Definition
Alternative fee arrangements decouple legal pricing from hourly time — including fixed-fee, capped fees, subscription, and collared fee structures.
Key Points
- ~80% of Persuit platform legal work uses AFAs vs billable hours (FT, Sep 2026)
- 72% of US firms offer AFAs per Best Law Firms 2026 survey; flat fees most common (73%)
- AI efficiency makes AFAs more attractive — firms capture margin from faster delivery
- 49% of firms saw increased AFA demand (BigHand 2026)