Elite: Law firms see 64% climb in rejection rates as client AI billing scrutiny advances
Elite, the AI financial operations platform for law firms, today released new findings from its E-Billing After AI Report, revealing a sharp increase in invoice rejection rates across the legal industry as corporate legal departments adopt more advanced AI-driven billing scrutiny.
Elite’s billing data across approximately 400 firms, including roughly half of the Am Law 200, reveals that firms that have delayed adopting AI-driven billing compliance tools like Elite Validate are seeing invoice rejection rates rise sharply as clients increasingly use AI to scrutinize invoices before payment.
In 2025, rejection rates climbed from 11% to 18%, signaling a materially tougher billing environment driven by automated invoice review.
“As corporate legal departments apply more automation and AI to billing review, traditional compliance processes will increasingly fall behind,” said Mark Dorman, Chief Executive Officer, Elite. “Firms need trusted data, governed workflows, and embedded intelligence that can identify risk before an invoice ever reaches the client—moving from reactive billing correction to proactive revenue protection.”
Elite’s research also found that many firms remain ill-equipped to respond:
- 71% of firms still rely primarily on manual processes to manage OCG compliance
- 48% of Global 200 CFOs cite e-billing as their most significant revenue cycle challenge
Despite clear signs the billing environment is changing, many firms continue to rely on reactive post submission correction processes, identifying issues only after invoices are rejected, delayed, or reduced.
“You cannot manually review your way out of an AI-driven compliance problem,” added Dorman. “The firms that are responding most effectively are taking a platform approach—embedding intelligence directly into their workflows—so that issues can be identified upstream rather than after rejection.”
While many firms are struggling to proactively address rising billing scrutiny, those with embedded intelligence and connected financial workflows are moving cash faster and reducing friction between billing, compliance, and payment operations, helping invoices move through the approval process faster, with fewer delays.
In 2025, Elite’s eBillingHub customers saw average payment times fall from 62 to 50 days, a nearly 20% improvement and the fastest payment cycle observed in more than 15 years.
The data suggests firms with more connected and intelligent revenue operations are better equipped to keep pace as client invoice review becomes increasingly automated, and expectations around billing accuracy continue to rise.
Download the full report here.
