Lynda ArtesaniLegal Accountant and Data Migration Specialist at The Proper Trust

Unlocking Business Efficiency - The Power of Metrics Visibility

21 Jan 2025 · 1 min

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1:12

In this talk, the speaker emphasizes that firms can only close performance gaps when they have clear visibility into key metrics. Using an insurance defense firm as a case study, they explain that insurance carriers collect extensive granular data—such as time entries and case duration—from law firms submitting work. Carriers leverage this data to justify cutting legal bills, effectively driving market pressure. The speaker notes that, in the AI era, carriers are beginning to argue that many tasks could be performed by AI, further threatening billable hours. Consequently, law firms must adopt more efficient, AI‑enabled methods or risk profitability declines. The overall message is that metric transparency and AI adoption are essential for firms to remain competitive and profitable.

Chapters

You can only close the gap when you have visibility on those metrics. So I think it's just, you know, from the reporting standpoint, having data is something that's new to a lot of these firms. But let's face it, at the end of the day, like for example, in this particular firm, it's an insurance defense firm. They have, the carrier, the insurance carriers have tremendous amounts of data. They get data from all of the, you know, the firms who are submitting work. Mm-hmm. They can see time entries, they can see, all of this granular information around how long these cases are actually taking. And you better bet they are using it in order to justify why they're going to cut down your bill, right? And that's why they're driving the market. Yes. So, and it's interesting too, because from the perspective of, you know, we're in this age of AI, there's where I'm already seeing this with my clients, where insurance carriers, it's starting with them, they're actually pushing back and saying, these tasks could have been done by AI. So therefore, we're going to cut down the time that you spent. So the firm has to either adjust and start using more efficient methods like AI or continue with the previous methods, but know that their profitability is going to take a hit.