Further, passing AI costs directly to clients as a disbursement is not gaining traction quickly in the UK. Value-based pricing offers a stronger shield against rising AI costs – but only if it is applied with discipline. Structure guards margins against erosionEven when legal services are value priced, indiscriminate AI usage could erode gross margin. Ready for what’s nextIt is not hard to imagine a distinction emerging between business-as-usual AI costs and high-value AI use. By contrast, large-scale or matter-specific AI use may justify allocating AI costs more directly to the matter.