By Sarah Murphy, General Manager of EMEA, Clio
In just a few years, AI has rapidly evolved into an essential tool for the legal industry. Despite initial hesitation – and some lingering scepticism – the rapid rise of this technology is transforming how legal services are delivered.
The latest Legal Trends Report, conducted by Clio, reveals the extent of this shift: 96% of UK law firms are using AI, and nearly two-thirds plan to increase usage over the next 12 months. This widespread adoption is reshaping the legal landscape, making life easier for lawyers, more productive for clients, and more profitable for firms.
“96% of UK law firms are using AI, and nearly two-thirds plan to increase usage over the next 12 months”
In this article, we explore the uptake of AI in a little more detail.
From early adopters to industry standard
The legal sector’s embrace of AI has been swift and decisive. Currently, 56% of UK firms have adopted AI widely or universally, with 38% saying it is already helping to improve client satisfaction. Significantly, many firms also use it for a wide range of uses.
AI tools are revolutionising various aspects of legal work, from document drafting to e-discovery and workflow management. This shift has allowed firms to handle larger caseloads more efficiently, creating a competitive edge that late adopters of AI are already struggling to match.
Boosting productivity
The biggest single impact of AI is likely on productivity. Our survey shows that 43% of lawyers have reported productivity gains since adopting the technology, which has been complemented by a 29% reduction in operational costs directly due to AI.
The greatest productivity improvements are tied to AI’s automation of routine tasks like contract reviews, invoicing, and legal research. This allows lawyers to dedicate their time to complex legal strategies and deeper client engagements.
“AI is enhancing the lives of lawyers while also driving improvements for their firms”
Consequently, AI is enhancing the lives of lawyers while also driving improvements for their firms. In fact, one in five solicitors report an improved work-life balance, with AI facilitating more flexible scheduling and reducing after-hours workloads. 41% of firms also attribute recent growth to AI adoption, signifying its role in shaping the future of legal practice, automating routine tasks, uncovering data-driven insights, and streamlining case management.
Managing client relationships
As law firms change how they work, they are also increasingly changing how they charge for that work, with a notable shift towards fixed-fee billing. This brings clarity and peace of mind for clients, fostering stronger relationships. Our research indicates that 54% of law firms believe fixed-fee billing will soon replace traditional billable hours, with only a fifth believing the use of fixed fees will remain stable.
AI is also revolutionising client interactions. 45% of firms use AI-powered tools like chatbots and mobile apps to provide quick, clear updates to clients. However, only 7% of firms say AI helps them gain more clients. That will change, however, as AI’s speed and flexibility will allow firms to meet client expectations in unprecedented ways, ultimately building stronger relationships and driving business growth.
Don’t lose sight of the ethical challenges
While AI offers numerous benefits, it also raises ethical challenges that require careful consideration. Issues such as bias in AI systems-particularly in areas like facial recognition, predictive analytics, and hiring tools-highlight the need for vigilant oversight. However, these challenges relating to legal liability-when AI delivers incorrect advice, for example-are not insurmountable. With thoughtful implementation, AI can complement rather than replace skilled professionals, enhancing the efficiency and quality of legal services.
To mitigate these risks, law firms can utilise a technology partner to adopt several proactive strategies. First, they should prioritise the selection of AI tools that have tested for biases and inaccuracies. Regular audits and updates of AI systems are essential to ensure continued compliance with standards. From the lawyer’s perspective, ensure they’re also trained to understand and manage AI’s capabilities and limitations. Maintaining a framework of human oversight will be vital to safeguard accuracy, fairness, and ethical compliance. Only then will firms be able to maximise AI adoption’s many benefits.
Embracing AI for long-term growth
AI is already reshaping the legal landscape and will continue to do so, unlocking unprecedented opportunities for efficiency, improved client experiences, and business growth. As the industry evolves, law firms must view AI as a tool for immediate productivity gains and as a strategic asset essential for long-term success in an increasingly competitive market.
However, rapid adoption must be balanced with ethical considerations and a client-centric mindset. The future of legal practice lies in integrating AI’s transformative potential with the human expertise that defines the profession. As AI continues to advance, those who embrace it ambitiously but are sensitive to ethical and regulatory challenges will be best positioned to thrive in this new era of legal practice.
“rapid adoption must be balanced with ethical considerations and a client-centric mindset”
Looking ahead to 2025 and beyond, the integration of AI in the legal sector represents a significant shift in how legal services are delivered and managed. From enhancing productivity to transforming client interactions and billing models, AI touches every aspect of legal practice.
As we navigate this AI-driven landscape, law firms must embrace advancements while maintaining the legal profession’s core values. Those who do will find themselves at the forefront of a transformed legal landscape, ready to meet clients’ evolving needs.
Sarah Murphy
