AI Exposes a Critical Divide in Patent Practice

AI is exposing a critical divide in patent practice: which firms serve as true strategic partners versus those functioning primarily as labor providers. Rather than delivering cost savings, widespread AI adoption is intensifying pressure on traditional billing models and firm economics.

Gene Quinn's recent IPWatchdog, Inc Unleashed panel with Carlo Cotrone, Robert Plotkin, and John Rogitz delivered the operational candor the patent bar needs amid rising AI adoption.

In-house teams are pressured to treat AI as a shortcut to faster, lower-cost outside counsel. Yet firms bear the costs of tools, training, and workflow redesign while facing fee compression. As Quinn noted, this is not a sustainable business model—and risks a "death spiral" harmful to both firms and clients needing robust, enforceable patents.

Key Observations from the Discussion

  • A quality tool, not a discount machine. Rogitz emphasized that AI's real value lies in sharper drafting, stress-tested arguments, and enhanced judgment—not simply doing the same work for less. Lawyers must still define "good" output, as AI's overconfidence can mislead.
  • The jagged frontier is real. Plotkin highlighted AI's uneven capabilities: excellent in some tasks, poor in others. Quinn added that AI prioritizes convincing outputs over accurate ones. In patent practice, where precision carries legal consequences, this gap demands rigorous attorney oversight.
  • The disclosure problem has inverted. Counsel once received sparse inventor input. Now, AI often generates voluminous "treatises"—detailed in appearance but bloated, inaccurate, or disconnected from the actual invention. Such AI-generated disclosures can actually increase attorney review time.
  • A new friction. Plotkin shared experiences of receiving severe AI-generated critiques presented as client feedback, only to learn the client held no such view. This creates misalignment and new communication challenges.
  • The billing gap. Rogitz observed that few in-house teams or clients offer to cover AI subscription or tool costs, leaving firms to absorb them amid deflationary fee pressure.

Cotrone reframed these issues as strategic opportunities: new processes, clearer billing terms, and deeper client collaboration. "AI is reminding us that relationships really matter."

Firms defining value by throughput face the greatest risk. Those emphasizing judgment, strategy, and commercially meaningful outcomes are best positioned to thrive. This principle applies similarly to early-stage companies. Low-cost AI output with minimal review is abundant; durable, enforceable rights require disciplined expertise. High-value practices address this experience gap.