Cooley Law Firm Shifts to Outcome-Based AI Model
Rachel Proffitt is restructuring Cooley to move away from billable hours by launching a dedicated AI subsidiary and developing automated legal tools.
The leader of global law firm Cooley, Rachel Proffitt, is restructuring the firm's business model to adapt to the rise of artificial intelligence. Recognizing that AI can automate tasks that previously required extensive associate labor, Proffitt is shifting the firm's focus from billable hours toward outcome-based results and deeper client relationships.
To execute this strategy, Cooley launched Cooley AI, a wholly owned subsidiary led by David Wang designed to develop legal technology at startup speed. The firm has already collaborated with Legora to provide contract review tools for Y Combinator founders and worked with OpenAI to streamline IPO paperwork. Additionally, Cooley is partnering with Google to create an AI agent for document redaction.
Proffitt aims to prevent displacement by in-house legal teams and AI-native firms by providing self-service tools that maintain client connections. Beyond client services, she is exploring the use of AI-powered simulations to replace traditional apprenticeship models for junior associates.
