The AI legal leap: Why firms must adapt now or risk falling behind


Posted by Sarah Murphy, general manager of EMEA at Legal Futures Associate Clio

Murphy: We have to maintain the human touch

Artificial intelligence (AI) has very quickly become a defining element of the legal industry.

In what has been a rapid rise for something that, until recently, was still seen as simply a buzzword, AI has begun to revolutionise the way legal professionals work and deliver client services.

We researched how AI is being adopted within the legal sector, and the findings perfectly illustrate this point. For example, 96% of UK law firms now use AI in some capacity, marking a significant shift in the industry’s technological landscape. In addition, 62% of firms anticipate using AI even more in the coming year.

These statistics highlight the transformative power of AI in legal practices, marking a new era where technology and law increasingly intersect to drive better services and outcomes.

Let’s look at what it means for the future.

AI’s quick evolution

One remarkable element of this AI transformation has been its speed of adoption. Once known for its cautious approach to new technology, the legal sector has undergone a dramatic shift. Today, almost all firms in the UK use AI in some capacity, with more than half (56%), making it a widespread or universal part of their practice.

AI is being applied across various critical functions, revolutionising tasks like document drafting, e-discovery and workflow management, and allowing firms to handle larger caseloads more efficiently.

The stakes are rising for firms that have yet to embrace AI fully. Using AI will enhance your lawyers’ careers, improve your client’s product and increase your firm’s productivity.

Enhancing the client experience

The value of good client engagement can never be overstated, yet it often takes a backseat when cases become particularly intensive and demanding. To address this, lawyers increasingly use AI to manage repetitive and time-consuming tasks, freeing up their time to strengthen client relationships and improve communication.

By automating routine tasks, AI enables lawyers to respond faster and more effectively to client needs in person and virtually. In fact, our research shows that 45% of firms now use AI-powered tools like chatbots and mobile apps to provide quick, clear updates to clients. This aligns with client preferences for concise, timely communication.

The speed and flexibility provided by AI tools allow firms to exceed client expectations, offering levels of responsiveness that were once unattainable. As AI continues to evolve, it’s set to play an even greater role in shaping positive client experiences helping law firms build stronger, healthier relationships with clients.

The rise of fixed fees

Another side of the legal industry where AI is having a deep impact is fixed-fee billing.

Our research shows that 54% of law firms believe fixed-fee billing will soon replace traditional billable hours, while only one in five say the use of fixed fees will remain stable.

However, technology is not the only factor pushing this change; client expectations also play a major role. The additional clarity and peace of mind fixed-fee billing brings means it’s poised to become a dominant model over the next 12 months.

So, as AI continues to reshape legal practices, firms will need to reevaluate their billing models to stay competitive. Fixed-fee billing meets evolving client expectations and positions firms to capitalise on the operational efficiencies made possible by AI.

Impact on productivity and growth

A few areas highlight AI’s tangible benefits, such as its impact on productivity. According to our survey, 43% of lawyers report increased efficiency from using AI, and one in five have reported an enhanced work-life balance thanks to more flexible scheduling and reduced after-hours workloads.

This better balance benefits individual lawyers and translates into stronger overall performance: 41% of firms say AI has helped them grow their business, and almost a third (29%) say it helps them save money. This shows how this technology is assisting organisations in scaling and staying agile in a constantly shifting market.

Navigating ethical challenges

As AI transforms the legal industry, it raises critical ethical questions that require careful consideration.

Concerns about bias in AI systems – particularly in areas like facial recognition and hiring tools – demonstrate the need for consistent oversight. Similarly, the issue of legal liability raises complex questions when AI tools are used to provide legal advice: who is ultimately responsible, the lawyer or the software provider?

Despite these challenges, AI can be implemented responsibly to enhance legal services without replacing the expertise of skilled professionals. Human oversight remains crucial to ensure accuracy, fairness and ethical compliance. As AI becomes more deeply integrated into law firm operations, the focus should remain on leveraging its potential while safeguarding the irreplaceable human element that defines the legal profession.

Embracing AI for a sustainable legal future

As the industry evolves, it’s important to remember that AI will not take your job as a lawyer. However, it’s worth understanding its impact on your work. While significant short-term gains can be made, AI can inspire long-term productivity and performance improvements.

As our recent research shows, the future of legal practice lies in harnessing AI’s potential while maintaining the human touch that defines quality legal service. As AI advances, those who adapt will likely thrive, while those who don’t risk being left behind.

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