Why This AI Law Firm Is Ditching The Billable Hour

Published on March 31, 2026

In a bold move that challenges the traditional legal billing model, New York-based startup Cros away from the conventional billable hour to offer a more streamlined and client-friendly approach. The firm employs a hybrid system where AI agents work in tandem with human lawyers to expedite contract reviews, charging clients instead of the hour.

Crosby, which caters to tech companies such as Cursor and Runway, has gained attention for its innovative operations, which CEO Ryan Daniels describes as a “neofirm.” This term reflects the firm’s integration of technology and legal expertise, showcasing its commitment to reducing inefficiencies often associated with traditional law firms.

intelligence, Cros analyze and review contract documents, identifying key clauses and potential issues before the lawyers take over. This collaboration between AI and human expertise allows for quicker turnaround times and potentially lower costs, benefiting clients who are accustomed to the slower pace and unpredictable pricing of typical legal services.

“Clients today demand transparency and efficiency,” Daniels stated in a recent interview. “The billable hour model can often lead to frustration and uncertainty. page, we provide our clients with clearer expectations and a more reliable budgeting structure.”

The page-based billing system not only promises fairness in pricing but also aligns the workload with the compensation—encouraging efficiency among the legal team. Crosby’s focus on fast-paced tech clients means that speed and accuracy are paramount.

As the firm continues to develop its model, it is also exploring additional ways to integrate AI into more complex aspects of legal work. The vision is not just to create efficiency but to also redefine the role of lawyers in a tech-driven environment, allowing them to focus on higher-level tasks rather than repetitive document reviews.

The reaction from the legal industry has been mixed. While some see Crosby’s approach as a progressive and necessary evolution, others remain skeptical about the long-term viability of moving away from the billable hour. Critics argue that the model may sacrifice the quality of legal work for speed and cost savings.

However, Crosby’s early success suggests a potential shift in how legal services could be delivered in the future. As more firms explore the incorporation of AI tools and alternative billing methods, Cros the forefront of a movement that could redefine the legal landscape.

With the increasing influence of technology in every sector, including legal services, Cros to not just keep pace but to lead the charge toward a more efficient, accessible, and transparent legal practice. Whether other firms will follow suit remains to be seen, but the conversations sparked ’s model indicate that significant changes are on the horizon.

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