The No. 8 firm in the Am Law 100 “has begun charging clients on a value-based billing model,” rather than on the legal industry’s default standard of hourly rates. For Chicago-based Baker McKenzie, the driver—not surprisingly—is a pivot “toward solutions aided by technology and the use of AI.” The Wall Street Journal has the story.
Baker McKenzie anticipates leveraging the time savings from technology to increase “the speed and volume” of legal work. More matters could mean more elite legal services supplied across more clients—including, potentially, pro bono clients. But, as Baker McKenzie’s chair notes, lower litigation costs also could lead to, well, more litigation.
Finally, Baker McKenzie is evaluating AI competency in hiring and performance reviews—a signal for legal education about evolving professional expectations. Links and excerpts, below the fold.
Aimee Look, Baker McKenzie Looks to Abandon the Billable Hour as Default, Wall Street Journal (Nov. 13, 2026):
“The hourly rate isn’t the right metric,” [Baker McKenzie Global Chair Sunny] Mann said in an interview. “I think it’s a trend that you’ll see across the legal industry.” . . .
Mann sees AI changing the industry by speeding up the cycle of work. . . . This could increase the speed and volume of deals that happen at a given time.
The cost of litigation could drop—which might mean greater appetite for it, Baker McKenzie’s chair said.
Related TaxProf Blog coverage:
- Is AI a Substitute for or a Complement to Billable Hours? (Sep. 19, 2026)
- McGinnis: AI and the Unbundling of Legal Education (June 28, 2026)
- Legalweek New York: AI and the Billable Hour (Mar. 21, 2026)
- Will AI End the Billable Hour, Finally? (Dec. 27, 2025)
