Former Allen & Overy Leader Co Founding AI Law Firm Aims to Disrupt Billable Hour Model
Wim Dejonghe, the former global senior partner at Allen & Overy, has co founded a new AI driven law firm named Falcon, which seeks to challenge the traditional billable hour model prevalent in the legal sector.
Falcon is set to launch initially in Belgium, offering a straightforward service. For a monthly fee of €1,000, approximately £800, businesses can have up to six commercial contracts reviewed, which include non disclosure and data processing agreements. Clients can submit their documents via platforms such as Slack or Microsoft Teams, with reviews provided on the same day.
The firm claims that similar services at conventional law firms could cost between €3,000 and €4,000, with turnaround times extending from days to weeks. Dejonghe has highlighted the inefficiencies associated with hourly billing, stating that the model needs to evolve, particularly with the integration of AI technologies.
Despite the firm's reliance on AI, Falcon maintains a human element in its operations. Each contract review will be overseen and signed off by a qualified lawyer, as Dejonghe emphasises that clients still value the professional judgment of a lawyer alongside the efficiency offered by AI.
Dejonghe has a history of influencing significant changes in the legal market. In 2023, while serving as senior partner at A&O, he referred to the merger with Shearman & Sterling as a pivotal moment for both firms and the broader legal profession, resulting in the formation of A&O Shearman.
Falcon has secured €1.5 million in pre seed funding and has plans for future expansion. The founding team includes former Freshfields lawyer Rémy Bonnaffé and the entrepreneurs behind Belgian HR start up Mbrella. The firm is also in discussions with potential founding lawyers in key cities such as London, Paris, and Amsterdam.
The legal industry is currently witnessing a surge in AI initiatives, with many firms exploring the technology within the framework of traditional law practice. Notable firms like Latham & Watkins and Kirkland & Ellis are investing in their own AI infrastructures and bespoke tools, while Freshfields has partnered with Anthropic and OpenAI to enhance their legal technology offerings.