A new report from Thomson Reuters reveals that 75 percent of the Top 20 UK law firms are now actively promoting their use of artificial intelligence (AI) to clients, showcasing their early leadership in embracing the transformative technology.
In contrast, only 45 percent of the next 20 biggest law firms, ranked 21-40 by size, are doing the same, underscoring a widening gap between larger and mid-tier firms in their approach to AI integration.
The research highlights that the largest UK firms are not only more advanced in adopting AI but also in promoting it as a key aspect of their client services, positioning AI as a “game-changing” tool within the legal profession.
Lawyers Embrace AI’s Transformative Potential
According to the Thomson Reuters 2024 Future of Professionals report, 79 percent of UK lawyers expect AI to have a transformative impact on the legal sector, with the technology’s potential to enhance productivity and client service creating widespread enthusiasm.
The report identifies key trends among the top law firms:
- Third-Party Solutions Dominate: 65 percent of the Top 20 UK firms have adopted third-party AI-powered tools, while 35 percent have developed their own AI technologies for internal use.
- AI Leadership: 35 percent of the Top 20 law firms have appointed senior executives, such as heads of AI, to oversee their adoption of the technology. This figure drops to just 20 percent for firms ranked 21-40.
- Dedicated AI Teams: 60 percent of the largest firms have established internal teams focused on digital transformation through AI, compared to 30 percent of mid-tier firms.
Law Firms Boost AI to Stay Competitive
John Shatwell, head of Legal Professionals, Europe at Thomson Reuters, emphasised the growing trend of law firms marketing their AI capabilities alongside their legal expertise. “The legal industry has been incredibly quick to identify the potential of AI,” Shatwell said. “There is a growing consensus that AI will be essential to maintaining a competitive edge and meeting client expectations.”
Shatwell also noted the significant lead of the largest law firms in AI adoption, but suggested the gap may narrow as AI becomes increasingly integrated into existing legal tools. “The largest firms seem to be adopting AI at a rate that far outpaces the next tier,” he said. “However, as more AI is introduced into legal research tools and other solutions, that gap may diminish.”
Internal and External Pressure for AI Adoption
Despite the enthusiasm, the report also points to concerns among some lawyers that their firms are lagging in AI adoption. Around 29 percent of respondents believe their firms are moving too slowly in implementing AI solutions. This indicates potential internal and external pressure for law firms to accelerate their AI initiatives to stay competitive.
AI to Boost Productivity and Client Service
Law firms are not only leveraging AI to attract new clients but also to improve internal efficiency. The Future of Professionals report found that lawyers expect AI to save them up to 138 hours in the first year of use by automating routine tasks, freeing up time for more complex legal work.
As AI continues to reshape the legal landscape, the divide between large and mid-tier firms may become a key factor in the industry’s evolution, with firms increasingly focusing on AI as a critical component of their services and operations.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
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