AI is on the march but many law firms still don’t have a strategy
UK law firms are ahead of their international peers in the pace of AI adoption, according to new research, though most firms still lack a coherent strategy.
Only 24 per cent of legal professionals in the UK say that their law firm has an AI strategy, according to Thomson Reuters.
The report found that law firms with a strategy are nearly twice as likely to report revenue growth due to their investment in AI compared to those without a plan.
John Shatwell, head of Legal Professionals, Europe at Thomson Reuters, explained: “Bringing on board a major new technology with a clear strategy is inevitably delivering far better results for law firms than an ad hoc approach.”
The research revealed that over one-third of legal professionals reported experiencing improved efficiency and productivity as a result of implementing the new technology.
Some forms have been pushing hard to implement the new technology. Shoosmiths, as revealed by City PM, became the first major firm to link a firm-wide bonus to its workforce’s use of AI.
“Law firms are not just using AI to deliver greater productivity. They are increasingly building brand new services and new revenue streams around AI-powered solutions,” Shatwell added.
However, while AI’s potential to reduce costs and improve efficiency is making waves within the industry, trust from clients remains low, as a survey in April by Robin AI found that only 10 per cent of people fully trust law firms’ with the tech.
The elephant in the room for the legal sector that has yet to be properly addressed is the effect AI will have on pricing, a topic law firms have been relatively quiet about.
Debate continues as to the technology’s impact on jobs and training. Unlike the cracks that are starting to show within other sectors, especially consultancy, there have been no major layoffs in the legal industry.
However, as Greg Nieuwenhuys, senior partner at Generative AI Strategy, told City PM in May, “AI will transform the job landscape. Some roles will change or disappear, but the majority will remain.”