Research by Thomson Reuters has found that larger law firms in the UK are moving ahead of mid-tier firms in the utilisation of ‘game-changing’ AI technology.
75% of the Top 20 law firms* in the UK now actively promote their use of artificial intelligence (AI), according to research from Thomson Reuters, a global content and technology company.
However, less than half (45%) of the law firms ranked from 21 to 40 in the league table actively promote their use of AI to clients. The research suggests that the largest UK law firms are more advanced in their integration and promotion of AI within their services.
In addition, 79% of UK lawyers said that they expect that AI will have a transformative effect on the legal profession according to the Thomson Reuters 2024 Future of Professionals report, which found huge enthusiasm among UK lawyers for AI tools.
Key findings include:
- Third-party tools are more popular: 35% of the Top 20 UK law firms have developed their own AI tools for internal use, while 65% have adopted third-party AI-powered solutions.
20% of the Top 20 UK firms have made venture capital-style investments into AI companies or set up an AI-focused incubator.
- Firms appoint senior executives to spearhead AI: 35% of the Top 20 UK firms have appointed a head of AI to oversee internal adoption and usage of AI versus 20% of firms ranked 21-40 by turnover.
- Internal teams lead AI transformation: 60% of the Top 20 UK law firms now have a dedicated internal-facing team focusing on digital transformation through the use of AI and machine learning versus 30% of firms ranked 21-40 by turnover.
John Shatwell, Head of Legal Professionals, Europe, Thomson Reuters, said: “Our expectation is that law firms will market their leadership in AI use just as they market their expertise in an area of law or an industry sector. The legal industry has been incredibly quick to identify the potential of AI and is now optimistic about what it can deliver in terms of productivity improvements and client service. There is a growing consensus in law firms that AI is going to be essential to maintaining their competitive edge and to meeting client expectations.
“The largest law firms seem to be adopting AI at a rate that far outpaces the next tier. However, as more AI is introduced to existing legal research tools and other legal tech solutions that gap may diminish.
“One expected finding from our Future of Professionals report was the concern amongst a sizeable majority of lawyers, 29%, that their law firm is moving too slowly in terms of AI adoption. This raises the question as to whether there will be both internal and external pressure for law firms to develop their AI offering for clients.”
As well as helping to win new business, law firms are expecting that AI investments will deliver significant improvements in productivity. The Future of the Professionals research found that lawyers expect AI tools to save them up to 138 hours in their first year. UK lawyers expect that AI-powered technology will give them more time to focus on more complex tasks by increasingly automating administrative and mundane tasks.
*Measured by turnover as of June 10th 2024.
