Inflation: How AI Features Will Add to the Cost of Software

Legaltech software vendors are racing to add artificial intelligence features to their products as demand has grown for tools built for law practices – so that attorneys can shift from attempting to utilize (or attempting to avoid) general use products like ChatGPT.  And even if the demand for AI among lawyers has been somewhat overstated (which it probably has), lawyers will pay for AI services.

The real question is: How much?

Because what differentiates AI software from non-AI software is that technology companies are charging separately for AI tools.  And this has not been the case previously when lots of software features have been added to platforms at no additional cost.  When case management software providers had previously added proprietary or white-labeled esignature tools, that feature became part of the regular platform at the regular price.  When case management software providers built their own epayment tools, users still had to pay processing fees – but users still got a better deal because they no longer had to pay the platform fee for those products; instead, that was wrapped up into the product fee for the law practice management software.  But AI tools are being sold differently.  In some cases, a single use of an AI program costs more than the monthly payment for the law practice management software.

So the question becomes: Will lawyers pay for AI tools at that rate? Who knows?  Bu, the market will make the determination as to where this lands.

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If you want to talk about the value of AI-based tools for your practice, give us a call.

The Wyoming State Bar offers free law practice management consulting services through Red Cave Law Firm Consulting.

To request a consult, visit the Wyoming State Bar’s law practice management page, and start running your law firm like a business.

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