How much time are you wasting on repetitive tasks? What if you could significantly cut those hours, increasing your firm’s profitability? AI isn’t just a buzzword now—it’s a tool transforming the economics of running a law firm.
In this Financially Legal episode, host Emery Wager sits down with Tim Sawyer and Patrick Maddigan of Faster Outcomes to discuss AI's role in modern law firms and how firms can leverage technology to impact profitability.
Tim Sawyer, a serial entrepreneur with experience in digital marketing, health, and financial technology, highlighted the growing use of AI in law firms, particularly in the plaintiff’s space. He emphasized that AI is not about replacing lawyers but accelerating processes, improving accuracy, and increasing efficiency.
Patrick Maddigan, a third-generation lawyer with experience in both law firm and in-house settings, shared how AI has transformed legal workflows. He noted that AI is already embedded in everyday tasks, from email automation to legal research. However, the real game-changer is the emergence of AI agents—systems trained to perform specialized legal tasks at an advanced level. These agents can help lawyers scale their practices while maintaining high-quality legal work.
AI is changing law firm economics in three key areas:
AI automates repetitive tasks, slashing operational expenses.
Medical chronologies, which once cost firms hundreds of thousands of dollars, can now be processed by AI at a fraction of the cost.
AI-driven intake systems eliminate manual data entry, allowing firms to onboard clients faster.
AI enhances financial models, whether billable hour, subscription-based, or contingency fee structures.
Contingency firms benefit from AI-driven case preparation, automated demand letters, and document review, reducing per-case costs while increasing volume.
AI helps firms expand into new practice areas faster by analyzing case law and statutes more efficiently.
AI-powered marketing tools generate leads, create content, and maintain a strong digital presence with minimal effort.
Clients are becoming increasingly aware of AI’s capabilities. Just a few years ago, clients would ask lawyers if they were using AI with skepticism. Now, many expect law firms to leverage AI to increase efficiency and reduce costs. Firms that fail to adopt AI risk losing clients to competitors who offer faster, more cost-effective legal services.
Patrick noted that the shift toward flat-fee billing is being driven by client demand for transparency and efficiency. AI allows firms to set predictable pricing models while maintaining profitability.
With AI comes responsibility. While AI presents significant opportunities, it also raises ethical concerns. AI-generated legal work must be reviewed by human lawyers to ensure accuracy and to maintain professional responsibility. Tim emphasized the importance of maintaining a “human in the middle” approach—using AI to assist, not replace, legal professionals.
Moreover, law firms must carefully vet AI tools to ensure compliance with data privacy and attorney-client confidentiality requirements. Open-source AI tools, while useful, may pose security risks, making proprietary AI solutions a safer choice for law firms.
One of the more provocative ideas discussed in the episode was whether AI could enable a solo attorney to generate revenue at the level of an Am Law 100 firm. Tim and Patrick agreed that while AI can significantly boost efficiency and profitability, success ultimately depends on combining legal expertise with business acumen. A lawyer who effectively leverages AI for legal work, client acquisition, and referring out cases could theoretically build a large and highly profitable solo practice.
AI is already transforming law firms by cutting overhead, improving profitability, and creating new revenue opportunities.
Clients now expect firms to use AI for efficiency and cost savings.
Firms must balance AI adoption with ethical considerations and security protocols.
The most successful firms will be those that strategically leverage AI while maintaining strong human oversight.
For law firms looking to explore AI-driven solutions, platforms like Faster Outcomes offer affordable entry points, with tools starting at just a few hundred dollars per month. Whether streamlining intake, automating document review, or enhancing client communication, AI can provide significant value at every stage of the legal process.
To learn more about leveraging AI in your law firm, visit Faster Outcomes or listen to the full Financially Legal episode.
If you want to learn more or connect with Patrick Maddigan and Tim Sawyer, visit their website at FasterOutcomes.com or connect with them on LinkedIn. To explore more conversations at the intersection of finance and the business of law, follow Confido Legal on LinkedIn and listen to upcoming episodes of Financially Legal.