LONDON — A transformative wave, spurred by the advent of generative artificial intelligence (genAI), is beginning to ripple through the UK’s legal sector, according to a recent survey by LexisNexis. The comprehensive study, which canvassed opinions from over 800 lawyers, revealed a noticeable shift in attitudes towards the integration of AI technologies within legal practices, particularly concerning billing and operational efficiencies.
The report indicates a growing willingness among private practice lawyers to reconsider traditional billing models in light of AI advancements. While 39% of respondents anticipate changes in how their firms will charge for services, a stark contrast to just 18% in January, actual adjustments have been minimal so far, with only 2% having altered their billing structures as a result of AI integration.
This cautious approach to transformation reflects the broader hesitation within the industry to abandon time-tested methods, despite the potential cost and time efficiencies offered by AI technologies. The survey highlights a recognition among lawyers that while change is imminent, the transition may be gradual and require a shift in client expectations and behavior.
Clients, especially those dealing with high-volume or frequently occurring legal matters, could drive this change. They stand to benefit most from fixed-fee arrangements, which are more feasible with the adoption of genAI tools that streamline and expedite routine tasks. However, despite this potential, there remains a gap between the expectation of change and its actual implementation.
For many within the sector, it’s a familiar scenario reminiscent of individuals acknowledging the need to quit unhealthy habits but continuing them until a significant event forces a reconsideration. Similarly, a pivotal shift in the legal industry might necessitate either a dramatic market disruptor or progressive, bottom-up changes over time.
Future projections for the legal industry suggest a gradual but inevitable shift toward more AI-driven practices. This evolution includes increases in the accuracy and capabilities of AI technologies, making them invaluable across various economic sectors. As corporates, banks, insurance companies, and governments normalize the use of genAI, legal teams are predicted to align more closely with these technologies, further influencing law firms to adapt to new client demands and expectations.
A positive feedback loop could emerge as more legal professionals use AI tools, enhancing the products and increasing reliability. Such advancements would likely shift expectations further, encouraging law firms to recalibrate their services and approaches. The consequent cultural shift within firms might lead to a broader adoption of tech-focused business models as lawyers move between in-house roles and private practices.
The LexisNexis survey also sheds light on current usage of AI technologies among UK lawyers, with 41% reporting they already utilize genAI in some capacity, primarily to expedite work processes. This high adoption rate underscores a significant tilt towards embracing new technologies to enhance efficiency and productivity in the legal field.
As the industry stands at the cusp of potentially significant changes, the key question remains not on the possibility of these shifts, but rather on their timing and the extent to which they will permeate standard legal practices. With only a small fraction of firms currently embracing new billing models influenced by AI, the broader adoption and its impact on the legal landscape is still to unfold, likely setting a course for the coming decade.