Alex Herrity at the Law://WhatsNext publication has a good piece (linked below) on AI use in legal and its token costs.
Two excerpts worth noting from Alex's article:
"My main thought is this. Tokens and consumption, especially as we move towards agentic systems, should be high on the list of considerations as we build business cases and architect the legal teams of the future. And I would be cautious about the big, irreversible bets. Before you decide to let five people go, or rewire an entire process around AI, factor in the instability. Token pricing is volatile, true consumption is often unclear, and the cost base you model today may look very different in two or three years. By all means make the bet. Just don’t make it blind to a key variable that is still in flux."
And this excerpt (which made me chuckle a bit):
"Taking a step back, tokens in their guise as a cost unit have an inherent problem: they simply measure consumption, not quality. They’re not hugely dissimilar to the billable hour, in that they track the thing that is easily measurable. If a lawyer spends a hundred hours, or an AI uses a billion tokens, that does not mean the desired outcome was necessarily achieved, or good value for money. This should give legal a particular pause. We have spent years, decades even, picking apart the billable hour precisely because it rewards time spent over value delivered. It would be quite something to win that argument only to wander straight into a new metric with the very same flaw, having apparently learned nothing."
But please do read Alex's entire article, found at this link:
lawwhatsnext.substack.com/p/…
#legaltechnology #legaltech