Billables.ai vs. IntelliBill: A Privacy-First Comparison

Quick Answer: Billables.ai and IntelliBill both automate legal time tracking, but differ fundamentally in data handling: Billables.ai doesn't clearly disclose where AI processing occurs or which third-party providers access client data, while IntelliBill uses local AI (Ollama/Llama) that runs entirely on your infrastructure—eliminating third-party privilege waiver risk.

Introduction

Billables.ai and IntelliBill both use AI to automate legal time tracking. Both promise to save attorneys 10+ hours per week.

But they differ fundamentally in one critical area: where your client data goes.

This comparison focuses specifically on privacy architecture—not features, not pricing, not user interface. Because for attorneys handling privileged communications, privacy architecture is the feature that matters most.

What Billables.ai Says

From Billables.ai's website:

"We don't store privileged data and we isolate and anonymize customer data."

This is reassuring language. But let's unpack what it actually means.

"We don't store privileged data"

This addresses retention—how long data is kept after processing.

It doesn't address transmission—whether data is sent to external servers for processing.

It doesn't address third-party AI—whether data is processed by OpenAI, Azure, or other cloud AI providers.

"We isolate and anonymize customer data"

Isolation and anonymization are security measures. They protect against unauthorized access by bad actors.

They don't address privilege waiver—the legal question of whether voluntary transmission to a third party waives attorney-client privilege.

The Questions Billables.ai Doesn't Answer

Based on publicly available documentation (as of December 2024), Billables.ai doesn't clearly answer:

1. Where is AI inference performed? On your device? On Billables.ai servers? On OpenAI/Azure infrastructure?

2. What third-party AI providers do you use? Do client emails pass through OpenAI, Anthropic, or other external APIs?

3. In which jurisdictions are your servers located? Could a Chicago client's privileged emails be processed in Ireland? Singapore?

4. How would you respond to a subpoena for client data? Would you fight it? Notify the attorney? Comply?

These aren't gotcha questions. They're the questions ABA Formal Opinion 512 says attorneys must be able to answer about their AI tools.

What IntelliBill Does Differently

IntelliBill's architecture is designed around one principle: privileged data should never leave infrastructure you control.

Local AI Processing

IntelliBill uses Ollama running Llama 3.3—a large language model that runs entirely on your local hardware.

• No API calls to OpenAI
• No transmission to Azure or AWS
• No third-party AI providers

The AI that reads your client emails runs on your laptop or your office server. Period.

Three Deployment Options

Even our hosted option doesn't use third-party AI. You get a dedicated Ollama instance that processes only your firm's data.

Clear Answers to Hard Questions

Where is AI inference performed?
On your device (Local), on your server (On-Premise), or on your dedicated isolated instance (Hosted).

What third-party AI providers do you use?
None. Zero. Ollama runs locally—no OpenAI, no Azure, no Anthropic.

In which jurisdictions are your servers located?
For local/on-prem: wherever you are. For hosted: US-based servers, jurisdiction disclosed in our DPA.

How would you respond to a subpoena?
For local/on-prem: we can't respond—we don't have your data. For hosted: we notify you immediately and provide time to contest.

The Privilege Question

Here's the core issue that most AI billing comparisons ignore:

When you transmit privileged client communications to a third-party server, you may be waiving privilege under traditional third-party disclosure doctrine.

"May" is doing a lot of work in that sentence. The case law isn't settled. But the risk exists.

Billables.ai's Risk Profile

Without clear documentation of their AI architecture, we can't definitively assess Billables.ai's privilege risk. But if they use cloud-based AI inference (OpenAI, Azure, etc.), the risk profile is:

• Client data transmitted to third-party servers ✓
• Data processed in potentially unknown jurisdictions ✓
• Subpoena exposure to vendor servers ✓
• Privilege waiver argument available to opposing counsel ✓

IntelliBill's Risk Profile

With local AI processing:

• Client data never transmitted to third parties ✗
• Data stays in your jurisdiction ✗
• No vendor servers for opposing counsel to subpoena ✗
• Privilege waiver argument significantly weakened ✗

Feature Comparison (Brief)

Since this article focuses on privacy, here's a quick feature comparison:

Pricing Comparison

IntelliBill's local option is actually cheaper than Billables.ai while providing stronger privacy guarantees.

Who Should Use Which?

Consider Billables.ai if:

• Privacy architecture isn't a primary concern
• You're comfortable with cloud-based AI processing
• You've reviewed their ToS and are satisfied with data handling
• Your clients don't require heightened confidentiality

Consider IntelliBill if:

• Attorney-client privilege is a priority
• You handle sensitive matters (family law, criminal defense, M&A)
• You want to eliminate third-party subpoena risk
• Your malpractice carrier is asking questions about AI tools
• You need to certify to clients that data stays in-house

Our Recommendation

If you're reading this article, you probably care about privilege protection. That suggests IntelliBill is the better fit for your practice.

But don't take our word for it. Download our free compliance guide, which includes:

• Detailed analysis of privilege waiver risk
• Questions to ask any AI billing vendor
• State-by-state ethics guidance
• Engagement letter templates

[Download: The Hidden Privilege Risk in AI Billing Software →]

Then make an informed decision based on what matters to your practice.

Conclusion

Billables.ai and IntelliBill both automate time tracking. The automation is similar. The privacy architecture is fundamentally different.

If you believe—as we do—that privileged client communications shouldn't be transmitted to third-party cloud servers, IntelliBill is the only AI billing tool built specifically for that requirement.

Your clients trust you with their most sensitive information. Your billing software should be worthy of that trust.

Competitor information based on publicly available sources as of December 2024. We encourage readers to verify current vendor terms and policies directly.

This article is for informational purposes only and does not constitute legal advice.

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