Guest post: The AI bill many law firms haven’t priced in
Legal IT Insider
1mo · 12 min
By James Harrison Most firms buying legal AI are buying on a per-seat licence. That unit is on its way out.
Most firms buying legal AI are buying on a per-seat licence. That unit is on its way out.
Legora has moved its Agent Pro product to consumption pricing and Harvey’s co-founder, Gabe Pereyra, has been direct about where that leads: “customers are going to start getting these consumption bills of $10 million, and they’re going to ask, ‘What did my agent do that cost me $10 million?'” Harvey reports that token usage is up fourteenfold in six months. Pereyra cites Uber burning through its annual coding token allocation in just four months.
These numbers are easy to check. At today’s rate, a drafting query will cost around £15 worth of tokens. Reviewing 100,000 contracts runs to around £15,000.
A seat licence allows access and an agent consumes compute. Those two stop being the same product when a tool is allowed to run unsupervised across a dataset, and every vendor roadmap I’ve found so far points that way.
I have never known law firm boards this engaged in what is ostensibly an IT transformation. It’s a different level of interest compared with PMS and case management projects. With AI, they can’t get enough.…
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