Training Data Deal Velocity, Not Billable Hours: How Crosby Uses AI to Redefine Legal Contracting
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Sep 2, 2025 
Ryan Daniels and John Sarihan, co-founders of Crosby, an AI-driven law firm, are transforming contract negotiations by integrating AI with legal expertise. They discuss their innovative approach to eliminate billable hours, opting for per-document pricing instead. The duo reveals how their collaboration fosters real-time feedback and enhances operational efficiency. Additionally, they explore the potential of AI to predict negotiation outcomes and envision agents capable of simulating entire contract discussions, reshaping the future of legal services.
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Law Firm Structure Enables Faster AI Innovation
- Crosby structured as a law firm to pair lawyers with engineers and enable faster product iteration.
- The law firm form unlocks in-house innovation cycles that typical partnerships and billable-hour models block.
Legal Work Is A Credence Good
- Legal services are a credence good: buyers often can't judge quality without an expert.
- Structuring as a law firm keeps lawyers in the loop and provides the safety signal customers need.
Price By Document, Not By Hour
- Avoid billable hours and price by document to align incentives with speed and outcomes.
- Predict time-to-complete from day zero so per-document pricing remains profitable and predictable.