AI and the Billable Hour Quiz

Answers and explanations appear as you take the quiz.

1. A task that used to take five hours now takes one hour of prompting and review. Under ABA Formal Opinion 512, what may an hourly-billing lawyer charge?
   • The full five hours, because the client got the same value
   • Nothing, because the AI did the work
   • The one hour actually spent, including prompting and review
   • A negotiated share of the four hours saved
2. How does Opinion 512 generally treat time spent learning an AI tool that a lawyer will use across the practice?
   • It generally should not be billed to clients
   • It can be billed to the first client who benefits
   • It can be billed at a discounted rate
   • It must be split evenly across all active clients
3. How are costs for a general-purpose AI subscription usually treated?
   • As a disbursement added to every invoice
   • As overhead, not as a charge passed to clients
   • As a contingent cost paid only if the case wins
   • As a court cost recovered from the other side
4. Which ABA Model Rule requires that fees be reasonable and that the basis for fees be communicated?
   • Rule 1.18
   • Rule 5.3
   • Rule 3.3
   • Rule 1.5
5. Why do flat fees appeal to firms using AI, and what limit still applies?
   • They let firms bill for hours saved, with no limit
   • The firm keeps efficiency gains, but the fee must still be reasonable
   • They avoid ethics rules entirely
   • They require clients to pay for AI subscriptions
6. This guide calls it a misconception that AI eliminates billable work. What remains?
   • Checking, judgment, client communication and responsibility for the result
   • Only data entry
   • Only court appearances
   • Nothing that can be billed
7. Beyond revenue, what structural concern does this guide raise about AI absorbing routine work?
   • Courts will stop accepting typed filings
   • Malpractice insurance will become illegal
   • It affects how junior lawyers are trained and the associate-based leverage model
   • Clients will need their own bar licenses
8. According to the technical section, what does a firm need before it can set flat fees safely?
   • A promise from the AI vendor about speed
   • Approval from the local court
   • A marketing budget
   • Data on the real cost of delivering each type of task