³ÉÈËÓ°Òô

AI adoption in the legal sector is accelerating at breakneck speed. A recent report by ³ÉÈËÓ°Òô found a staggering 82% of UK lawyers have either embraced generative AI or have plans to do so in the near future. This figure represents a nearly four-fold increase from the summer of 2023, when only a fraction of legal professionals had adopted this transformative technology.

The driving force behind this rapid AI adoption is the need for faster delivery of legal services. In an increasingly competitive legal landscape, where clients demand efficiency and expediency, AI has emerged as a powerful tool to streamline processes and expedite turnaround times. The report reveals that a remarkable 71% of lawyers cited faster work delivery as a key benefit of AI, with 52% identifying it as the primary advantage.

"The kind of applications we're seeing – the way it's been rolled out, the innovation, the investment – it's off the scale," says Jonathan Kewley, Partner and Co-Chair of the Global Tech Group at Clifford Chance. "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."

How Lexis+ AI speeds up legal research safely

Beyond speed, the report highlights other significant benefits of AI adoption, such as improved client service (54%) and gaining a competitive advantage (53%). As clients become more discerning and demanding, AI offers a means to enhance the quality and responsiveness of legal services, ultimately leading to greater client satisfaction.#

The time-saving abilities of AI are a game-changer for legal professionals, enabling them to focus on higher-value tasks and deliver more efficient services.

"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," says May Winfield, Global Director of Commercial, Legal and Digital Risks at Buro Happold.

Training materials on AI

"The legal profession has remained largely unaffected by new technology for several decades and was overdue for a shake-up," notes Laura Hodgson, Generative AI Lead at Linklaters.

Chris Tart-Roberts, Head of Lawtech and Chief Knowledge & Innovation Officer at Macfarlanes, echoes this sentiment, stating, "As we learn more about the potential of generative AI, we expect it to translate into improved client service and more efficient service provision."

AI's ability to streamline complex and repetitive tasks, automate research and drafting processes, and enhance collaboration among colleagues and clients is transforming the way legal work is conducted. As one partner at a law firm with over 100 fee-earners attests, "Generative AI is streamlining my legal research and drafting processes, allowing for faster turnaround times and more comprehensive analysis. For those not using it, my advice is to start integrating AI into routine tasks."

I want to read the full generative AI survey findings

However, this shift towards AI-driven efficiency is expected to bring changes to billing structures within the legal industry. The survey found that 39% of private practice lawyers now expect to adjust their billing practices due to AI, up from only 18% in January 2024. While only 17% believe that AI will entirely replace the billable hour model, there is a growing recognition that traditional pricing structures may need to evolve to accommodate the efficiencies brought about by AI.

"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," argues a General Counsel and Company Secretary at a biotech firm. "This change should be based on deliverables and value added, rather than just hours spent."

Mark Smith, Director of Strategic Markets at ³ÉÈËÓ°Òô, acknowledges that "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."

As routine tasks become automated, reducing the time needed to complete them, the focus is expected to shift from hours worked to value delivered. "AI will push the legal industry towards value-based billing models," predicts one law firm partner. "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."