The Future of Artificial Intelligence in the Legal Industry

With the advancement of generative AI solutions like ChatGPT, we have more insight than ever into how these groundbreaking technologies will influence the future of the legal industry.

AI gives legal professionals access to unprecedented new knowledge and capabilities—but in adopting these solutions, law firms may need to fundamentally rethink how they run their business.

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Hourly work is at risk

74% of hourly work could be automated by generative AI
AI adoption is rapidly increasing

79% of legal professionals are using AI in their practice
Clients are open to AI

70% of clients are agnostic or prefer to work with firms using AI

“AI won’t be able to take on all types of billable work in a law firm, but the work done by certain roles is more ‘automatable’ than others.”

74% of hourly work in the legal industry could be automated by AI

Generative AI solutions like ChatGPT offer substantial opportunities for increased efficiency and automation. For work that’s billed by the hour, however, automation would reduce the time spent on individual cases, leaving firms less to bill for. While good for clients, this poses a challenge for law firms.

Generative AI could put $27,000 of revenue at risk for every lawyer who bills by the hour

The work that’s most exposed to AI automation includes documenting and recording information, getting information, and analyzing data or information—all of which make up 66% of hourly work.

To offset work that is automatable, lawyers should focus their efforts more on services that lie higher up the value chain.

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“Many aspects of legal document preparation are repetitive and standardized, making them ripe for automation.”

AI adoption is accelerating rapidly in the legal industry

In 2023, 19% of law firms reported using AI. Now, 79% of legal professionals are using AI in their practice.

As AI adoption continues to accelerate in the legal industry, firm leaders may need to rethink key elements of their business, including their billing models.

Clients aren’t worried about AI

Far from it. 70% of clients are either agnostic or would prefer to work with firms that use AI. As AI becomes more commonplace, more clients are likely to expect that law firms have access to the ease and efficiency that AI provides.

Younger generations give insights into future trends

More than half of Americans are of Millennial age or younger—and according to IAALS, younger generations are more likely to experience legal problems.

As younger generations age, more clients overall will be open to—and could come to expect—the use of AI in law firms.

“Law firms can adapt to AI, ensuring competitiveness, efficiency, and client satisfaction.”

FAQs

What is AI automation in law?

AI automation can take many forms in a law firm. It could include the use of generative AI solutions like ChatGPT to review and draft legal documents. It could also involve the use of AI that’s embedded within different types of software to take on simple or complex tasks.

How do law firms use generative AI?

Generative AI solutions like ChatGPT can be used to review and analyze data, as well as draft documents and client communications. Generative AI solutions are trained on large language models (LLMs), which means they are especially good at analyzing and producing large amounts of information in very short amounts of time.

How can AI be used in a law firm?

AI has many uses in a law firm. Generative AI solutions like ChatGPT can be used to review and analyze data, as well as draft documents and client communications. Other, more legal-specific solutions, can summarize the legal aspects of a case and recommend legal strategies. AI solutions like Clio Duo can take on office-oriented administrative tasks, as well as help you to understand your business, highlight key insights in client work, and prioritize tasks.

Will AI automate law?

The work done by legal professionals can never be fully automated. Rules for professional conduct state that a lawyer must take responsibility for the work being done for clients. While AI can take on a lot of the work that a lawyer does for their clients, it’s important that a legal professional remains involved and takes on the accountability for the work.

How will generative AI change the legal industry?

Generative AI offers powerful capabilities that could transform how law firms operate within the legal industry. This includes how legal professionals focus on their work, as well as how firms offer their services to clients.

Will AI put lawyers out of work?

No, AI won’t put lawyers out of work, but lawyers using AI will replace those not using AI. AI offers legal professionals the ability to find new efficiencies in their day, which they can put towards new innovations, new ways to attract new clients, and new approaches to practicing law. Ultimately, lawyers have an accountability to their clients, which means that AI will never be able to take on the full responsibilities of a lawyer.

The Legal Trends Report provides information on the most important issues faced within the legal profession. By analyzing aggregated and anonymized data from tens of thousands of legal professionals in the US, supported by extensive survey research, the report offers unique insights into law firm efficiencies, hourly rates, and other key metrics for success.

Hourly work is at risk

AI adoption is rapidly increasing

Clients are open to AI