LONDON — A recent report indicates that nearly two-thirds of lawyers are utilizing artificial intelligence to enhance their professional tasks. However, only 17% report that their firms have a fully integrated AI strategy, with about two-thirds claiming that their organization’s AI culture is either slow to develop or entirely lacking. This marks a significant rise in adoption from earlier this year when just 41% of lawyers indicated they were employing AI in their work, reflecting a 15% increase over approximately eight months.
The findings from LexisNexis highlight an “AI culture clash,” revealing a disparity between lawyers’ eagerness to embrace AI and the hesitance of many firms to adopt the technology. The percentage of lawyers without plans to use AI has diminished, dropping from 15% to 6%. While around 40% of firms report that they are experimenting with AI, they acknowledge that advancement is moving slowly.
Professionals are optimistic that AI can help boost billable hours, with 56% of current AI users and 61% of those considering it stating this goal. Moreover, 53% of current users aim for a better work-life balance, with large law firms reporting the most significant benefits. About 61% of large firms, compared to 55% of medium firms and 49% of small firms, are leveraging time saved through AI to enhance their billing efficiency.
The report indicates that private practice lawyers are using the time gained from AI for both financial gains and personal well-being. More than half reported reallocating their extra time to generate additional billable work, while 53% indicated they are using this time for improved work-life balance.
Despite the speed of AI adoption increasing, various factors are hindering broader progress. Sarah Barnard, Director of AI Delivery at Linklaters, emphasizes that firms are hesitant to invest without clearer evidence of the potential return on investment. The research suggests that as firms increasingly track time saved with AI—as more than half are now doing—it could lead to new billing models in response to shifting client expectations.
Leadership, or the lack thereof, is also cited as a significant barrier. Michelle Holford, Chief Commercial Officer at Slaughter and May, asserts that effective AI integration requires strategic direction and communication from leadership, alongside support for staff training. Without the necessary space and time for skill development, adoption efforts could falter.
Successful change management is critical, according to Bhavisa Patel, Director of Legal Technology at Eversheds Sutherland. She points out that even the best AI solutions can yield limited benefits if employees do not understand how to utilize them effectively.
There is increasing pressure on firms to engage with AI, especially regarding recruitment and retention. Approximately 18% of private practice lawyers indicated they would contemplate leaving their firms if adequate investment in AI is lacking, a figure that rises to 26% among those in larger firms. Additionally, 39% of respondents recognize personal career risks tied to underutilizing AI, illustrating a growing understanding that AI may not replace lawyers, but could alter the competitive landscape based on how effectively this technology is embraced.
Stuart Greenhill, Senior Director of Segment Management at LexisNexis UK, emphasizes the commercial benefits of AI for lawyers. He notes that firms focusing on AI as a strategic investment rather than merely an efficiency tool are likely to achieve greater profitability and client satisfaction.
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