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Reshaping the Legal industry: How can AI help law firms in the future?

As artificial intelligence (AI) continues to evolve, it’s not just supporting businesses but also influencing how they develop. In particular, the widespread adoption of AI in law and legal practice shows that this technology offers a wealth of possibilities for the sector.  

In this article, we’ll explore how AI is shaping the legal industry and what it means for the future of legal services. From automation and research to predictive analytics, these exciting developments are set to drive innovation and growth in law firms. 

9 minutes

Written by Stu White, Product & Engineering Director at Access Legal.

The rise of AI in law and legal practice

Delivering legal services requires handling huge amounts of information, which makes it a particularly relevant sector for streamlining processes through automation. AI was being used in legal practices as early as 2016, beginning with the emergence of chatbots, allowing firms to answer questions quickly and accurately, freeing up lawyers to work on more complex tasks. 

A 2024 LexisNexis survey of over 1,200 legal professionals across the UK found that AI adoption has more than doubled in the last six months. The survey also showed that nearly a third of all executives surveyed have a dedicated budget for generative AI in 2024. While most firms are spending less than 1% of their revenue on this, these statistics are a clear indication of the growing role of AI in the legal industry.  

How can AI help law firms?

AI is helping law firms to transform the way lawyers work by offering solutions in several key areas. As the legal technology has continued to develop, so has its adoption within law firms, allowing them to not only streamline processes but also to unlock strategic insights and deliver new legal services. 

From automating repetitive tasks such as document review and case research to unlocking predictive analytics for case outcomes, AI has become a key tool for practices of all sizes. In their survey, LexisNexis found that the top uses of AI in legal firms were: 

  • Legal research (55%) 
  • Summarising documents (52%) 
  • Drafting documents (39%) 
  • Contract analytics (31%) 
  • Conducting diligence (28%) 

Let’s explore some of the key aspects of how AI can help law firms in more detail.

1. AI-powered legal research 

AI is revolutionising legal research, empowering firms to analyse vast volumes of data efficiently. By sifting through case law, statutes and precedents, AI tools can quickly pinpoint relevant information, saving valuable time for legal professionals. GenAI further accelerates this process by creating summarised case briefs or key legal documents within minutes. 

2. AI legal document creation 

Creating legal documents can be a time-consuming process, but tools are now able to assist in drafting contracts, legal forms and agreements using predefined templates or customisable parameters. As well as saving time, these tools also ensure that legal documents are created accurately and consistently, reducing the risk of errors. 

3. AI legal chat 

AI-powered chatbots are becoming a valuable asset for law firms, helping to improve client engagement by answering common legal questions and scheduling appointments. Integrating AI chat tools allows law firms to offer 24/7 client support, reducing response times and enabling lawyers to focus on more pressing legal matters. 

4. Enhanced due diligence 

Due diligence is an essential but resource-heavy process. AI can streamline this by analysing large volumes of documents, contracts, and data in a fraction of the time it would take manually. With AI tools, firms can review contracts for inconsistencies, potential legal risks and compliance issues, greatly improving both speed and accuracy in this critical area. 

5. Predictive analytics 

Predictive analytics is one of the most powerful applications of AI in law and legal practice. By analysing historical legal data, such as past verdicts and settlement patterns, AI tools can assess the likelihood of various legal outcomes, helping lawyers better anticipate potential challenges and plan their strategies. 

The future of AI in law and legal practice

While AI’s impact on efficiency is undeniable, its potential extends beyond streamlining workflows. AI is set to revolutionise every aspect of legal practice, from client engagement to developing new legal strategies, making it essential for law firms to understand and embrace this technology. 

Here are some of the ways we can expect AI to support legal practices in the future. 

Levelling of the playing field  

AI is empowering smaller law firms and solo practitioners to compete with larger, resource-rich organisations. By automating routine tasks like document review, scheduling, and client communication, AI allows these smaller firms to operate more efficiently and take on higher volumes of cases. This levelling of the playing field gives them the ability to expand their client base and provide higher-quality services without needing extensive manpower or financial resources. 

Enhancing legal compliance 

Another key part of how AI can help law firms is by helping to ensure that contracts, agreements and other legal documents comply with complex and ever-changing regulations. AI tools can automatically cross-reference against current laws, reducing the risk of non-compliance, which is a major concern for firms working with heavily regulated industries like finance and healthcare. 

AI also helps reduce legal risks by providing continuous updates to legal teams on changes in laws and regulations. While traditional compliance processes can be slow and resource intensive, AI-driven tools can monitor legislative changes in real time and alert firms to any necessary adjustments. This proactive approach to compliance saves firms from costly fines and litigation risks, all while ensuring that legal teams can focus on higher-level strategic work. 

Driving innovation 

AI is revolutionising how law firms develop their legal strategies by uncovering patterns and insights from vast datasets. This ability to process large volumes of legal information allows firms to identify new legal precedents, emerging trends and potential outcomes that might otherwise go unnoticed. As a result, law firms can develop more informed, creative, and innovative legal strategies, especially in complex or fast-moving cases. 

Adopting AI in law and legal practices can also help firms to move away from traditional methods and embrace more dynamic, forward-thinking approaches. The ability to generate data-driven insights allows firms to offer personalised legal strategies based on predictive analytics and risk assessments, enhancing outcomes for clients. This not only improves the quality of their services but also positions the firm as a leader in legal innovation, helping to attract more clients and improve their market standing. 

Preparing your law firm for the AI future

It’s crucial for law firms to prepare for AI integration. Those who adopt AI efficiently will enjoy significant benefits, while those who delay may find themselves struggling to keep up in an increasingly competitive market. Preparing now means reaping the rewards of greater efficiency and client satisfaction in the future. 

Stay informed 

Staying informed about the latest Legal AI trends is essential for law firms aiming to remain competitive in the fast-evolving legal landscape. As AI technology continues to develop, the capabilities it offers expand, and firms that fail to keep up risk falling behind. Monitoring new advancements helps to ensure that your firm is well-prepared for future changes, enables you to anticipate shifts in client expectations, and gives you the opportunity to offer cutting-edge solutions that set you apart from competitors. 

Regular internal meetings to discuss potential applications of AI can help your firm proactively integrate the most relevant tools and position itself as a leader in adopting new technology. Designate a person in your firm to regularly review AI developments and assess their potential impact on your processes. Attend relevant conferences, subscribe to industry publications and engage with tech experts to gain insights as they emerge. 

Identify opportunities for integration 

Assessing your firm’s operations and identifying areas where AI can add value is crucial. By evaluating which processes are time consuming, repetitive or prone to error, you can pinpoint where AI can have the greatest impact on productivity and client service. This careful evaluation will help you to focus your resources on the areas that offer the highest return on investment. 

Conduct a thorough audit of your current workflows, identifying tasks that can be automated or enhanced by AI. Once you have a clear understanding of which processes would most benefit from the technology, look for AI solutions that fit your needs. It’s important to research each tool in detail, ensuring that its capabilities align with your firm’s long-term objectives. 

Invest in training 

As AI becomes more prominent in legal practice, investing in staff training is critical to ensure your team can use these tools effectively and responsibly. AI tools are only as useful as the people operating them, so it’s essential to prioritise education on both the technical and ethical aspects of AI. Employees should understand how to use AI tools to enhance their work, but also the legal considerations involved in AI usage, such as data privacy and bias prevention. 

It’s important to develop a comprehensive training programme tailored to your firm’s specific AI tools. This can include workshops, online courses or one-on-one coaching sessions. Additionally, consider bringing in external AI experts or partnering with legal technology providers to guide your staff through the learning process. Ensuring your team is confident in using AI tools will maximise the benefits and help to avoid potential pitfalls. 

Develop an AI strategy 

Creating a well-defined strategy is essential for the success of AI in law and legal practices. Outline how AI will be used to achieve your firm’s specific goals, such as increasing efficiency, improving client service, or expanding your firm’s offerings. Aligning AI adoption with your firm’s objectives ensures that you’re using the technology purposefully rather than adopting it for its own sake. 

Collaborate with senior leadership to set clear benchmarks for success and map out a timeline for AI implementation. Partnering with a trusted tech provider like Access Legal can help to support the transition and provide ongoing expertise, ensuring your AI strategy is both practical and future-proof. Regularly review and adjust the strategy to make sure it keeps up with advancements in AI and your evolving business needs. 

Will your law firm be embracing AI?

AI and law firms are shaping the future of legal practice together. Rather than replacing lawyers, AI is empowering them to be more efficient and effective, allowing law firms to achieve greater successes. By embracing AI, you can streamline workflows, enhance client relationships and improve legal outcomes for all parties. 

Now you’ve explored how AI can help law firms, it’s time to future-proof your practice. Contact us to talk to an expert about how implementing AI can support your legal firm, or book a demo to see our legal software solutions in action for yourself. 

Be the first to know about any future AI developments that could revolutionise your law firm