Cooley chief says AI will force Big Law to rethink billing
Rachel Proffitt said law firms risk falling behind if they use AI only to cut costs rather than reshape pricing, training and client service.
By Hana Yoshida · Markets Reporter
3 min read
Cooley CEO Rachel Proffitt said artificial intelligence is pushing large law firms toward changes that go beyond faster document work or lower operating costs. In a Fortune commentary published June 23, Proffitt argued that firms that treat AI mainly as an efficiency tool could weaken the business model they are trying to protect.
Proffitt, who is also a partner at Cooley LLP, wrote that the legal profession has relied for decades on stable structures around compensation, billing, career development and growth. She said those systems have often been guided by precedent and market consensus while other industries changed more quickly.
According to Proffitt, AI is now challenging the foundations of Big Law because clients are putting more weight on speed, predictability and results tied to business needs. She said the billable hour has long measured effort, while clients care more about outcomes.
Pressure on the billable hour
Proffitt wrote that pricing in legal services will need to move closer to the value delivered to clients. She cited business or legal outcomes, lower risk, faster work and greater certainty as possible measures of that value.
The pace of change will differ across firms, Proffitt said, but she argued that time spent on a matter will become less central as the main measure of legal value. That shift would affect one of the core economic assumptions behind large law firms.
She also said AI is beginning to take on routine and repeatable legal tasks. In her view, that does not remove the need for lawyers, but it changes where lawyers contribute most and raises questions about how firms train junior attorneys.
Proffitt wrote that client relationships and professional judgment will become more important as technology takes over more standard work. She said successful firms will combine AI systems with legal expertise and client trust when handling complex problems.
Talent and competition
The Cooley chief said AI will affect how firms hire, train and keep lawyers. She described the technology as a force that can narrow some gaps between practitioners, while making it more important for younger lawyers to use new tools and preserve core legal skills.
Proffitt also pointed to rising competition from legal technology companies and AI-native firms. She said established law firms face the challenge of running businesses built around current structures while preparing for service models that are already changing.
In the commentary, Proffitt said many Big Law leaders have hesitated because of uncertainty around AI. She argued that waiting is no longer a useful posture for the profession and called for testing new approaches to service delivery, pricing, workflows and talent systems.
Proffitt said Cooley is committing to that shift and sees AI as a chance to change how the firm delivers value. Fortune identified the piece as commentary and said the views expressed were Proffitt’s own.
This story draws on original reporting from Fortune.