The End of the Billable Hour: AI, Value, and the New Economics of Expertise

Summary

In the first episode of 2026 for the UpLevel View podcast, Stephanie Corey and Ken Callander sit down with Rita Gunther McGrath, Columbia Business School professor and Wall Street Journal columnist, to talk about how AI is forcing professional services to price outcomes instead of hours.

From law firms to in-house legal teams, the rules of value are being rewritten. The question is: who's ready to lead the change?

Listen to the UpLevel View and improve your legal leadership vision today!

Episode Highlights

00:00:18 - Introducing Rita Gunther McGrath.

00:02:23 - Definition of strategic inflection points.

00:03:21 - Legal industry disruption with AI.

00:06:47 - Shift from billable hours to value.

00:12:26 - The economic model and compensation structure challenges.

00:23:39 - Historical change movements as a model for legal transformation.

00:32:30 - Training and learning in the AI age.

00:39:36 - The concept of permissionless organizations.

00:40:15 - "Two percent less stupid" book title.

Episode resources:

• http://UpLevelOps.com

• Brainwave Newsletter by UpLevel Ops: http://UpLevelOps.com/Brainwave

• Thought Sparks Podcast: https://podcasts.apple.com/us/podcast/thought-sparks/id1546758719

• Thought Sparks Newsletter on Substack: https://thoughtsparks.substack.com

• Learn more about Professor McGrath at: http://RitaMcGrath.com

Keywords

• UpLevel View

• Stephanie Corey

• Ken Callander

• Rita Gunther McGrath

• strategy

• innovation

• Columbia Business School

• Wall Street Journal

• Thinkers 50

• The End of Competitive Advantage

• Seeing Around Corners

• AI

• inflection points

• disruption

• value-based pricing

• legal industry

• billable hours

• professional services

• general counsel

• law firms

• legal operations

• Uber

• Airbnb

• marijuana legalization

• economic model

• law firm culture

• consulting firms

• transformation

• change management

• in-house teams

• apprenticeships

• legal training

• skill development

• future partners

• media industry

• Hollywood

• entertainment industry

• strategy

• scarcity

• permissionless organizations

• two percent less stupid