Britain's “Financial Times” quoted in-house lawyers from Morgan Stanley and Citigroup as reporting that these banks have told law firms that they hope to establish new payment arrangements to save costs in the AI era. The report quoted two people familiar with the matter as reporting that Goldman Sachs had asked law firms how much they had saved by using AI, and hoped that the law firm would share the relevant benefits with them. Adam Meshel, head of global legal affairs at Citibank, said that if lawyers reduce the time required to process a business due to the use of AI, Citi expects “the cost of each transaction to drop drastically.” Citi has begun requiring law firms to bid on legal services and explains how much it has saved using AI. Meshel said that the “different operating models” established in this way may be in place within a year. Morgan Stanley's general counsel Eric Grossman said the law firm's current fee model has become “extremely unstable.”

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