---
title: "Billing and time-recording policy for AI-assisted work"
url: "https://ailawframework.com/precedents/costs-billing-and-litigation-funding/ai-billing-time-recording-policy"
type: "precedent"
site: "AI Law Framework"
id: "a42-ai-billing-time-recording-policy"
area_id: "A42"
kind: "policy"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# Billing and time-recording policy for AI-assisted work

> Firm policy on recording time and billing for work done with AI tools, so bills reflect real legal work, efficiencies reach the client, and verification or rework does not inflate costs.

Canonical page: https://ailawframework.com/precedents/costs-billing-and-litigation-funding/ai-billing-time-recording-policy  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Policy. A policy or procedure for a firm or client.
- Practice area: [Costs, billing & litigation funding](https://ailawframework.com/precedents/costs-billing-and-litigation-funding.md)
- Jurisdictions: New South Wales, Victoria, Western Australia, Australia, United States
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 5 authorities it cites, for 5 jurisdictions.

## When to use it

Adopt as a firm policy alongside the law firm AI use policy. Apply to all fee earners and to the responsible principal reviewing each bill. Revisit fixed-fee pricing when AI changes the effort for a matter type.

## How AI may be used

AI can group time entries, flag AI-assisted entries and compare a draft bill with the disclosure, but the responsible principal decides what is charged and signs off every bill.

**AI may:**

- Turn time entries into a draft bill grouped by task, flagging entries outside the disclosed scope.
- List AI-tagged entries and compare the time charged with the time typical for the task.
- Line the bill up against the last costs disclosure and list undisclosed work, rates or totals.

**AI must not:**

- Must not create, inflate or "round up" time entries.
- Must not decide write-offs or approve a bill.
- Must not be given access to trust or billing systems with authority to issue or send bills.

**The lawyer checks:**

- Every AI-assisted entry reflects time actually spent and is proportionate to the task.
- Rework caused by unusable AI output has been written off where it exceeded the time the task would otherwise take.
- Any tool cost charged was disclosed and agreed, at cost.

## Authorities

- [Legal Profession Uniform Law ss 172 and 173 (fair and reasonable costs; avoidance of increased legal costs)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a#sec.172)
- [Legal Profession Uniform Law ss 174, 186 to 190 and 207 (disclosure, bills, responsible principal, progress reports, disciplinary consequences)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a#sec.174)
- [Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 r 12.2 (no benefit beyond fair and reasonable remuneration)](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0244#rule.12)
- [Statement on the use of artificial intelligence in Australian legal practice (Law Society of NSW, Legal Practice Board of WA and Victorian Legal Services Board + Commissioner, 6 December 2024): "Charging costs that are fair, reasonable and proportionate"](https://lsbc.vic.gov.au/news-updates/news/statement-use-artificial-intelligence-australian-legal-practice)
- [US: ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024), part F (fees)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf)

## Official form

[Official form](https://lsbc.vic.gov.au/news-updates/news/statement-use-artificial-intelligence-australian-legal-practice)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/costs-billing-and-litigation-funding/ai-billing-time-recording-policy and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*