# Potential for Higher Margins and Competitive Advantage with AI at Biglaw

> Note: This article is just one of 60+ sections from our full report titled: The 2024 Legal AI Retrospective - Key Lessons from the Past Year .

**Author:** Alex Denne  
**Category:** Insights  
**Published:** 2024-12-18  
**Reading time:** 3 min

**Note:** This article is just one of 60+ sections from our full report titled: [The 2024 Legal AI Retrospective - Key Lessons from the Past Year](https://www.genieai.co/blog/legal-ai). Please download the full report to check any citations.

**Challenge:** Adapting billing models and maintaining competitive advantage with AI

Once the billable hour issue with AI is resolved through fixed/value-based pricing, BigLaw firms can potentially realize higher margins on their work. Firms that embrace AI most effectively are likely to:

 • Offer higher salaries to attract top talent
 • Increasingly require AI experience from new hires
 • Gain a competitive edge over firms that lag in AI adoption

Clifford Chance's partnership with Orbital Witness saved 350 hours on one project.[117] Real Estate Law aside, Biglaw and industry-specific legal tech partnerships can also act as a competitive advantage vs smaller industry-specific law firms they might compete with locally, as they can:

 • Reduce hours billed
 • Enhance the accuracy and depth of analysis
 • Put the time savings into forging lasting relationships with their clients

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