In a significant call for change in the legal industry, Amitabh Lal Das, General Counsel at Hyundai Motor India, has suggested that law firms should adjust their billing practices in light of artificial intelligence (AI) efficiency. Speaking at a panel discussion in New Delhi on August 17, Das emphasized that companies should no longer be charged for the same number of hours when AI tools enable lawyers to complete research and tasks more swiftly.
Efficiency in Legal Practice
The discussion, titled ‘AI and Legal Practice: Opportunity, Trust and Accountability,’ was organized by the Legal Tech Committee of the Internet and Mobile Association of India (IAMAI). Das pointed out that with AI, the need for extensive man-hours for research should decrease, consequently reducing external legal expenditures for companies.
He highlighted the frequency with which sectors like technology and automotive encounter unique legal challenges, often requiring external law firms to conduct in-depth research. Traditionally, clients have borne the cost of this learning curve. Das stated, “In the past, you were learning at my cost. Now, with AI, if you know how to use it for research, then please use it. Don’t charge me for it.”
The Changing Dynamics of Legal Fees
Das further noted that AI could streamline various other tasks performed by associates. He stressed that law firms should leverage AI to become more efficient, allowing clients to negotiate more favorable legal fees. “Therefore, I am expecting that the cost that I incur as a general counsel, and as a company, is going to come down because of that particular thing,” he added.
The panel, moderated by Arjun Sinha of AP & Partners, included inputs from Senior Advocate Chander Uday Singh and Advocate Harsh Kaushik. Sinha raised pertinent questions about the potential shift from traditional hourly billing to outcome-based or performance-linked billing models, given AI’s impact on reducing the time required for legal work.
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AI as a Legal Tool: Opportunities and Challenges
Singh acknowledged AI’s capacity as a robust tool for legal research, enabling access to a broad spectrum of material. However, he cautioned against over-reliance, noting AI’s tendency to generate misleading results. “Generative AI could hallucinate judgments,” Singh warned, urging lawyers to independently verify AI outputs.
Kaushik underscored the responsibility lawyers hold for the material they present in court or to clients, regardless of AI’s role in its preparation.
Regulatory Insights and Future Outlook
The event also featured a second panel discussing ‘Regulation, Innovation and the Digital Economy: Where Do We Draw the Line?’ moderated by Kaushik Moitra of Bharucha & Partners. Panelist Samar Bansal advocated for digital regulation based on objective rules to minimize regulatory discretion and potential misuse. Meanwhile, Karuna Nundy highlighted concerns over content takedowns bypassing legal safeguards, and Rajeev Nair discussed the implications of the Digital Personal Data Protection framework.
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The IAMAI event underscored the growing intersection of AI, legal practice, and regulation, pointing towards a future where technology reshapes traditional legal norms and practices.
