
In a recent webinar hosted by Gary and Jared as part of the Best in Class Law Firm series, legal professionals gathered to explore one of the most pressing challenges in the industry: improving law firm profitability. With a focus on practical strategies, AI integration, and performance metrics, the session offered clear, actionable insights for law firms looking to thrive in today’s competitive market.
Understanding the Role of AI in Law Firms
AI is transforming the legal landscape—but only for firms that learn how to use it effectively. Gary and Jared kicked off the discussion by addressing AI’s immense potential as well as its pitfalls. They emphasized that while AI can draft documents, manage data, and even assist with billing, it still requires human supervision, clear usage policies, and strategic integration into daily workflows.
Jared likened managing AI to parenting: the better your instructions, the better the outcome. Firms that guide their teams on how to responsibly use these tools can unlock new levels of productivity and profitability.
Rethinking Legal Services for the AI Era
With AI automating routine tasks, the traditional billable hour model may no longer serve firms or clients efficiently. Jared suggested alternatives like flat fees or subscription models, encouraging lawyers to shift from time-based billing to value-based services. Gary echoed this sentiment, urging firms to enhance the client experience by delivering more comprehensive solutions rather than charging for document generation alone.
Making Profitability a Firm-Wide Focus
One of the most powerful ideas presented was the concept of treating every staff member—and even each office location—as a profit center. Gary and Jared advocated for radical transparency and gamification to improve accountability, performance, and motivation across the board. Gary shared a successful profit-sharing strategy that encouraged self-regulation among lawyers and minimized uncomfortable conversations around productivity.
Closing the Profitability Gap
Law firms that run efficiently can earn an additional $100,000 per lawyer annually—equating to millions over a career. Despite this, many lawyers remain reluctant to focus on profitability. Jared attributed this to fear and decision fatigue around topics like hiring and marketing. However, once firms see the benefits of profitability-driven decisions, momentum builds—and success follows.
Improving Public Perception Through Client Service
Lawyers consistently rank low in public perception surveys, even below some stigmatized professions. Gary and Jared argued that improving customer service is one of the easiest ways to boost both reputation and revenue. They encouraged firms to adopt basic math and simple tools to monitor financial health. One such resource is the Law Firm Report Card, which benchmarks firm metrics and offers strategic recommendations for improvement.
Smarter Marketing, Smarter Growth
Marketing was another focal point, with Jared emphasizing consistent content creation and engagement—particularly on LinkedIn—as a low-cost, high-impact strategy. Gary, meanwhile, warned against blindly investing in paid marketing without a clear ROI. Networking, they agreed, remains one of the most effective tools, provided it’s done with intention and time awareness.
Jared also discussed digital marketing trends, advising firms to vet agencies based on their ability to implement multi-channel strategies that go beyond outdated SEO tactics. Meanwhile, Gary emphasized branding the lawyers, not just the firm, particularly in niche practice areas.
Measuring What Matters
The webinar wrapped with a discussion on law firm performance metrics—capacity, utilization, realization, and collections. Jared emphasized setting achievable meeting goals to support financial health, while Gary urged firms to assess their existing workflows before attempting automation. AI tools can enhance efficiency, but only if firms understand their baseline first.
Final Thoughts
Gary and Jared’s webinar underscored a simple truth: profitability doesn’t have to be complicated. With the right mindset, tools, and strategies, law firms of any size can leverage AI, rethink service models, and improve both client satisfaction and financial performance.
Whether you’re a managing partner or a legal administrator, the key takeaway is clear: stay curious, stay strategic, and never stop measuring what matters.