 75 minutes before, it now takes 15. Summarising a document that took 40 minutes can be done in 10.'While AI hasn't been transformational yet, it's rapidly gaining traction, including in Tier-2 and Tier-3 cities.'Adoption will take its natural course,' said Aggarwal. 'Once that happens, the shift toward value-based billing will follow. Right now, there's no uniform model, but the mindset is changing.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
a few seconds ago
- Hindustan Times
Who is Krishangi Meshram? Indian-origin law prodigy making solicitor history in England and Wales
Krishangi Meshram, an Indian-origin scholar, has scripted history yet again as the youngest solicitor in England and Wales in recent times. Meshram, only 21, has now added another accolade to her already extraordinary journey, according to a report published in Open University News. Krishangi Meshram is presently looking for job opportunities in the UK and the UAE.(Screengrab/Open University) According to OU News, Meshram earned the title when she was just 21 years old. The report added that her story was published in The Law Society Gazette. Also read: Will Hurricane Erin hit Florida? Storm intensifies concerns along the East Coast Who is Krishnagi Meshram? Tracing the scholar's academic journey Born in India and brought up in the Iskcon Mayapur community in West Bengal, Krishangi began her remarkable academic journey at just 17. Meshram, who presently is residing in the United Arab Emirates, enrolled in a law degree with The Open University a few years ago. By the age of 18, she graduated with a First Class Honors Degree in Law, making her the youngest ever OU Law graduate. Meshram's passion for law began during her third year of study at OU when she participated in practical law modules. It was then that she realized a legal career was not just an ambition, but her true calling. Krishangi told OU News she was grateful that she got the opportunity to begin her LLB studies early. She added that starting early helped her lay the foundation of her legal career while discovering a deep passion for law. Also read: Optical illusion: Can you spot the hidden parrot in 10 seconds? Only 1 in 20 people can Krishnagi Meshram's early career and ambitions After graduating in 2022, Krishangi landed a role with an international law firm. She has already worked in Singapore and is currently exploring opportunities in the UK and the UAE, according to her LinkedIn profile. Her legal interests extend to areas like fintech, blockchain, and AI law. Meshram has expressed a desire to specialize in legal services for businesses and private clients, OU News stated. Speaking to the varsity news portal, she had earlier said, 'My next step will be to finalise my specialism. I'm hoping to help businesses and private clients with vital legal matters such as wills and probate, while also keeping an eye on emerging digital technologies.' FAQs Who is Krishangi Meshram? Krishangi Meshram is a 21-year-old Indian-origin law graduate and now the youngest solicitor in England and Wales in recent times. Where is she from? She lives in the UAE but originally studied at an international school in India before joining The Open University in the UK. When did she start studying law? She began her OU degree at the age of 15 and graduated at 18 with a First Class Honours degree.
&w=3840&q=100)
Business Standard
a few seconds ago
- Business Standard
India Inc growth stuck in slow lane; core earnings shrink in Q1FY26
The weakness was broad-based in Q1FY26, with the exception of energy-intensive commodity producers such as steelmakers, cement firms, and oil-marketing companies premium Mumbai Listen to This Article The more things change, the more they remain the same for corporate India. In the April-June 2025 period (Q1FY26) — for the ninth consecutive quarter — listed companies witnessed only single-digit revenue growth, while their core earnings, excluding other income and one-time gains, contracted for the second time in four quarters. This comes as firms brace for the impact of 50 per cent US tariff on Indian goods. The weakness was broad-based in Q1FY26, with the exception of energy-intensive commodity producers such as steelmakers, cement firms, and oil-marketing companies. Benefiting from lower energy costs, they managed double-digit profit growth despite
Time of India
15 minutes ago
- Time of India
US-bound students in a spot over visa as fall intake nears
Hyderabad: As the fall intake draws to a close, US-bound students are making a final scramble for visa slots. While some are reaching out directly to consulates, often with little success, those with confirmed appointments are seeing strong F1 visa approval rates. The rest, however, are hitting a wall, turned away under section 214B, which flags them as potential immigrants. "My college starts at the end of this month, and here I am, still refreshing the portal," said a 23-year-old planning to fly to Chicago for her MBA. "I've been waiting for three months now with no success. Everyone deferred their admission to Jan or scrapped their US plan altogether, but I remained hopeful, that too for nothing," she said. The number of Indian students in the United States grew significantly in the 2023-2024 academic year. India is now the leading sender of international students to the US. Indian students now contribute at least $8 billion to the US economy. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad | Gold Rates Today in Hyderabad | Silver Rates Today in Hyderabad City-based consultancies say that the small number of students who still kept their hopes high are met with disappointment. "This year, we could send only two students, who applied in April," said Sanjeev Rai from Hyderabad Overseas Consultant. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Investieren Sie in die Zukunft? Beginnen Sie hier eToro Learn More Undo He added, "They were also given 221g, which means their application was temporarily refused. They asked for their social media profiles and some more documents. Their visas were then finally approved in July. " Arvind Manduva from I20 Fever shared that about 100 to 150 of their students are still waiting, while those who applied before May have seen an approval rate of about 80%. "The rest have been given 214B. The enquiries for the US have almost stopped. Most of these students are now considering other destinations, with only a handful deferring their admission to the Jan intake," he added. In response, the US Consulate General Hyderabad shared that students can apply for visas up to 365 days before their course begins and are urged to apply as soon as possible. "Students can reapply if refused, though appointments are prioritised for those who haven't previously applied," said a spokesperson for the US Consulate General Hyderabad. "All visa applicants undergo comprehensive vetting against a wide array of classified and unclassified information held by US govt agencies to ensure that consular officers can verify the applicant's identity and identify any potential threats to US national security. After issuance, visa holders undergo recurrent vetting to ensure they remain eligible for a visa," the spokesperson further said. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
