By Julie Bays, OBA Management Assistance Program Director

Every time a new technology shows up in the legal world, someone declares the billable hour officially deceased. We heard it with email. We heard it with document automation. And now we’re hearing it again with generative AI.

The truth? Technology changes how we practice law. It does not eliminate the need for lawyers. What it does do is force us to take a fresh look at how we price what we do.

One pricing model that continues to gain traction is the flat fee. A recent article in Attorney at Work makes a persuasive case that flat fees are not just a marketing tactic. They can be smart business. The author suggests building in a reasonable margin, such as 20 percent above your internal cost estimate. That is not about overcharging. It is about recognizing the value, expertise, predictability and risk you are taking on for the client. You can read the full article here: https://www.attorneyatwork.com/flat-fee-pricing-for-legal-services-add-20-percent/

Why Flat Fees Appeal to Clients (and Lawyers)

Clients like certainty. When they know the price up front, they are more comfortable moving forward. There are fewer surprises and fewer awkward conversations about invoices.

Lawyers often benefit too. Flat fees encourage efficiency. If you can complete the work well and efficiently, that is a win. You are also not tied to tracking every six-minute increment, and cash flow is often more predictable.

Flat fees work especially well for matters that are relatively predictable: estate planning packages, uncontested family matters, straightforward business formations, standard document drafting or clearly defined project work. They also pair nicely with limited-scope or unbundled services, which can expand access to legal help for clients who might otherwise walk away.

What About AI and “Faster” Work?

As more lawyers incorporate AI tools into their practices, the pricing conversation has become more interesting. If a task takes less time because you used technology, does that automatically mean the fee should be lower?

In November 2025, the Supreme Court of Virginia approved Legal Ethics Opinion 1901, which addresses reasonable fees and the use of generative AI. The opinion makes a crucial point. The reasonableness of a fee under Rule 1.5(a) is not based solely on how long something takes. Factors such as skill, experience, complexity and results still matter.

The opinion does not require a lawyer to reduce a flat fee simply because the work was completed more efficiently with AI. Efficiency does not erase value. What remains critical is transparency. Lawyers must be able to explain the basis of their fee and ensure it is reasonable under the circumstances.

You can read the full opinion here:
https://www.vacourts.gov/static/courts/scv/amendments/leo_1901.pdf

Bottom Line

The billable hour is not going away anytime soon. But it is no longer the only way to think about pricing legal services.

In a world where technology allows us to deliver work more quickly and consistently, clients are often focused less on how long something takes and more on what they receive. Flat fees can align expectations, reward efficiency and support a sustainable practice.

Perhaps it’s not yet time to abandon the billable hour, but it could be worth considering some alternatives alongside it.