Index · The billing question

How should a law firm bill for AI assisted work?

The rule that governs it is older than the technology and it has not moved: a fee has to be reasonable, and a lawyer bills for time actually spent rather than for time a task used to take. The American Bar Association addressed generative AI and fees directly in Formal Opinion 512 in 2024, and state guidance continues to arrive with differences on the points that decide the answer, so the applicable rule depends on the jurisdiction and the engagement letter rather than on anything a vendor says. What follows from the rule is practical: a product that turns six hours of review into one has changed the invoice, not only the workflow, and somebody has to be able to show which work the software did. That is where the market is quiet. Of 149 legal AI vendors recorded by the AI Legal Index, 117 advertise time savings in public material while publishing nothing about how that time should be treated on a bill, 0 publish both a per matter record of AI assisted work and guidance on billing or fee treatment, 8 emit a usable record with no fee guidance attached, and 24 address none of it.

The decision belongs to the firm and the rule that governs it belongs to the jurisdiction, so this page does not tell anyone how to bill and is not a substitute for the guidance that binds them. What an index can do is answer the part the guidance leaves open, which is whether the software makes an honest answer practical. Three published records decide that: whether the product can show what it did, whether the vendor has said anything about how to treat it, and whether the price is knowable without a sales call. The index records all three on every vendor.

Key takeaways
  • 117 of 149 vendors market time savings while publishing nothing about how that time should be treated on a client bill.
  • 8 emit a per matter record of AI assisted work, which is the artifact a firm needs before it can bill for it accurately or explain it to a client.
  • 0 publish both the record and guidance on fee treatment. That is the position with the least competition in this index.
  • 2 emit the record and also publish a price a firm could attach to it, which is the pairing that makes a pass through decision possible at all.

How does a firm know which work the software did?

Audit record only

Not by asking anyone to remember. A firm that wants to bill accurately for AI assisted work needs the work identified at the matter level, which means the product recording what it did, when, and against which matter, in a form that survives into a time entry or an invoice narrative. 8 of 149 vendors emit a record of that kind: Anaqua, Brightflag, Counsel Stack, InPractice, Legal Tracker, Mitratech, SimpleLegal and Vesence. Of those, 0 also publish guidance on how to treat it on the bill, which is the harder half, because it requires the vendor to have an opinion about its customer's revenue. The remaining 141 vendors leave the firm to reconstruct AI involvement after the fact, from memory, at the point where a client is asking why an entry says four hours.

The whole field, on one signal

Tier What it records Vendors
Record and guidance Per matter record of AI assisted work, plus published fee treatment guidance 0
Record only A usable record, no fee guidance located 8
Savings claims only Time savings marketed, billing treatment unaddressed 117
Not addressed Neither a record nor guidance located 24
Total Vendors carrying this signal 149

A signal records what public sources say on the date shown. It is not a grade and it is not a recommendation. Where a signal reads Not addressed, it means the index did not locate the material in public sources on that date, which is a statement about disclosure rather than about the product.

Overhead or disbursement

Can a firm pass this cost through if it cannot see the cost?

A firm cannot pass through, absorb or disclose a cost it cannot see. Deciding whether an AI tool is overhead recovered in the rate or a disbursement identified to the client turns on what the tool costs and what unit it is charged in, and the index grades that separately as Commercial Transparency. Of 149 vendors, 17 publish rates and the unit being charged, 31 publish enough to model a cost, 25 publish fragments, and 76 publish nothing without entering a sales process. Crossing the two records is where it gets pointed: 2 vendors both emit a record of AI assisted work and publish a price a firm could actually attach to it. 6 emit the record while keeping the price behind a sales conversation, which hands the firm an audit trail and withholds the number that would make it useful on an invoice.

A record of the work and a published price

AA on Commercial TransparencyA buyer can learn what this costs without entering a sales process: published rates, the unit being charged, and what implementation adds.

At the other end, 76 of 149 vendors publish no pricing information a buyer can reach without entering a sales process. Gated is not absent and is graded as its own tier here: a rate card behind a form that fulfils without a sales conversation counts, a rate that requires a call does not, because a firm answering a client this week experiences the second as unpublished.

The same record answers a second question

A per matter record of AI assisted work is built for the invoice, and it turns out to be the artifact a court asks for too. A growing number of judges require filers to state whether generative AI was used and to certify that citations were checked by a person, which means knowing which model produced which passage and who verified it. 1 of 149 vendors export a document level record covering all of that, 84 produce part of it, and 0 vendors satisfy both uses with the same record. The certifying signature belongs to the lawyer in both cases. The difference is whether the evidence behind it takes two minutes to produce or has to be rebuilt from memory under a deadline.

What the index cannot tell you

How to bill. That depends on the jurisdiction, the engagement letter, the client and the matter, and it is not a question an index answers. Nothing here is legal advice or fee advice. A vendor publishing nothing about billing treatment is a statement about that vendor’s disclosure and not about anyone’s compliance, and a vendor that publishes guidance has not thereby made any particular invoice reasonable.

The records reach only as far as public material, and an absence is dated: not located in public sources on the date shown, redated the day the vendor publishes. The reason the published position still matters is the one that runs through this whole index. A procurement call leaves no artifact, and an artifact is what a firm forwards to a client who has asked, reasonably, what the software did and what it cost.

Method and adjacent reads

Every record behind this page carries a source basis and a verification date. Standards and limits are on the methodology page. The obligations this sits inside are on what the bar rules require before a lawyer uses AI on client matters, the client facing disclosure question is on what happens to privilege when a law firm uses a third party AI tool, what the firm is buying underneath is on which legal AI vendors disclose which AI models they use, and the complete vendor set is in the directory.

Contact

Correct a record, or ask how something was graded

Every grade and every signal on this index is drawn from public sources and dated. If a record is wrong, out of date, or missing an artifact the index did not locate, send the source and it will be reviewed and the record redated. Vendors are welcome to submit documentation. Nothing on this index is for sale, including a listing, a placement, or a grade.

AI Legal Index

The AI Legal Index is an independent index that tracks changes to AI vendors in legal. It holds 61 vendors across 9 categories, each graded on the same 15 capability axes and recorded against 12 legal signals, from public sources. No vendor pays for inclusion, placement, or rating.

Index Status
Last index update
September 4, 2026
The AI Legal Index is an editorial reference. It is not a regulatory body, not a law firm, and nothing published here is legal advice or a recommendation to retain or avoid a vendor. Records are verified against published sources, bar guidance and public court records. Where a record reads not addressed, the material was not located in public sources on the date shown. See the Methodology page for evaluation standards and limitations.
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