Key facts
- AI is prompting law firms to re-evaluate their business models.
- Clients are increasingly focused on legal outcomes rather than billable hours.
- Cooley's gross revenue increased to $2.4 billion last fiscal year.
- Cooley is working on OpenAI's IPO.
Cooley CEO Rachel Proffitt is embracing artificial intelligence to reshape the traditional law firm business model, particularly the reliance on billable hours. She argues that clients are more interested in the outcomes of legal services rather than the time lawyers spend on tasks. Proffitt believes that as AI can perform tasks in minutes that previously took hours, law firms must adapt their pricing and operational strategies. Cooley, with its deep roots in Silicon Valley, has a history of working with tech companies and is now navigating the disruption AI presents to the legal industry. The firm's gross revenue has grown significantly, reaching $2.4 billion last fiscal year. Proffitt, who became CEO in 2024, aims to make Cooley operate more like the tech companies it represents, including launching new tools to change client interactions.