There are ways of making decisions that you haven't even imagined
Everywhere you turn, there’s a discussion of Artificial Intelligence and how it’s going to change everything. We hear about how AI is going to affect the legal industry and try to understand what that means. Is AI going to replace lawyers? What are the ethical considerations of using AI?
There is actually a way that AI can be used to address firm management issues and propel law firm profitability. Consder the questions that law firm leaders want to answer. Here are a few that we hear all the time:
1. If we hire a particular lateral partner or group, will they succeed?
2. Can we reduce the turnover of lawyers and other critical professionals?
3. How do we determine if we should respond to a particular RFP?
4. How should we price work so that the matter will be profitable for the firm?
5. Do we have target prices for certain kinds of work?
6. How should a team be structured to generate more revenue from existing clients?
7. Can we improve our predictions about the outcome of cases?
Clients have comparable questions.
For over 20 years I’ve brought proven business practices to the legal profession. These are tactics that firms use to execute their strategy, including legal project management, pricing, and profitable fee structures.
Business practices all rely on data to inform decision-making. But utility of the data is limited when there are concerns about its quality. There gaps in how data has been captured. Do the people who do the analysis and reporting have relevant skills? There is a form of AI that has a 20-year track record and that is not complicated or expensive. Nor does it require complete data sets.
We call it Predictive Legal Economics – it combines sound economic judgments with established quantitative analysis. We have adapted a proven methodology to the unique needs of law firm management. It goes beyond intuition and consensus so that strategy is based on models that propel law firm profitability.
It's the same AI that’s been used in other industries:
1. Health care: to helped improve patient outcomes by more accurately choosing a treatment protocol.
2. Pharma: to determine how to place its bets in spending billions of R&D dollars. How did they determine which combination of chemical compounds would produce life-saving drugs?
3. Automotive: to support the hard choices in a its turnaround by figuring out the trade-offs between safety, compliance and personnel costs.
4. Consulting: to set target fees for particular types of engagements.
In the legal industry, business models seem to break as soon as they are developed. Revenues may grow, but profits are under relentless pressure. Laterals keep moving for the best opportunity, which adds to disruption.
What are your questions? The right answers can increase your revenues and profits. The right answers can also reduce your expenses and write-offs. All impact your profitability and client satisfaction. Predictive Legal Economics uses an engine that was developed by Decision Options http://decisionoptions.info/
Ask us to evaluate whether we can make a difference for you.