As legal fees continue to climb, corporate clients are increasingly reconsidering their reliance on external large law firms, known colloquially as 'Biglaw'. One significant voice in this shift is Jerry Levine, general counsel and chief evangelist at ContractPodAi, who shared his insights with Law.com. Levine highlighted a growing trend among corporations to manage more legal tasks internally and to be more selective about when and how they seek outside counsel.

"I’m definitely taking more work in-house and having law firms bid on specific projects. Previously, I might have sent something out to a firm by default. Now, I’m asking how far we can take it internally before turning to outside counsel," Levine explained. This approach not only allows companies to control costs but also encourages competition among law firms, potentially leading to more reasonable pricing.

Levine further noted that when external counsel is necessary, his preference has shifted towards smaller firms or regional offices of larger firms that charge lower rates than their big-city counterparts. "It’s often the same quality of attorney, but if I can pay Cincinnati rates instead of Manhattan rates, that matters," he added.

This strategic shift is part of a broader trend as companies across various industries express frustration over the escalating rates charged by major law firms. In response, many are enhancing their internal legal departments, investing in legal tech solutions, and scrutinizing the cost-effectiveness of every external legal engagement.

The move towards more fiscal prudence in legal services is a clear signal to the legal industry. Biglaw firms may need to rethink their pricing strategies and value propositions in order to maintain their client base in a market where cost-efficiency is becoming increasingly important. This trend is also likely to boost the market for legal technology tools that can streamline in-house legal processes, thus reducing the need for external counsel.

As corporations like ContractPodAi lead by example, the legal industry may see a significant transformation in how legal services are rendered and billed. This could herald a new era of legal service delivery that prioritizes efficiency and cost-effectiveness, aligning more closely with the financial goals of corporate clients.