The Impact of AI on the Business of Law: Insights From SurePoint Chair and Legal Tech Investor Mike Suchsland

The Impact of AI on the Business of Law: Q&A with Legal Tech Investor and SurePoint Chair Mike Suchsland

We recently had the opportunity to speak with Mike Suchsland, Chair of SurePoint’s Board, about the transformative potential of AI within the legal industry. In addition to his leadership role at SurePoint, Mike is a seasoned investor in Legal Tech and former President of Legal Business at Thomson Reuters. As AI is poised to fundamentally reshape the way law firms operate, we sought Mike’s insights on where these changes will be most profound. Below are key highlights from our conversation, providing a glimpse into how AI is set to impact legal practice. 

Q: What effect is AI already having on the business of law today?
A: It’s well documented that AI is revolutionizing the practice of law by enabling firms to automate tasks such as document review, legal research, spend analysis, and even drafting legal narratives. These changes are apparent, but in addition to transforming the practice of law, AI is set to completely redefine the economic and operating models of law firms. AI tools perform complex work more quickly and accurately, with some technologies working at speeds up to 100 times that of human lawyers. This automation allows lawyers to focus on higher-level strategic tasks while reducing the time spent on routine processes, improving efficiency across the board. This shift in lawyer focus will challenge long-standing business practices and necessitate a strategic reevaluation of how legal services are delivered and priced.   

Q: Do you foresee AI leading to the elimination of the billable hour entirely?
A: It’s unlikely that the billable hour will become extinct; however, AI will absolutely diminish the dominance of the billable hour. We are already seeing a shift toward activity-based billing, where clients are charged based on the tasks completed rather than the time taken. This model allows firms to take advantage of AI’s efficiency gains while maintaining profitability. Firms that fail to adjust their billing models in response to AI's productivity-enhancing capabilities may find their profit margins shrinking as AI drastically reduces the billable hours required to complete certain tasks. 

Q: What are the key challenges law firms face in change management due to AI?
A: One of the biggest challenges is managing generational conflict within firms. Senior partners, often nearing retirement and therefore focused on short-term profits, may hesitate to make significant investments in technology. In contrast, younger partners are more enthusiastic about the long-term benefits of AI and more willing to fund innovation. Balancing these perspectives and guiding the firm through this transition requires strong leadership and strategic vision from managing directors. 

Q: Will AI be an equalizer for mid-size law firms to better compete with larger ones?
A: Absolutely. AI presents a major opportunity for mid-size and smaller law firms to level the playing field. Large firms typically have the resources to invest in cutting-edge technology that gives their firm a competitive edge, but with AI accessible in so many ways and at a wide range of price points, it will absolutely help smaller firms boost efficiency and offer innovative services at scale. By leveraging AI, smaller firms can improve productivity and offer services that compete with those of larger firms, allowing them to grow and attract new clients. 

Q: What new skills will lawyers need in an AI-driven industry?
A: Lawyers will need to develop greater technological proficiency. The lawyer's role is shifting from purely legal expertise to a hybrid of legal and tech-savvy competencies. Associates and partners alike need to become adept at using AI tools and understanding their implications on legal processes. In addition, we could see a new type of lawyer who is not only a legal expert leveraging AI capabilities but also advising clients on the safest and best use of AI and technology-driven solutions. 

Embracing the Future: AI's Transformative Impact on the Legal Industry
A: It's no surprise to hear from Mike that the long-term impact of AI on the legal industry will be transformative. It will change not just how law is practiced but how legal services are delivered, priced, and managed. Firms embracing AI will likely gain a competitive edge, improve efficiency, and increase profitability. Firms that resist may struggle to keep up with the rapid technological advancements and shifting client expectations driven by AI innovation. 

Interested in learning more about how AI is reshaping the legal landscape? Read more from Mike in The Most Profound Innovation: AI's Impact on the Business of Law on Law.com’s Legaltech News for additional insights on how law firms must adapt or risk falling behind in the age of AI.