Clients are increasingly demanding faster and more efficient legal solutions. As a result, the UK legal sector is turning to cutting-edge technology to meet these expectations - most notably, generative AI.
The recent surge in AI adoption among lawyers is not only transforming the way legal work is conducted but also paving the way for faster and more streamlined service delivery.
Clients and internal stakeholders alike are no longer willing to wait for prolonged turnaround times. Whether it's drafting contracts, conducting legal research, or reviewing documents, the need for speed and efficiency has become paramount. This shift in expectations has prompted law firms and in-house legal teams to seek innovative solutions that can accelerate their processes without compromising quality.
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Enter generative AI, a game-changing technology that has is already revolutionising the legal industry. By leveraging advanced natural language processing and machine learning capabilities, AI tools can streamline routine tasks, freeing up lawyers to focus on more complex and strategic work. From legal research and document analysis to contract drafting and due diligence, AI is proving to be an invaluable asset in delivering faster and more efficient legal services.
One of the key advantages of AI adoption is its ability to enhance productivity and accuracy. By automating repetitive and time-consuming tasks, lawyers can significantly reduce the time spent on administrative work, allowing them to focus on higher-value activities that require human expertise and judgment. Additionally, AI-powered tools can quickly identify patterns, inconsistencies, and potential risks, ensuring a more thorough and accurate analysis of legal documents and cases.
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In the competitive legal landscape, the ability to deliver faster and more efficient services can be a significant differentiator. Law firms and in-house legal teams that embrace AI technology are better positioned to meet client demands, streamline processes, and ultimately gain a competitive edge. By leveraging AI to accelerate legal work, these organisations can provide clients with timely and cost-effective solutions, fostering stronger relationships and building a reputation for excellence.
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The ³ÉÈËÓ°Òô survey findings paint a compelling picture of the rapid AI adoption within the legal sector. The number of lawyers using generative AI for work purposes has nearly quadrupled in just over a year, jumping from 11% in July 2023 to an impressive 41% in September 2024. Additionally, the percentage of lawyers planning to adopt AI has also increased significantly, rising from 28% to 41% during the same period.
Jonathan Kewley, Partner and Co-Chair of the Global Tech Group at Clifford Chance, aptly describes the level of adoption as "extraordinary," with innovation and investment reaching unprecedented levels. "The kind of applications we're seeing – the way it's been rolled out, the innovation, the investment – it's off the scale."
While AI is undoubtedly a valuable tool in the medium term, Kewley believes its use will only accelerate in the longer term. "It's important that lawyers are familiar with AI technology in the same way they are with the internet now. Those that don't use it will face a bit of an existential risk."
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Laura Hodgson, Generative AI Lead at Linklaters, believes technology's disruption of the legal sector was only a matter of time. "The legal profession has remained largely unaffected by new technology for several decades and was overdue for a shake-up." Hodgson added that while AI tools are still in the early stages, they're already adding real value to how lawyers work.
The short to medium-term gains of generative AI will focus on streamlining routine, administrative tasks, says Bhavisa Patel, Director of Legal Technology at Eversheds Sutherland. "Activities such as legal research, document review, and contract analysis will become simpler and quicker, allowing lawyers to concentrate on complex and strategic work."
In the medium to long term, Patel acknowledges that the possibilities are vast, but the legal sector has yet to clearly identify the specific problems generative AI will solve. "A solution without a problem is ultimately ineffective, and until these issues surface, the future of GenAI remains uncertain."
Encouraging AI adoption requires a top-down approach, as emphasised by Joe Cohen, the Director of Innovation at Charles Russell Speechlys. Senior leadership plays a crucial role in promoting AI usage, with Cohen highlighting that nearly half of their 1,200+ staff are using AI monthly, thanks to firmwide training, regular communications, and a comprehensive engagement plan.
Kewley reveals they've made the decision to share AI tools with everyone at Clifford Chance and actively encourage them to use it. "If people aren't using AI, we're starting to follow up and ask them why, because we really want them to benefit from it."
Pawel Lipski, a partner at Bird & Bird, says they're currently using AI as an additional research tool, basic text generator, and to assist with reviewing documents. In the near-future, however, Lipski thinks they will need to redefine how they train junior lawyers. "As generative AI tools become better in research and drafting, it may be very challenging for younger colleagues to get proper training. It will certainly not be the kind of training I had."
Involving employees at an early stage is crucial to widespread adoption and understanding, according to Jodie Hill, the Managing Partner of employment law firm Thrive Law. "We've asked our teams how they think AI fits in with, or helps with, their roles. We've got them involved at all different levels so it created engagement from an early stage."
The survey revealed that 60% of the legal industry has made at least one internal change to implement generative AI, reflecting the growth of this rapidly evolving technology. The most common change was offering an AI-powered product to staff, which rose from 15% in January 2024 to 36% by September 2024. There was also significant growth in developing policies on the use of generative AI (11% to 24%) and providing AI-related training for staff (11% to 18%).
As expected, large law firms are at the forefront of driving AI adoption, with 78% having made changes to implement generative AI. "We have been early adopters for many of the next-generation solutions we use and have regular roadmap discussions with our key vendors," says Greg Baker, Global Head of Practice Innovation at Linklaters.
There has also been a stark rise in AI activity within corporate in-house legal teams, jumping from 47% earlier this year to 74%. This was also true with the bar, rising from 8% to 32% throughout the year.
Baker from Linklaters says his team is often approached by clients wanting advice on the most suitable AI solutions. "In-house legal teams need help navigating the explosion of generative AI solutions on the market, seeing through the noise, and providing solutions that deliver real value."
Lawyers listed "faster legal work" as the top benefit of AI, with a staggering 71% citing delivering work faster as a key advantage. This trend is prompting many to question the suitability of existing pricing methods.
Gerrit Beckhaus, Partner and Co-head of the Freshfields Lab at Freshfields Bruckhaus Deringer, highlights that AI allows lawyers to identify key data points, patterns, and insights at a speed and scale unmatched by traditional research methods. "Generative AI not only retrieves information but contextualises it, connecting disparate pieces of data and our knowledge pool."
May Winfield, Global Director of Commercial, Legal and Digital Risks at Buro Happold, thinks the time-saving abilities of AI are of huge benefit. "AI enables my commercial and legal team to have more time in what is really of value – the analysis of issues and risks, deciding on solutions and mitigation, and commercially-minded support."
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Kewley from Clifford Chance says generative AI simply makes the lives of lawyers easier. "It makes those labour-intensive tasks much quicker, giving our team more time for the interesting work, because they can get answers to their legal questions faster."
Chris Tart-Roberts, Head of Lawtech and Chief Knowledge & Innovation Officer from Macfarlanes, agrees that generative AI will bring about significant time-saving benefits in both the short and mid-term. "As we learn more about the potential of generative AI, we expect it to translate into improved client service and more efficient service provision."
Bivek Sharma, Chief Technology Officer & Head of Alliances for Tax, Legal and People at PwC, highlights that AI allows lawyers to create rich, personalised, and relevant insights and solutions for clients. "For my team, generative AI tech is a game-changer that enhances our productivity, efficiency and quality of service delivery. It allows us to automate and streamline complex and repetitive tasks, focus on higher-value and creative work, and collaborate more effectively with our colleagues and clients."
Tom Whittaker, a Director and Solicitor Advocate in the dispute resolution team of Burges Salmon, says AI presents the opportunity to interrogate data in the same way we might ask a colleague a question. "The ability to ask questions in natural language, rather than trying to guess what keywords may be of relevance, is greatly advantageous."
The majority (71%) of in-house teams expect their external counsel to use generative AI, but this shift towards AI-driven efficiency is expected to bring changes to pricing structures.
The survey also found 39% of private practice lawyers now expect to adjust their billing practices due to AI, up from only 18% in January 2024.
However, only 17% of those in private practice think AI will end the billable hour model, while 40% believe it will remain in place and 42% are uncertain about its impact.
A General Counsel and Company Secretary at a biotech firm argues that lawyers need to get ahead of AI, otherwise they will find themselves too expensive and redundant. "The billable hour rewards inefficiency. AI removes the excuse of hours spent, so private practice lawyers will have to change the way they measure their contribution."
This change should be based on deliverables and value added, rather than just hours spent, she argues.
Mark Smith, ³ÉÈËÓ°Òô' Director of Strategic Markets, says properly trained and grounded generative AI can ultimately underpin certain legal tasks being undertaken faster and at higher quality than that done by a human alone. "The impact of this on price will depend on many different factors – the importance and number of those tasks in the overall workflow, the pricing mechanism at play, the commercial relationship between the client and law firm, and the overall level of competition in that segment of the market."
The law firm partner believes the focus will soon shift from hours worked to value delivered. "AI will push the legal industry towards value-based billing models as routine tasks become automated, reducing the time needed to complete them."
One associate shared that AI will provide the legal sector with an unrivalled opportunity to demonstrate why their services are valuable. "This will make the market more competitive, as firms will need to demonstrate what they offer that other firms don't, and what AI can't."
Reviewing pricing and billing models is not something that should be done hastily. However, this shift towards greater flexibility around pricing is part of a larger ongoing trend, as firms seek to offer a wider range of services to clients beyond pure legal advice and representation.
While the benefits of AI adoption are undeniable, it is crucial to strike a balance between technology and human expertise. AI should be viewed as a powerful tool to augment and enhance legal services, not replace the critical thinking and judgment of experienced lawyers. By combining the strengths of AI with human intelligence, the legal sector can deliver faster and more accurate services while maintaining the highest standards of quality and ethical practice.
The rapid adoption of AI technology in the UK legal sector is reshaping the way legal services are delivered, with a focus on speed, efficiency, and client satisfaction. As clients demand faster turnaround times, law firms and in-house legal teams are leveraging the power of AI to streamline processes, enhance productivity, and gain a competitive edge. However, this shift towards AI-driven efficiency is also prompting a re-evaluation of traditional pricing models, with a growing emphasis on value-based billing and demonstrating the unique value proposition of human expertise. By striking the right balance between technology and human intelligence, the legal industry can navigate this transformative era and deliver exceptional value to clients.
Read the full findings from the generative AI survey of 800+ UK lawyers
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