Moreover, solo and small firms have the lowest utilization rates in the industry – 27 and 32 percent, respectively – compared to around 50 percent for mid-sized law firms. They spend the least time on billable work because, as Lenon put it, “they wear many hats”: business development, client intake, administrative tasks, and more.
He suggests that AI could ease that burden by automating routine functions like drafting marketing emails, handling intake through chatbots, or generating first drafts for flat-fee matters.
“The blind spot seems to be in how they can leverage technology above and beyond the limitations of their staffing.”
Small firms and solo practitioners could use AI to streamline their legal and administrative work. Lenon says they are especially well-positioned to capitalize on AI’s productivity potential because they rely less on billable hours and more on flat fees.
This structure, he says, allows them to save time per client, increase output, and handle a more extensive client load without adding staff. As a result, they could enjoy a cumulative productivity advantage that mid-sized firms – still tied to hourly billing – are less able to realize.
