Sarah Murphy, EMEA General Manager, Clio
Small law firms have embraced artificial intelligence (AI), with document drafting or automation the most popular application, according to new research.
The survey also found expectations of a continued move away from hourly billing to fixed fees.
Legal technology provider Clio commissioned UK-specific research from Censuswide as an adjunct to its annual US-focused Legal Trends report, polling 500 solicitors, 82% of whom worked at firms with 20 lawyers or fewer.
Some 96% of them reported that their firms have adopted AI into their processes in some way – 56% of them said it was widespread or universal – while 62% anticipated an increase in AI usage over the next 12 months.
A third said their firms were planning to invest more than £100,000 in technology over the next year.
Additionally, 36% of firms plan similar investments in marketing, “reflecting a strategic alignment with client acquisition and engagement needs”, said Clio.
More than one in three (36%) said they were using AI for document drafting or automation, followed by contract review and analysis (29%), e-disclosure (20%) and legal research (17%).
Some 43% of solicitors said AI had enhanced work quality and productivity, and 41% noting benefits to business growth. For a fifth of respondents, AI has also supported mental wellbeing and work-life balance.
Fewer than one in three (29%), however, said AI helped to save costs.
“AI and strategic tech investments aren’t just trends—they’re reshaping UK legal practice,” said Sarah Murphy, Clio’s EMEA general manager. “It’s inspiring to see legal professionals embrace this shift, where increased productivity and a better work-life balance are finally within reach.”
The research said the move towards fixed fees was also gathering pace, with 54% of solicitors expecting an increase in their use in the face of client demand and competitive pressures.
Clio chief executive Jack Newton said: “AI might finally be the death knell for the billable hour. There’s going to be a large disconnect between the value law firms are delivering and the value being reflected in the billable hour model.
“Fixed-fee billing, which many law firms are already embracing, may become even more common as AI further automates workflows and reduces reliance on hourly billing.”
The research also looked at client communication preferences, with 45% of clients still favouring the telephone, 43% opting to use a firm’s website and 42% comfortable interacting via chatbots. Four in 10 clients prefer mobile apps, while 38% still want to use email.
Meanwhile, separate research published by Thomson Reuters found that two-thirds of UK lawyers believe their professional regulators should oversee the use of AI in law, while half think the government should have a role too.
According to its 2024 Future of Professionals report, 42% of UK lawyers said regulators should specifically audit the algorithms used by legal AI systems, while 59% said AI tools should be certified as meeting certain standards. The research spoke to 265 UK-based lawyers among 2,205 around the world.
Kriti Sharma, chief product officer for legal tech at Thomson Reuters, said: “It’s natural for lawyers to look to their professional bodies as the first line of regulation of the use of AI. Concerns around ethics and accuracy are crucial to responsible use of AI – issues that are central to how organisations like the Solicitors Regulation Authority already regulate the profession.
“There needs to be trust in the results that AI is generating. While many firms are putting their own guardrails in place now, they recognise that further safeguards could help establish broad accountability in the AI ecosystem needed to drive further AI adoption.”
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