Outside counsel guidelines, often called OCGs, define how a client expects a law firm to staff, record, describe, code, and invoice legal work. Because guidelines vary by client, a time entry can be accurate as a record of work and still fail a client's billing requirements.
AI timekeeping can help by bringing narrative, coding, and rule checks closer to the time-entry workflow. It should support lawyer and billing-team judgment rather than automatically deciding what a client should be billed.
What Are Outside Counsel Guidelines?
Outside counsel guidelines are client-specific instructions governing the relationship between a legal department and outside law firms.
Depending on the client, guidelines may address:
Staffing and approved timekeepers
Billing rates
Matter budgets
Block billing
Billing increments
Administrative or non-billable activities
Travel
Research
Internal conferences
Required narrative detail
Task and activity codes
Invoice timing
E-billing submission
Expenses
Prior approval requirements
Because guidelines differ between clients, law firms need a process for translating written requirements into operational billing controls.
OCGs, LEDES and UTBMS Are Related but Different
These terms are frequently used together, but they serve different purposes.
Outside counsel guidelines are the client's rules.
LEDES® refers to legal electronic data exchange standards maintained by the LEDES Oversight Committee. LEDES formats define structured ways to exchange legal billing information. The widely used LEDES 1998B format, for example, contains standardized invoice fields.
UTBMS refers to task and activity coding systems used to categorize legal work. Activity codes include categories such as research, drafting, review, and communication.
A client may require a law firm to submit an invoice in a LEDES format, use specified UTBMS codes, and also follow additional OCG requirements that are unique to that client.
Why OCG Compliance Is Difficult at the End of the Billing Cycle
Many billing problems are discovered during pre-bill review, after the lawyer has already entered the time.
At that point, billing staff may need to:
Rewrite vague narratives
Ask the lawyer what work was performed
Split block-billed entries
Correct task or activity codes
Confirm whether an activity required approval
Remove prohibited administrative work
Resolve missing matter information
The longer the delay between the original work and the correction, the harder it can be to reconstruct the necessary context.
A better model checks likely issues while the lawyer still has the work fresh in mind.
How AI Can Support OCG Compliance
AI can assist at several stages of the workflow.
1. Capture work context
Activity signals from email, documents, meetings, research, and other systems can provide context for a draft entry.
2. Draft a clearer narrative
AI can turn raw activity into a concise description of the work performed.
3. Suggest task and activity codes
Where the client requires codes, AI can suggest categories based on the work. The lawyer or billing team should confirm the final code.
4. Check known client rules
A system can compare the proposed entry with configured requirements and surface possible issues before release.
5. Keep a human approval step
The lawyer remains responsible for deciding whether the entry is accurate, appropriate, and billable.
MIRA's current product material describes AI-assisted narrative drafting, task and activity code suggestions, and OCG validation as part of its time-entry workflow.
Improving Legal Billing Narratives
Vague descriptions make it difficult for clients and billing reviewers to understand the value of the work.
A weak entry might say:
Review documents and emails.
A clearer entry might say:
Reviewed revised purchase agreement and related client correspondence regarding termination and indemnity provisions.
The improved version identifies the work, subject, and purpose with more useful context.
AI can help create the draft, but firms should define narrative standards that fit their clients and practice areas.
How UTBMS Coding Works in Practice
UTBMS coding normally separates the type of matter task from the activity performed.
For example, the standard litigation code set includes L110 Fact Investigation/Development, while the activity code set includes:
A101 Plan and prepare for
A102 Research
A103 Draft/Revise
A104 Review/Analyze
A105 Communicate within legal team
A106 Communicate with client
The correct code depends on the work and the client's requirements.
AI can suggest a likely code based on captured activity and narrative context, but automated coding should be tested carefully. Similar-looking work can have different billing purposes, and client-specific requirements may override a general coding assumption.
What an OCG-Aware Time Review Should Check
Before an entry is released, an OCG-aware workflow can check:
Correct client and matter.
Authorized timekeeper.
Duration and billing increment.
Clear narrative.
Prohibited vague wording.
Possible block billing.
Required task and activity codes.
Restricted or non-billable activity.
Prior-approval requirements.
Confidential information that should not appear on an invoice.
Matter budget or staffing considerations.
Client-specific exceptions.
Not every rule can or should be automated. Some require interpretation, matter context, or communication with the client.
AI Should Reduce Review Work, Not Remove Review
Legal billing requires professional judgment.
An AI system may know that a lawyer reviewed a document, but it may not know:
Why the review was necessary
Whether the activity is billable
Whether the client authorized the work
Whether the narrative reveals privileged or sensitive information
Whether the activity should be combined with or separated from another entry
Which client-specific exception applies
For this reason, MIRA's workflow allows lawyers to edit and approve entries before releasing them to billing.
Frequently Asked Questions
What are outside counsel guidelines?
Outside counsel guidelines are instructions issued by a client that define expectations for staffing, billing, rates, narratives, codes, expenses, approvals, and other aspects of the outside counsel relationship.
Is LEDES the same as UTBMS?
No. LEDES defines standards for exchanging legal billing and related data. UTBMS provides standardized task and activity code sets used to categorize legal work.
Can AI automatically make a time entry OCG compliant?
AI can help detect likely issues, draft clearer narratives, and suggest codes, but final compliance can depend on client-specific rules and professional judgment. Human review should remain part of the process.
What is block billing?
Block billing combines multiple distinct tasks into one time entry. Some clients prohibit or restrict it because they want greater detail about how time was spent.
How does MIRA support billing guideline compliance?
MIRA's product material describes AI-assisted narrative drafting, task and activity code suggestions, OCG validation, and lawyer review before entries are released to connected billing systems.
