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New in the world of law

Billing in the Age of AI: A Practical Guide for Law Firms

The challenge of law firm billing has never been the work itself: it’s about capturing it. Lawyers often face the same problems: late-night entry marathons, vague narratives that invite clients to turn away, or forgotten calls and emails that leave money on the table.

AI-based timing platforms promise to fill these gaps. Early adopters have reported saving 10-30% more billable time, reducing narrative writing time by over 90%, and improving compliance with client billing guidelines. A litigation firm discovered that AI was surfacing dozens of short calls each month from clients who were previously unbilled, adding tens of thousands of dollars in quarterly revenue. Another specialist company improved its completion rates once AI-generated stories were consistently within guidelines, avoiding costly write-downs.

But as with any new technology, the details matter. Not all AI solutions are equal. Here are four factors businesses should consider when selecting a platform.

1. Integration based solutions or screen monitoring solutions

The vast majority of AI timing products today rely on screen monitoring. They capture screenshots, keystrokes, or window activity to approximate what a lawyer was working on. Although these tools can collect data, they have two major drawbacks:

  • Imprecision: Screenshots and keystrokes don’t always capture the working context, leading to inaccurate or incomplete entries.
  • Invasiveness: Surveillance raises privacy concerns and can erode attorney trust, particularly when work spans personal and professional devices.

On our platform, we took a different approach. With one-click integration for Outlook, for example, email activity is captured across phone, desktop and tablet, without lawyers needing to install an app on each device. This transparent cover ensures accuracy while avoiding the intrusive nature of screen monitoring. Extending this model to calendars, document systems, conferencing tools and practice management software allows us to provide a complete and reliable record of billable work without additional overhead.

2. Legal technology that looks like consumer technology

One of the biggest barriers to adopting legal technology is ease of use. Too often, systems are designed with complexity in mind, requiring lengthy training sessions, thick manuals, or weeks of trial and error before lawyers can see the value.

The reality is that legal technology should aspire to the same usability standards as consumer technology. If someone can download an app at home and start using it immediately, they should be able to do the same in their business tools. A junior associate should be able to log in and get to work without assistance, while even a seasoned Luddite should feel comfortable navigating the basics. Training should be optional: not for basic operation, but to optimize advanced features.

When we created Billables AI, we drew on experience from industries where intuitive design is the norm, including Google, Pinterest, and consumer fintech. The goal was to create a platform that lawyers could use instantly, while still being powerful enough to handle the complexity of actual billing.

3. Complex AI reasoning for real-world billing

Capturing time is only part of the problem. The real challenge is ensuring that what is recorded is accurate, compliant and reflects the actual work carried out. This is where modern AI can make a significant difference for businesses.

First, AI can distinguish between what is billable and what is not, separating client-related work from non-professional tasks so that lawyers are not left with noisy or irrelevant activity logs. From there, the activity is tailored to the right client and case, sparing attorneys the constant burden of manual coding.

AI also helps deal with the complex realities of legal work, where context switching is constant. Imagine a lawyer who spends the morning writing a brief, takes breaks to call clients, and later sends follow-up emails. Traditional systems capture them in fragments, or ignore them completely. The AI ​​consolidates them into a single compliant entry without the lawyer having to reconstruct it at the end of the day.

Finally, the technology generates detailed, refined stories that meet customer billing guidelines, down to formatting or grammatical preferences that can determine whether an invoice is accepted or rejected.

In our work with businesses, we have found that this level of accuracy reduces administrative costs, reduces rework for billing staff, and minimizes the risk of invoice disputes. It’s less about indiscriminately capturing more hours and more about ensuring that every entry is accurate, defensible, and customer-ready.

4. Modern purchasing models for modern businesses

Technology decisions in law firms are traditionally shaped by rigid contracts: high minimum seat counts, long-term commitments, and costly vendor-led implementations. These barriers often prevented small businesses from accessing advanced tools or slowed their adoption by larger ones.

Today, the model is changing. Modern AI platforms offer flexible purchasing options that reflect the way businesses themselves operate: the ability to start small, grow as adoption grows, and choose between monthly or annual subscriptions based on budgetary needs. Self-service configuration has also become the norm, allowing businesses to be up and running in hours rather than months, with professional services reserved for fine-tuning rather than basic activation.

This flexibility is important. This reduces initial risk for companies testing new technologies and ensures that tools can scale as usage and value increase. Whether a boutique with five lawyers or a multi-office firm with hundreds of people, firms can adopt their strategy at their own pace without being locked into commitments that may not align with their growth trajectory.

We take this approach into our own software delivery model, designing a quick, self-contained setup, while giving businesses the freedom to buy only what they need and scale as they go. It is a model that reflects the direction the industry is heading: technology that is easier to adopt, easier to manage, and easier to align with the economic realities of law firms. This trend reflects the broader SaaS market, where businesses expect tools they can purchase flexibly, deploy quickly, and grow over time.

The Future of Legal Billing

AI in billing and timekeeping is more than a tool to recover lost hours: it represents a shift in the way the legal profession values ​​and records data. For too long, lawyers have been burdened with administrative tasks that distract them from the practice of law. By automating the capture, organization and presentation of time, AI has the potential to free up lawyers to focus on higher value work while ensuring firms are compensated fairly for their efforts.

The future of legal billing won’t be about chasing timesheets at the end of the month; these will be systems that operate silently in the background, surfacing accurate and compliant records of a lawyer’s contributions to cases and clients. This transformation can reshape not only the economics of the firm, but also the attorney-client relationship, bringing greater transparency, efficiency and trust.

HAS Billable AIour vision is to help accelerate this change: to show that timekeeping does not have to be tedious, contradictory, or error-prone, but rather can become an integral part of the practice of law. Firms that embrace this future won’t just reclaim more hours: they will redefine how legal work will be valued, performed, and trusted in the decades to come.

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