🚀 Shout Out to Steve Embry: A Legal Tech Visionary Tackling AI's Billing Revolution!

Legal technology expert Steve Embry has once again hit the mark with his provocative and insightful article examining the collision between AI adoption and billable hour pressures in law firms. Writing for TechLaw Crossroads, Steve masterfully dissects the DeepL survey findings that reveal 96% of legal professionals are using AI tools, with 71% doing so without organizational approval. His analysis illuminates a critical truth that many in the profession are reluctant to acknowledge: the billable hour model is facing its most serious existential threat yet.

The AI Efficiency Paradox in Legal Practice ⚖️

Steve’s article brilliantly connects the dots between mounting billable hour pressures and the rise of shadow AI use in legal organizations. The DeepL study reveals that 35% of legal professionals frequently use unauthorized AI tools, primarily driven by pressure to deliver work faster. This finding aligns perfectly with research showing that AI-driven efficiencies are forcing law firms to reconsider traditional billing models. When associates can draft contracts 70% faster with AI assistance, the fundamental economics of legal work shift dramatically.

The legal profession finds itself caught in what experts call the "AI efficiency paradox". As generative AI tools become more sophisticated at automating legal research, document drafting, and analysis, the justification for billing clients based purely on time spent becomes increasingly problematic. This creates a perfect storm when combined with the intense pressure many firms place on associates to meet billable hour quotas - some firms now demanding 2,400 hours annually, with 2,000 being billable and collectible.

Shadow AI Use: A Symptom of Systemic Pressure 🔍

Steve's analysis goes beyond surface-level criticism to examine the root causes of unauthorized AI adoption. The DeepL survey data shows that unclear policies account for only 24% of shadow AI use, while pressure to deliver faster work represents 35% of the motivation. This finding supports Steve's central thesis that "the responsibility for hallucinations and inaccuracies is not just that of the lawyer. It's that of senior partners and clients who expect and demand AI use. They must recognize their accountability in creating demands and pressures to not do the time-consuming work to check cites".

This systemic pressure has created a dangerous environment where junior lawyers face impossible choices. They must choose between taking unbillable time to thoroughly verify AI outputs or risk submitting work with potential hallucinations to meet billing targets. Recent data shows that AI hallucinations have appeared in over 120 legal cases since mid-2023, with 58 occurring in 2025 alone. The financial consequences are real - one firm faced $31,100 in sanctions for relying on bogus AI research.

The Billable Hour's Reckoning 💰

How will lawyers handle the challenge to the billable hour with AI use in their practice of law?

Multiple industry observers now predict that AI adoption will accelerate the demise of traditional hourly billing. Research indicates that 67% of corporate legal departments and 55% of law firms expect AI-driven efficiencies to impact the prevalence of the billable hour significantly. The legal profession is witnessing a fundamental shift where "[t]he less time something takes, the more money a firm can earn" once alternative billing methods are adopted.

Forward-thinking firms are already adapting by implementing hybrid billing models that combine hourly rates for complex judgment calls with flat fees for AI-enhanced routine tasks. This transition requires firms to develop what experts call "AI-informed Alternative Fee Arrangements" that embed clear automation metrics into legal pricing.

The Path Forward: Embracing Responsible AI Integration 🎯

Steve’s article serves as a crucial wake-up call for legal organizations to move beyond sanctions-focused approaches toward comprehensive AI integration strategies. The solution requires acknowledgment from senior partners and clients that AI adoption must include adequate time for verification and quality control processes. This too should serve as a reminder for any attorney, big firm to solo, to check their work before submitting it to a court, regulatory agency, etc. Several state bars and courts have begun requiring certification that AI-generated content has been reviewed for accuracy, recognizing that oversight cannot be an afterthought.

The most successful firms will be those that embrace AI while building robust verification protocols into their workflows. This means training lawyers to use AI competently, establishing clear policies for AI use, and most importantly, ensuring billing practices reflect the true value delivered rather than simply time spent. As one expert noted, "AI isn't the problem, poor process is".

Final Thoughts: Technology Strategy for Modern Legal Practice 📱

Are you ready to take your law practice to the next step with AI?

For legal professionals with limited to moderate technology skills, the key is starting with purpose-built legal AI tools rather than general-purpose solutions. Specialized legal research platforms that include retrieval-augmented generation (RAG) technology can significantly reduce hallucination risks while providing the efficiency gains clients expect. These tools ground AI responses in verified legal databases, offering the speed benefits of AI with enhanced accuracy.

The profession must also recognize that competent AI use requires ongoing education. Lawyers need not become AI experts, but they must develop "a reasonable understanding of the capabilities and limitations of the specific GAI technology" they employ. This includes understanding when human judgment must predominate and how to effectively verify AI-generated content.

Steve's insightful analysis reminds us that the legal profession's AI revolution cannot be solved through individual blame or simplistic rules. Instead, it requires systemic changes that address the underlying pressures driving risky AI use while embracing the transformative potential of these technologies. The firms that succeed will be those that view AI not as a threat to traditional billing but as an opportunity to deliver greater value to clients while building more sustainable and satisfying practices for their legal professionals. 🌟

ILTACON 2025 Attendance Forces Postponement of Exciting TSS - Preparing Old Office Tech for Your Kids' Back-to-School Success 📚💻

Dear Tech-Savvy Saturday Community,

Due to my attendance at ILTACON 2025 (August 10-14, 2025) at the Gaylord National Harbor Convention Center this week, this month's Tech-Savvy Saturday session originally scheduled for August 16 has been postponed until Saturday, August 23, 2025 at 12 PM EST 🕐.

This postponement presents the perfect opportunity to dive deeper into our upcoming topic: "Preparing Your Old Office Technology for Your Kids' Back-to-School Success." As legal professionals, we often have reliable office equipment that could serve our children well as they return to school. This session will explore practical strategies for repurposing scanners, laptops, printers, and other office technology to create productive learning environments at home.

Our session will cover device preparation techniques, security considerations for family use, and creative ways to transform professional equipment into educational tools. We'll discuss how to properly clean and configure devices, implement age-appropriate restrictions, and ensure data security when transitioning office equipment to personal.

Stay tuned and mark your calendars for Saturday, August 23, 2025 as we explore this practical intersection of legal technology and family needs 📅✨.

Have a Great Weekend and Stay Tech-Savvy!

🚨 MTC: “Breaking News” Supreme Court DOGE Ruling - Critical Privacy Warnings for Legal Professionals After Social Security Data Access Approval!

Recent supreme court ruling may have placed every american’s pii at risk!

Supreme Court DOGE Ruling: Critical Privacy Warnings for Legal Professionals After Social Security Data Access Approval

Last Friday's Supreme Court ruling represents a watershed moment for data privacy in America. The Court's decision to allow the Department of Government Efficiency (DOGE) unprecedented access to Social Security Administration (SSA) databases containing millions of Americans' personal information creates immediate and serious risks for legal professionals and their clients.

The Ruling's Immediate Impact 📊

The Supreme Court's 6-3 decision lifted lower court injunctions that had previously restricted DOGE's access to sensitive SSA systems. Justice Ketanji Brown Jackson's dissent warned that this ruling "creates grave privacy risks for millions of Americans". The majority allowed DOGE to proceed with accessing agency records containing Social Security numbers, medical histories, banking information, and employment data.

This decision affects far more than government efficiency initiatives. Legal professionals must understand that their personal information, along with that of their clients and the general public, now sits in systems accessible to a newly-created department with limited oversight.

Understanding the Privacy Act Framework ⚖️

The Privacy Act of 1974 was designed to prevent exactly this type of unauthorized data sharing. The law requires federal agencies to maintain strict controls over personally identifiable information (PII) and prohibits disclosure without written consent. However, DOGE appears to operate in a regulatory gray area that sidesteps these protections.

Legal professionals should recognize that this ruling effectively undermines decades of privacy protections. The same safeguards that protect attorney-client privilege and confidential case information may no longer provide adequate security.

Specific Risks for Legal Professionals 🎯

your clients are not Alone Against the Algorithm!

Attorney Personal Information Exposure

Your personal data held by the SSA includes tax information, employment history, and financial records. This information can be used for identity theft, targeted phishing attacks, or professional blackmail. Cybercriminals regularly sell such data on dark web marketplaces for $10 to $1,000 per record.

Client Information Vulnerabilities

Clients' SSA data exposure creates attorney liability issues. If client information becomes publicly available through data breaches or dark web sales, attorneys may face malpractice claims for failing to anticipate these risks. The American Bar Association's Rule 1.6 requires lawyers to make "reasonable efforts" to protect client information.

Professional Practice Threats

Law firms already face significant cybersecurity challenges, with 29% reporting security breaches. The DOGE ruling amplifies these risks by creating new attack vectors. Hackers specifically target legal professionals because they handle sensitive information with often inadequate security measures.

Technical Safeguards Legal Professionals Must Implement 🔐

Immediate Action Items

Encrypt all client communications and files using end-to-end encryption. Deploy multi-factor authentication across all systems. Implement comprehensive backup strategies with offline storage capabilities.

Advanced Protection Measures

Conduct regular security audits and penetration testing. Establish data minimization policies to reduce PII exposure. Create incident response plans for potential breaches.

Communication Security

Use secure messaging platforms like Signal or WhatsApp for sensitive discussions. Implement email encryption services for all client correspondence. Establish secure file-sharing protocols for case documents.

Dark Web Monitoring and Response 🕵️

Cyber Defense Starts with the help of lawyers!

Legal professionals must understand how stolen data moves through criminal networks. Cybercriminals sell comprehensive identity packages on dark web marketplaces, often including professional information that can damage reputations. Personal data from government databases frequently appears on these platforms within months of breaches.

Firms should implement dark web monitoring services to detect when attorney or client information appears for sale. Early detection allows for rapid response measures, including credit monitoring and identity theft protection.

Compliance Considerations 📋

State Notification Requirements

Many states require attorneys to notify clients and attorneys general when data breaches occur. Maryland requires notification within 45 days. Virginia mandates immediate reporting for taxpayer identification number breaches. These requirements apply regardless of whether the breach originated from government database access.

Professional Responsibility

The ABA's Model Rules require attorneys to stay current with technology risks. See Model Rule 1.1:Comment 8.  These rules creates new obligations to assess and address government data access risks. Attorneys must evaluate whether current security measures remain adequate given expanded government database access.

Recommendations for Legal Technology Implementation 💻

Essential Security Tools

Deploy endpoint detection and response software on all devices. Use virtual private networks (VPNs) for all internet communications. Implement zero-trust network architectures where feasible.

Client Communication Protocols

Establish clear policies for discussing sensitive matters electronically. Create secure client portals for document exchange. Develop protocols for emergency communication during security incidents.

Staff Training Programs

Conduct regular cybersecurity training for all personnel. Focus on recognizing phishing attempts and social engineering. Establish clear protocols for reporting suspicious activities.

Looking Forward: Preparing for Continued Risks 🔮

Cyber Defense Starts BEFORE YOU GO TO Court.

The DOGE ruling likely represents the beginning of expanded government data access rather than an isolated incident. Legal professionals must prepare for an environment where traditional privacy protections may no longer apply.

Consider obtaining cybersecurity insurance specifically covering government data breach scenarios. Evaluate whether current malpractice insurance covers privacy-related claims. Develop relationships with cybersecurity professionals who understand legal industry requirements.

Final Thoughts: Acting Now to Protect Your Practice 🛡️

The Supreme Court's DOGE ruling fundamentally changes the privacy landscape for legal professionals. Attorneys can no longer assume that government-held data remains secure or private. The legal profession must adapt quickly to protect both professional practices and client interests.

This ruling demands immediate action from every legal professional. The cost of inaction far exceeds the investment in proper cybersecurity measures. Your clients trust you with their most sensitive information. That trust now requires unprecedented vigilance in our digital age.

MTC