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The number of lawyers in the UK using generative AI for work purposes has almost quadrupled in a little over a year, a new ÀÏ˾»úÎçÒ¹¸£Àû survey has found. AI users jumped from 11% in July 2023 to 41% in September 2024.

The percentage of lawyers planning to use AI also jumped from 28% to 41% over the same time period.

82% of lawyers now use or plan to use AI for work

Also of note is the stark decrease in the number of lawyers with no plans to adopt AI, which dropped (from 61%) to 15%.

Jonathan Kewley, Partner and Co-Chair of the Global Tech Group at Clifford Chance, says the level of adoption taking place across the legal sector is extraordinary.

"The kind of applications we're seeing – the way it's been rolled out, the innovation, the investment – it's off the scale."

While AI is a useful tool in the medium term, Kewley believes its use will only accelerate in the longer term. 

"It's important that lawyers are familiar with AI technology in the same way they are with the internet now. Those that don't use it will face a bit of an existential risk."

Laura Hodgson, Generative AI Lead at Linklaters, believes technology's disruption of the legal sector was only a matter of time.

"The legal profession has remained largely unaffected by new technology for several decades and was overdue for a shake-up."

Hodgson added that while AI tools are still in the early stages, they're already adding real value to how lawyers work.

The short to medium-term gains of generative AI will focus on streamlining routine, administrative tasks, says Bhavisa Patel, Director of Legal Technology, Eversheds Sutherland.

"Activities such as legal research, document review, and contract analysis will become simpler and quicker, allowing lawyers to concentrate on complex and strategic work."

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In the medium to long term, Patel says the possibilities are vast, but the legal sector has yet to clearly identify the problems generative AI will solve.

"A solution without a problem is ultimately ineffective, and until these issues surface, the future of GenAI remains uncertain."

Encouraging AI adoption

Dr. Katy Peters, Law Lecturer and Programme Lead for LLM in Professional Legal Practice from the University of Surrey, says AI can help hone your practice.

"Think of AI as another tool which can complement your legal skills."

Kewley reveals they've made the decision to share AI tools with everyone at Clifford Chance, and actively encourage them to use it.

"If people aren't using AI, we're starting to follow up and ask them why, because we really want them to benefit from it."

Encouraging AI adoption needs to come from the top down, says Joe Cohen, the Director of Innovation at Charles Russell Speechlys.

"We have been encouraging all of our staff to use AI. Senior leadership have done a great job of speaking about their own, often daily, use of it."

Cohen told us nearly half of their 1,200+ staff are using AI monthly, and the technology has provided answers to tens of thousands of queries over the last couple of months.

"Firmwide training, regular communications and a comprehensive engagement plan to support awareness and adoption has helped us greatly."

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Pawel Lipski, a partner at Bird & Bird, says they're currently using AI as an additional research tool, basic text generator and to assist with reviewing documents. In the near-future, however, Lipski thinks they will need to redefine how they train junior lawyers.

"As generative AI tools become better in research and drafting, it may be very challenging for younger colleagues to get proper training. It will certainly not be the kind of training I had."

Now is the time to focus on helping people become more confident, he says.

"Employees should know this technology is there to help them, and should be confident about how they can and cannot use it."

Involving employees at an early stage is crucial to widespread adoption and understanding, according to Jodie Hill, the Managing Partner of employment law firm Thrive Law.

"We’ve asked our teams how they think AI fits in with, or helps with, their roles. We’ve got them involved at all different levels so it created engagement from an early stage."

Driving change

The survey also revealed 60% of the legal industry have made at least one internal change to implement generative AI, according to the lawyers we surveyed. This reflects the growth of this rapidly evolving technology.

The most common change was offering an AI-powered product to staff, which rose from 15% in January 2024 to 36% by September 2024.

There was also significant growth in developing policies on the use of generative AI (11% to 24%) and providing AI-related training for staff (11% to 18%).

2/3 of organisations in the legal sector have made a change to implement generative AI

As expected, large law firms are the most likely to have made a change to drive AI forward, at 78%.

"We have been early adopters for many of the next-generation solutions we use and have regular roadmap discussions with our key vendors" says Greg Baker, Global Head of Practice Innovation at Linklaters.

There has also been a stark rise in activity taking place inside corporate in-house legal teams, jumping from 47% earlier this year to 74%. This was also true with the bar, rising from 8% to 32% throughout the year.

Baker from Linklaters says his team are often approached by clients wanting advice on the most suitable AI solutions.

"In-house legal teams need help navigating the explosion of generative AI solutions on the market, seeing through the noise, and providing solutions that deliver real value."

While lawyers are currently using generative AI as a standard practice for everyday matters, Hodgson at Linklaters says the long-term impact AI will have is still to be fully-recognised.

"It is only at the point that generative AI is built into tools across the lawyer’s tech workbench that clients will notice a significant change in service delivery."

Generative AI will also make the management of firm data far more efficient, argues Hodgson.

"Firms are currently sitting on decades of untapped rich data that could provide clients with insights into managing disputes and complex challenges. The firms that utilise this data will gain a competitive edge by providing faster, more efficient services to clients."

Freshfields has a cross-functional team in place that seeks to match the firm's AI needs with the legal capabilities of new AI developments.

"We collect the requirements from our colleagues and clients and scan the market globally for AI products which meet business needs," says Gerrit Beckhaus, Partner and Co-head Freshfields Lab at Freshfields Bruckhaus Deringer.

"We also explore potential partnerships for our GenAI journey, and work with several large language models on defined use cases ourselves."

Kewley at Clifford Chance says that the firm also actively encourages its employees to share noteworthy use cases for AI.

"We've got a hub where people can submit their use cases and we're finding really great examples of diverse and innovative AI deployment."

This collaborative approach was true with most of the firms we spoke to, with training sessions, use-case or prompt engineering workshops, and open forums all now commonly practiced.

The use cases for AI in the practice of the law are already immeasurable. Keeping pace with this change will mean more time, resources and training.

When tasked with choosing the top three challenges facing their firm or legal team in the next 12 months, 41% said keeping pace with new technology – the second biggest challenge after legal talent.

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Keeping pace with technology is one of the top challenges facing lawyers in the next 12 months.

But AI adoption doesn't mean giving your employees access to anything and everything. May Winfield, Global Director of Commercial, Legal and Digital Risks, at engineering and construction firm, Buro Happold, says they have embraced generative AI in a sensible, risk managed way, relying on internal AI specialists to drive the change.

"We worked out how AI can best benefit our business and what tools would be most suitable for that purpose. Now we have comprehensive governance plans in place to help achieve that."

Patel from Eversheds Sutherland also highlighted that, while most clients understand the capabilities of generative AI, managing their expectations is crucial.

"GenAI is not a magic bullet and won’t solve all problems. It’s about using this technology to improve how you work and what you deliver today."

When generative AI first came on the scene, there were widespread concerns around the ethics, risks and responsibilities of it all. Almost two years later and we're now seeing lawyers, the most risk-averse of professional service providers, jump at the chance to use it.

What was it that won them over? We look at the biggest opportunities and the scariest risks.

The top benefit of using AI is delivering work faster, the ÀÏ˾»úÎçÒ¹¸£Àû survey found – a trend that is prompting many to question the suitability of existing pricing methods.

A staggering 71% of lawyers cited delivering work faster as a key benefit of AI, followed by an improved client service (54%) and a competitive advantage (53%).

71% of lawyers said delivering work faster is the top benefit of AI

Generative AI identifies key data points, patterns, and insights at a speed and scale unmatched by traditional research methods, says Beckhaus from Freshfields.

"Generative AI not only retrieves information but contextualises it, connecting disparate pieces of data and our knowledge pool."

This unlocks new data-driven services that deliver a greater value to clients, he highlights.

Winfield at Buro Happold thinks the time-saving abilities of AI are of huge benefit.

"AI enables my commercial and legal team to have more time in what is really of value – the analysis of issues and risks, deciding on solutions and mitigation, and commercially-minded support."

Kewley from Clifford Chance says generative AI simply makes the lives of lawyers easier.

"It makes those labour-intensive routine tasks such as research and due diligence much quicker, giving our team more time for the interesting work."

Chris Tart-Roberts, Head of Lawtech and Chief Knowledge & Innovation Officer from Macfarlanes agrees generative AI will bring about significant time-saving benefits in both the short and mid-term.

"As we learn more about the potential of generative AI, we expect it to translate into improved client service and more efficient service provision," Tart-Roberts noted.

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AI also allows lawyers to create rich, personalised and relevant insights and solutions for clients, says Bivek Sharma, Chief Technology Officer & Head of Alliances for Tax, Legal and People at PwC.

"For my team, generative AI tech is a game-changer that enhances our productivity, efficiency and quality of service delivery. It allows us to automate and streamline complex and repetitive tasks, focus on higher-value and creative work, and collaborate more effectively with our colleagues and clients."

Tom Whittaker, a Director and Solicitor Advocate in the dispute resolution team of Burges Salmon, says AI presents the opportunity to interrogate data in the same way we might ask a colleague a question.

"The ability to ask questions in natural language, rather than trying to guess what keywords may be of relevance, is greatly advantageous."

AI's efficiency and accuracy can significantly enhance your work quality, a partner at a law firm with 100+ fee-earners told us.

"Generative AI is streamlining my legal research and drafting processes, allowing for faster turnaround times and more comprehensive analysis. For those not using it, my advice is to start integrating AI into routine tasks."

The problem with pricing

The majority (71%) of in-house teams expect their external counsel to use generative AI, but this shift towards AI-driven efficiency is expected to bring changes to pricing structures.

Checklist for law firms: Price and service transparency

The survey also found 39% of private practice lawyers now expect to adjust their billing practices due to AI, up from only 18% in January 2024.

Firms expecting to adjust billing because of AI has doubled throughout 2024

However, only 17% of those in private practice think AI will end the billable hour model, while 40% believe it will remain in place and 42% are uncertain about its impact. 

Lawyers need to get ahead of AI otherwise they will find themselves too expensive and redundant, says a General Counsel and Company Secretary at a biotech firm.

"The billable hour rewards inefficiency. AI removes the excuse of hours spent, so private practice lawyers will have to change the way they measure their contribution."

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This change should be based on deliverables and value added, rather than just hours spent, she argues.

ÀÏ˾»úÎçÒ¹¸£Àû' Director of Strategic Markets, Mark Smith, says properly trained and grounded generative AI can ultimately underpin certain legal tasks being undertaken faster and at higher quality than that done by a human alone.

"The impact of this on price will depend on many different factors – the importance and number of those tasks in the overall workflow, the pricing mechanism at play, the commercial relationship between the client and law firm, and the overall level of competition in that segment of the market."

The focus will soon shift from hours worked to value delivered, says the law firm partner.

"AI will push the legal industry towards value-based billing models as routine tasks become automated, reducing the time needed to complete them."

One associate told us that AI will provide the legal sector with an unrivalled opportunity to demonstrate why their services are valuable.

"This will make the market more competitive, as firms will need to demonstrate what they offer that other firms don't, and what AI can't."

Read practice notes on: Gaining a competitive advantage through pricing strategies and methods

Reviewing your pricing and billing models is not something that should be done at the drop of a hat. However, this shift towards greater flexibility around pricing is part of a larger ongoing trend, as firms seek to offer a wider range of services to clients beyond pure legal advice and representation.

Generative AI tools can research, analyse and draft content in seconds, making adoption a no-brainer to those in the legal profession.

But, as most in the legal profession already know, when AI lacks the information it is looking for, the technology fabricate results (known as hallucinations).

The risks for lawyers relying on incorrect information are enormous. Just ask the US legal team who cited fake cases in court.

Fears of making a similar mistake have cemented themselves in the minds of many lawyers.

Despite increasing adoption rates, three-quarters (76%) of UK legal professionals are concerned about inaccurate or fabricated information from public-access generative AI platforms.

Relying on fabricated information (hallucinations) is the biggest concern to lawyers using AI

Beckhaus from Freshfields says the firm uses a host of technologies, processes, and controls to proactively mitigate and minimise AI risks, including automated tools to manage and monitor the AI model lifecycle.

"The most important element of our approach, however, is the ‘lawyer in the loop’ principle and human centered legal AI," he continues.

Can the use of generative AI lead to trade mark infringement?

AI can help speed up research and drafting, but the human lawyer is equally responsible for the output, says Peters from the University of Surrey.

"Whilst it may no longer be necessary to spend hours in a library or searching an online database, it will still be necessary to create appropriate prompts, review responses, adapt templates and challenge discrepancies."

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We asked respondents how confident they would be using a generative AI tool that was grounded on legal content sources, with hallucination-free, linked citations to the verifiable authority used to generate the response.

Three-quarters (72%) said they would feel more confident using a generative AI tool grounded in legal content sources with linked citations to verifiable authorities, up from 65% in January 2024. 

Three-quarters of lawyers feel more confident using AI grounded in legal content sources

Interestingly, as adoption rates and usage continues to climb, over-reliance is a growing concern. Over-reliance on AI is playing on the minds of half (50%) of lawyers.

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Unsurprisingly, leaking confidential information (49%) and accidental bias (43%) were also valid concerns.

Whittaker from Burges Salmon says confidentiality is a top concern given the risk that inputs and outputs could be accessed by third parties without permission.

"Any loss in confidentiality is also a loss in privilege." 

As a result, information security requirements, AI use policies, vendor due diligence, as well as other steps are essential to mitigating this, Whittaker says.

The expectation from in-house counsel that law firms inform them when they're using generative AI is high, at 77%. In contrast, the survey found only 59% of firms believe their clients would want to know.

Transparency is crucial, believes Patel from Eversheds Sutherland. "AI needs to provide clear indications of where responses are derived from, enabling experts to review and verify them."

Sharma at PwC says they offer clients transparency when and how generative AI is used.

"Maintaining the trust and confidence of our clients and the public is vital, by being transparent and accountable for the use and impact of generative AI within legal services."

PwC also seeks to engage with stakeholders, regulators and society at large to foster a dialogue and understanding of the benefits and limitations of generative AI, says Sharma.

Cohen from Charles Russell Speechlys says a handful of clients have expressed concerns about the safety of their data, but most are more concerned with making the most of the technology.

"The main concerns we hear from clients is ensuring the quality of work and accuracy is there, as well as genuine creativity at times." 

Tart-Roberts from Macfarlanes says training staff to use AI is also critical to minimising risk.

"Educating users about the types of tasks that are best suited to generative AI and how to write effective prompts goes a long way towards mitigating risk."

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