Wall Street banks demand lower legal fees as AI boosts efficiency: FT
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4 Articles
Artificial intelligence is leading Morgan Stanley, Citigroup and Goldman Sachs to demand new payment schemes from large law firms, in a direct challenge to the pay-per-hour model. *** Morgan Stanley and Citigroup seek to bid for more issues and use fixed fees to reduce legal costs. Goldman Sachs asked for information on the efficiency savings that firms gain through artificial intelligence. Pressure already affects the hiring of young associates…
Wall Street Banks Are Pressing Law Firms to Cut Fees Because of AI
Goldman Sachs, Morgan Stanley and Citi are telling their outside law firms that AI has sped up routine legal work, and the bills should reflect it. Goldman has asked firms to quantify their AI savings and is using the number as leverage in fee negotiations, according to the Financial Times.
Major US banks are pressuring big law firms to lower their fees, arguing that the business model that has enriched top lawyers for decades is not sustainable in the age of artificial intelligence, the Financial Times reports, citing sources at Wall Street banks' lawyers.
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