New York's state bar says lawyers cannot bill clients for hours that AI tools saved, which could change what hourly legal bills look like.
The New York State Bar has said lawyers cannot charge clients for time that artificial intelligence saved them. Law360 reported the guidance on November 2, 2026. If a tool does in minutes what used to take hours, the bill should not pretend those hours were worked.
The guidance is about billing. Many lawyers charge by the hour, so the number of hours on an invoice is the price. The bar's position, as reported, is that hours AI saved cannot be billed to the client as if the lawyer had spent them.
Anyone who pays a lawyer by the hour is touched by this. That includes small business owners, families dealing with a legal matter, and companies that hire outside counsel. It also affects law firms, which may need to rethink how they track and describe their work.
If you pay a lawyer by the hour, you can ask two plain questions. Then compare the answers with your invoice.
The full article is behind a Law360 paywall, so the finer points are not clear. It is not known how the guidance will be enforced, whether it carries penalties, or how firms must show the time they saved. Details of the bar's reasoning are also unavailable.
Watch for law firms to explain how they use AI. Some may also move toward flat fees, where the price is set in advance and does not depend on hours worked.
If your lawyer bills by the hour, ask whether AI was used and whether the hours on your invoice match the time actually spent.
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