Maximum Lawyer Podcast

Episode: Latent Legal Market Opportunities with AI and Subscriptions
Host: Tyson Mutrux
Guest/Speaker: Matthew Kirbis, Founder of Subscription Attorney
Date: January 1, 2026

Episode Overview

This episode features a session from MaxLawCon 2025 with Matthew Kirbis, founder of Subscription Attorney and host of the Law Subscribed podcast. Kirbis explores how AI and subscription pricing models are revolutionizing access to legal services by opening up what he calls the "latent legal market." He shares real client stories, practical frameworks for using AI, and strategic reasons for moving away from the billable hour toward sustainable and client-friendly pricing.

Key Discussion Points & Insights

1. The Latent Legal Market and Its Massive Untapped Potential

• The Problem: Traditional law firm models focus on competing for a share of the current $400 billion US legal market (02:00–06:00), but the majority of legal needs (77%) go unmet.
  • Kirbis: “According to the World Justice Project, 77% of legal needs go unmet by lawyers in the United States. …I think of it as this latent legal market opportunity.” (06:30)
• Opportunity: This means there is potentially a $1.3 trillion market of people willing to pay if pricing and access were different.

2. Subscription Pricing: Transparent, Predictable, and Client-Friendly

• Client Story: Kirbis shares a story about "Sally," a small business owner who couldn't get meaningful advice from traditional lawyers because of unpredictable billing and retainer structures.
  • Kirbis: “It’s not that she doesn’t have the money, it’s that she needs to know what it’s going to cost.” (04:40)
• How Subscriptions Work: Clients pay a monthly fee (ranging from $20 to $2,000 based on service level) with transparent pricing per project, page, or deliverable—offering predictability and lowering barriers to entry.

3. AI Is Disrupting the Billable Hour (and Why That's Positive)

• AI Automating Legal Work: Clio’s legal trends report finds that 75% of total firm billable work is now automated by AI—those hours aren’t reduced, they’re gone. (03:20)
• Illustrates Obsolete Pricing: What used to require 10 hours of billable time (#$5,000 at $500/hr) can now be done in 10 minutes with AI—pricing by the hour is fundamentally misaligned.
  • Kirbis: “You would have to do a 50x times your rate or charge $25,000 an hour. …What does that say for access to justice?” (09:25)
• Ethics Angle: Charging high hourly rates for AI-reduced tasks is potentially unethical per Rule 1.5 on reasonable fees.
  • Kirbis: “If you’re billing by the hour and not using AI, you’re probably in violation of your rules of professional conduct.” (33:55)

4. Using AI Effectively: The 'Context Engineering' Approach

• Evolution of Prompting: Shift from thinking of 'prompt engineering' to 'context engineering.'
  • Kirbis: “We don’t call it prompt engineering anymore. It’s context engineering. …You’d give them as much context as you can.” (13:25)
• Best Practices:
  • Treat AI as a “smartest entry-level worker”—give detailed context, iterate, and never treat the output as gospel.
  • Use multiple AI tools (e.g., ChatGPT, Claude, Google Gemini) to balance biases and limitations.
  • Only trust tools that provide clear citations and retrieval-augmented generation, not just static AI responses.
• Memorable Analogy: Using generic tools (like ChatGPT) for everything is as misguided as building a bathroom with only a power drill.
  • Kirbis: “We need purpose-built tools for what we do. …Just like the contractor can’t use one power tool for that job, we need to use multiple tools to get the job done as lawyers." (24:00)

5. Practical AI Workflow Example

• Kirbis uses Google NotebookLM Pro for a client question:
  • Uploads a 600+ page franchise disclosure document.
  • In seconds, runs semantic search—finds the answer, verifies via citations.
  • Delivers precise advice within 10 minutes during a call.
  • Kirbis: “How much time would it have taken to analyze a 600-page document and write a formal opinion?... This is why the era of the billable hour is over.” (28:40)

6. Subscription Models: Benefits for Lawyers, Clients, and Staff

• Client Relationships & Growth:
  • Predictable, recurring revenue for firms.
  • Clients aren’t afraid to call—problem avoidance, not just problem solving.
  • Lower stress, higher retention (staff not tracking in “6 minute increments”).
  • Kirbis: “The subscription model lets you scale your firm without more hiring. And now with AI, it’s only like 100x more, right?” (35:20)
• Marketing Shift: Calls low-priced plans a “marketing earn” instead of a spend—maintains open relationships.
• Call to Action: Imagine if your bar banned the billable hour—plan how to change within 365 days.

7. Announcing A Next Step: Practice Enablement Platform

• Max Law Exclusive: Kirbis announces his forthcoming company, Practi, aimed at helping lawyers implement subscription-based, AI-empowered practice models.
  • Kirbis: “Whether or not you use this new solution that I’m working on, or you have your own solution… I hope you’re convinced today that you want to tackle this latent legal market opportunity…” (38:20)

Notable Quotes & Memorable Moments

• On the subscription mindset:
  “It’s not that she doesn’t have the money, it’s that she needs to know what it’s going to cost.” — Matthew Kirbis (04:40)

• On the market size:
  “77% of legal needs go unmet by lawyers in the United States. …That means there’s a $1.3 trillion market opportunity.” — Matthew Kirbis (06:35)

• The billable hour is over:
  “How much time would it have taken to analyze a 600-page document and write a formal opinion?... This is why the era of the billable hour is over.” — Matthew Kirbis (28:40)

• On context engineering:
  “You don’t just say ‘summarize this deposition’… you’d give them as much context as you can.” — Matthew Kirbis (13:25)

• On ethical billing:
  “If you’re billing by the hour and not using AI, you’re probably in violation of your rules of professional conduct.” — Matthew Kirbis (33:55)

• Subscription as marketing:
  “I consider my $20 a month subscription a marketing earn rather than a marketing spend.” — Matthew Kirbis (36:30)

• Call to action:
  “Pretend …your state supreme court bans the billable hour, but they give you one year. …Plan for it, starting today.” — Matthew Kirbis (37:00)

Key Timestamps

• [01:41] – Kirbis introduction and journey to subscription model
• [03:20] – AI automating 75% of firm billable work
• [04:40] – Sally and the need for pricing certainty
• [06:30] – The $1.3 trillion latent legal market
• [09:25] – AI reducing 10-hour tasks to 10 minutes and pricing dilemma
• [13:25] – ‘Context engineering’ with AI
• [24:00] – Lawyer toolkit analogy: don’t use a power drill for everything
• [28:40] – Real-life franchise doc AI example
• [33:55] – Ethics: Responsible use of AI and fee arrangements
• [35:20] – Subscription models scale firms and improve retention
• [36:30] – Subscription as a marketing strategy
• [37:00] – Call to action: Preparing to ditch the billable hour
• [38:20] – Exclusive: Launching Practi to help lawyers transition

Summary Flow

Matthew Kirbis delivers a practical, visionary talk urging lawyers to embrace AI and subscription pricing to unlock the massive, currently underserved legal market. He argues that AI’s power makes the traditional billable hour obsolete and potentially unethical, advocating for transparent, predictable, client-centered business models. Kirbis grounds his approach in real-life stories, practical frameworks, and compelling anecdotes—culminating in the announcement of a new platform to help lawyers transition. Whether for seasoned firm owners or innovative solos, this episode provides actionable insight into the future of legal practice.

For more, visit subscriptionattorney.com or check out Law Subscribed podcast for in-depth details and lawyer interviews.