AI Drives Shift in Legal Business Models, Says DayTwo Founder Chaduteau
Olivier Chaduteau of DayTwo predicts AI will break law’s reliance on the billable hour.
Why it matters: AI development is forcing law firms and legal departments to reconsider core pricing and service models. Legal leaders must act now to stay competitive, as value-based billing and tech-driven efficiency displace traditional practices.
- DayTwo, founded by Olivier Chaduteau, helps legal teams use AI to modernize operations.
- Chaduteau says AI separates legal value from time spent, undercutting the billable hour model.
- 67% of in-house teams and 55% of law firms expect AI will reduce hourly billing, per Wolters Kluwer.
- DayTwo builds custom AI tools—Legal Analyst, Benchmark, Solution, and Research—for legal decision-making.
AI is transforming legal business models, according to Olivier Chaduteau, founder of legal consulting firm DayTwo. Chaduteau’s experience, detailed in his 2026 book ‘L’impact de l’IA sur les juristes et les avocats d’affaires’, informs his belief that traditional billing models are now at risk.
- Chaduteau argues: “The time of the all 'hourly rate' as the sole compass for value creation, capture, and delivery is coming to an end, as AI mechanically dissociates value and time by accelerating production without necessarily degrading quality.”
- The 2024 Wolters Kluwer Future Ready Lawyer report reveals 67% of in-house teams and 55% of law firms foresee less reliance on hourly billing due to AI’s efficiencies; one in five expect major change.
- A 2025 Thomson Reuters survey finds 80% of law firm leaders expect AI to upend firm economics, pricing, and service delivery models.
- DayTwo deploys specialized AI agents—including Legal Analyst, Benchmark, Solution, and Research—that help legal teams automate analysis, benchmark performance, and identify operational improvements.
AI’s disruption is not limited to large firms. Daniel Farrar, CEO of Assembly Software, notes that small and mid-size firms are already using AI to grow operations and compete at scale. Robert Ambrogi, legal tech journalist, emphasizes the trend: “It is inevitable that GenAI will reshape firms’ business models in fundamental ways.” (read more).
Firms are already piloting value-based billing, AI-supported workflow redesign, and technology adoption strategies in response to these trends.
By the numbers:
- 67% — Legal departments expecting AI to reduce hourly billing (Wolters Kluwer, 2024)
- 80% — Law firm leaders who see AI fundamentally changing pricing/service models (Thomson Reuters, 2025)
Yes, but: Change will not happen overnight—many clients and firms remain entrenched in time-based billing practices.
What's next: Firms that invest early in AI tools and flexible pricing models may gain an edge as demand shifts. Ongoing surveys like Wolters Kluwer’s will track adoption rates.