This week on The Geek in Review, we talk with Kristina Satkunas of CounselLink about what the numbers are saying in a legal market that still talks about change while clinging hard to old billing habits. Kris discusses the hard data behind outside counsel spend, drawing on CounselLink invoice data and Harbor survey results to compare what legal departments say they expect with what the bills are already showing. She makes the case that the objective data is stubbornly clear. Rates are rising, demand is not falling, and the biggest firms continue to capture a larger share of work.

There is a widening gap between hope and reality. Legal departments may believe they are on the verge of controlling outside counsel costs, moving more work in house, or shifting matters to smaller firms, but Satkunas notes that the billing data has not caught up to those ambitions. She sees some room for in-house expansion in more routine areas like employment work, especially with AI helping legal teams absorb more volume, yet the largest and most sensitive matters are still flowing to outside counsel. That tension gives the episode much of its energy. Everyone sees pressure building in the system, but the old habits of legal buying and legal staffing remain firmly in place.

The discussion also gets into the mechanics of better decision-making, and where there is practical value for legal operations leaders. Satkunas emphasizes that data only becomes useful when departments have enough discipline in their enterprise legal management systems to categorize work correctly, clean out outliers, and separate different matter types instead of lumping everything into broad buckets like litigation. She also explains why finance data alone will not do the job. The real insight sits inside invoice-level detail, where hours, rates, firms, and timekeepers reveal what is happening beneath the headline spend numbers. For listeners trying to build a stronger legal ops function, this part of the conversation feels like a polite but firm warning that dirty data still tells stories, but some of them are fiction.

There is an obvious strain on the billable hour model that AI is placing on it. Satkunas notes that while average partner rate growth has hovered around 5 percent, top-end lawyers are often raising rates even faster, especially as firms try to protect revenue from the work and people they still believe clients will pay for. At the same time, she argues that alternative fee arrangements have remained stuck for years, though AI may finally force movement toward value-based pricing. If technology reduces the hours required to complete the work, then the old logic behind both hourly billing and many flat fees starts to wobble. That leaves firms facing an uncomfortable question, which is how to price legal services based on value delivered rather than time consumed.

We’d say that Satkunas is neither cheerleader nor doomsayer. She is a patient observer of a market trying to pretend nothing is happening while the floorboards creak under everyone’s feet. Her prediction is that real value-based billing will begin to appear in pockets over the next couple of years, even as firms continue squeezing what they can from the billable hour in the meantime. For law firm leaders, legal ops teams, and general counsel, this episode is a sharp reminder that disruption does not arrive with a trumpet blast. Sometimes it arrives as a spreadsheet, a trend line, and a guest who quietly points out that the data has been trying to warn us for years.

Listen on mobile platforms:  ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Apple Podcasts⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ |  ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Spotify⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠YouTube⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | Substack

[Special Thanks to Legal Technology Hub for their sponsoring this episode.]

⁠⁠⁠⁠⁠Email: geekinreviewpodcast@gmail.com
Music: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Jerry David DeCicca⁠⁠⁠⁠⁠⁠⁠⁠⁠

Transcript:

Continue Reading CounselLink’s Kris Satkunas on Rising Legal Spend, Law Firm Rates, and the Future of Value-Based Pricing

For the 300th episode of The Geek in Review, we celebrate in true “three geeks” fashion by bringing back two familiar voices: Kris Satkunas, Director of Strategic Consulting at LexisNexis, and legal pricing expert Toby Brown, CEO at DV8 Legal Strategies. Kris joins to walk through highlights from the newly released 2025 CounselLink Trends Report, and Toby brings his trademark insight… and a touch of skepticism to the discussion. Together, they explore what the latest data reveals about legal pricing, client behavior, firm strategy, and the evolving landscape of law firm-client relationships.

The conversation opens with a focus on the headline trend: partner billing rates continue to rise steeply, particularly in high-value areas like M&A and regulatory work. Despite clients claiming to negotiate hard on pricing, the data on effective rates, what clients actually pay, suggests those increases are sticking. Kris points out that clients are becoming more sophisticated in managing blended rates and staffing strategies, using analytics and technology to influence outcomes, even if hourly billing still dominates.

A recurring theme is the widening rate gap between large and mid-sized firms, now a staggering 61%. Kris attributes this to the concentration of high-rate work in large firms and their dominance in practices like M&A and regulatory. Toby adds that the presence of pricing professionals at larger firms contributes to more strategic rate setting—something mid-sized firms often lack. The team also discusses a new report metric analyzing new matter spend, which reveals that even fresh legal work is increasingly flowing to the largest firms, countering narratives that mid-sized firms are winning market share.

When the conversation shifts to Alternative Fee Arrangements (AFAs), Kris cautiously celebrates a slight uptick in usage, while Toby remains doubtful about long-term momentum. They agree that lawyers’ difficulty in scoping matters remains a key barrier. The role of project management professionals is highlighted as crucial for moving the industry forward on AFAs—but adoption is still slow, especially outside of established comfort zones like IP and employment law.

Greg brings up another area ripe for disruption: ALSPs and their potential to absorb high-volume, low-risk work. While Kris hasn’t yet seen a data-supported shift toward ALSPs, Toby sees tremendous opportunity—particularly when ALSPs combine process standardization and AI tools. The hosts also discuss specific use cases, like LegalMation for employment litigation, where existing tech could already reduce cost and inefficiency, if only firms were willing to change.

The episode closes with a look ahead. Kris notes the eye-popping rate growth among associates—some nearing $2,000/hour—as a surprising trend, while urging caution in interpreting conflicting data from different sources. Her “crystal ball” prediction? Legal rates will likely continue to climb, especially in high-stakes practice areas, while AFAs may finally gain ground if firms invest in the infrastructure to scope and manage work properly. As always, the team ends with good humor, mutual respect, and a shared love for data—exactly the energy you’d expect for The Geek in Review’s milestone 300th episode.

Listen on mobile platforms:  ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Apple Podcasts⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ |  ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Spotify⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠YouTube⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

[Special Thanks to Legal Technology Hub for their sponsoring this episode.]

Blue Sky: ⁠@geeklawblog.com⁠ ⁠@marlgeb⁠
⁠⁠⁠⁠⁠Email: geekinreviewpodcast@gmail.com
Music: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Jerry David DeCicca⁠⁠⁠⁠⁠⁠⁠⁠⁠

Transcript:

Continue Reading Episode 300: 2025 CounselLink Trends Report with Kris Satkunas and Toby Brown

In this episode of The Geek in Review podcast, hosts Marlene Gebauer and Greg Lambert welcome back Kris Satkunas, Director of Strategic Consulting at LexisNexis CounselLink, to discuss the findings of the 2024 Trends Report. The report, now in its 11th year, provides valuable insights into the legal industry, particularly focusing on hourly rates and spending patterns.

Satkunas explains that the data used in the report comes from the CounselLink Insight benchmarking database, which normalizes and anonymizes data related to matters and billing from CounselLink customers. This year’s report highlights significant increases in hourly rates, with firms relying more heavily on this lever to increase revenue and offset rising costs due to inflation. However, the degree to which rates have increased in recent years is noteworthy, with certain practice areas, such as M&A and IP litigation, commanding even higher rate increases.

Despite the substantial rate hikes, the report shows that blended rates at the matter level are not increasing as much, suggesting that other factors, such as staffing and leveraging, are helping to mitigate individual rate increases. Satkunas also notes that while there is a perception that high rates may drive clients to mid-sized firms, the data does not support this trend, with large law firms maintaining and even growing their client base.

The discussion also touches on the adoption of alternative fee arrangements (AFAs), which has remained relatively stagnant over the years, with only around 10% of matters having some form of AFA. However, Satkunas remains optimistic that the increasing pressure on corporations to manage costs, coupled with the adoption of AI and other technologies, may lead to a greater uptake of AFAs in the coming years.

Looking ahead, Satkunas predicts that rates will continue to rise, but the legal industry will likely see changes in the business model as AI becomes more integrated into legal practices. She emphasizes the importance of in-house counsel investing in the right talent to assess their needs and determine which technologies will best address those needs. Additionally, as AI advances, more transactional work may become commoditized, potentially leading to increased adoption of AFAs for these components of legal matters.

Listen on mobile platforms:  ⁠⁠⁠Apple Podcasts⁠⁠⁠ |  ⁠⁠⁠Spotify⁠⁠⁠ | ⁠⁠YouTube⁠⁠

Contact Us: 

Twitter: ⁠⁠⁠⁠⁠@gebauerm⁠⁠⁠⁠⁠, or ⁠⁠⁠⁠⁠@glambert
⁠⁠⁠⁠⁠Threads: @glambertpod or @gebauerm66
Email: geekinreviewpodcast@gmail.com
Music: ⁠⁠⁠⁠⁠⁠⁠Jerry David DeCicca⁠⁠⁠⁠

Transcript

Continue Reading 2024 Trends Report: Dynamics Shaping the Future of Legal w/CounselLink’s Kris Satkunas