In a significant shift within the legal profession, four out of five lawyers are now either using or planning to implement artificial intelligence (AI) tools. However, the potential implications of these tools on legal fees remain ambiguous, a recent study reveals.
The research, titled ‘Fast law: why speed is the priority for lawyers using AI’ by LexisNexis, highlights that the legal market is undergoing substantial transformation. As firms increasingly adopt AI to streamline operations and improve service delivery, they face the challenge of preserving accuracy, confidentiality, and ethical standards. The study suggests that firms which adeptly manage this transition while maintaining professional integrity may gain a competitive advantage in the rapidly evolving legal landscape.
The study surveyed 803 lawyers and legal support workers across the UK and Ireland, revealing a dramatic increase in the use of generative AI for work purposes—from 11% in July 2023 to 41% by September 2024. Similarly, the percentage of lawyers planning to use AI increased from 28% to 41%, while those with no plans to adopt the technology decreased from 61% to 15%.
Director of legal technology at Eversheds Sutherland, Bhavisa Patel, notes that AI presents short to medium-term benefits in areas like legal research, document review, and contract analysis, allowing lawyers to focus more on complex and strategic tasks. Despite these immediate advantages, the legal sector is still determining the long-term problems AI can address.
Law firms such as Clifford Chance encourage AI use among their staff, even questioning those who refrain from using it. Charles Russell Speechlys reported that nearly half of its 1,200+ staff were utilising AI monthly, answering thousands of inquiries over recent months. Bird & Bird’s partner, Pawel Lipski, acknowledged AI’s current role as a supplementary research tool and basic text generator but cautioned that this might alter training methods for junior lawyers.
The survey also indicated that 60% of firms have implemented at least one internal change to incorporate generative AI, with the most common change being offering AI-powered products to staff, increasing from 15% to 36%. Large firms, in particular, are driving these changes, with 78% having made strides to advance AI integration. There is also a noted increase in AI activity among corporate in-house legal teams and at the bar.
AI is hailed for delivering work faster by seven out of ten lawyers, enhancing client service for 54%, and providing a competitive edge for 53%. Nevertheless, the study uncovered uncertainties regarding how AI will alter billing practices—while 39% of private practice lawyers anticipate changes to their billing models due to AI, only a minority expect it to eliminate the billable hour model.
Concerns about inaccuracies from generative AI platforms persist, with widespread worries about data reliability. Gerrit Beckhaus of Freshfields Bruckhaus Deringer emphasises the importance of the ‘lawyer in the loop’ principle to mitigate risks associated with AI use. Despite AI’s infancy in the legal field, the research underscores a growing reliance on AI and suggests that potential over-reliance could be a concern for half of the surveyed lawyers.
While the enthusiasm for AI within the legal profession is unmistakable, uncertainty over its impact on traditional practices, especially regarding billing, remains a point of contention. As the technology evolves, firms are challenged to balance the benefits of AI with maintaining human oversight and ethical standards.
