Legal tech this, AI law firm that: But what about jobs and trust?
AI is the talk of the town, and with businesses jumping on the bandwagon for fear of being left behind, the legal sector is no different. However, the scepticism wafting around is there for a reason.
Until now, law firms and professional services were relatively slow on AI adoption, however, “significant change often stems from a necessity to stay competitive,” explained Greg Nieuwenhuys, senior partner at Generative AI Strategy.
At City AM, we have been inundated with every tiny bit of news on this topic; alerts have been lighting up about law firm deals with tech companies and new AI policies.
Clients now even have their first official AI law firm, if they’re so minded.
The legal regulator approved Garfield AI last week, an AI-only legal firm founded by a City lawyer and a quantum physicist. The startup firm specialises in English small-claims debt recovery for as little as the cost of a cup of coffee.
This move has opened the door for more AI law firms to set up shop, as confirmed by the Solicitors Regulation Authority’s chief executive, Paul Philip.
Firms have been pushing the drive of hi-tech adoption, so much so that some are throwing money at incentivising staff. Last month, Shoosmiths became the first major firm to link a firm-wide bonus to staff use of AI.
As Emma Cocker, senior associate at Lawrence Stephens stated, “AI undoubtedly plays a huge role in the future of legal services”.
However, there is a reason why firms feel the need to incentivise staff, as this new tech faces a lot of scepticism.
Wary about jobs
For the private sector, the increased embedding of new tech tools in businesses is raising an eyebrow among some employees, many who feel this tech may make their jobs redundant.
Within the legal sector, the focus of this scepticism is around junior lawyers.
Danielle Crawford, counsel at Forsters, noted “the number of junior lawyer positions may reduce as a result of efficient AI utilisation”. While Cocker added that “AI could deskill junior lawyers who may not be practicing legal researching and drafting to the same degree as previous generations of lawyers”.
“AI will transform the job landscape. Some roles will change or disappear, but the majority will remain,” stated Nieuwenhuys. But he pointed out the key is that those who embrace the new tech will outpace those who do not.
Regardless, this change is happening and as law firms, like all businesses, race to keep competitive, AI adoption is important.
However, the speed around this adoption could in itself lead to more work for lawyers.
Ben Lee, partner at Andersen explained, “The race to adopt AI has outpaced the establishment of robust ethical guardrails, especially in the UK where regulation remains fragmented and reactive.”
So lawyers, especially juniors, will need to make sure they are equipped with AI knowledge – if only to keep their CVs valuable.
Public trust
Despite that, the scepticism surrounding the push on AI is not just among lawyers fearing for their jobs but also among clients who don’t trust the new tech.
A recent survey by Robin AI revealed that the vast majority of those polled preferred a traditional lawyer (69 per cent) for legal advice, which drops to 27 per cent for lawyers using AI as a support tool. Just four per cent said they would trust AI on its own.
On the other side of the coin, City AM hears of clients questioning the need to pay traditional rates for tasks they assume are (or could be) completed by AI.
When the news of Garfield AI’s approval broke, the CEO of the Law Society, Ian Jeffery, said that while this was a significant milestone, “maintaining public confidence in justice and the legal system is of the utmost importance.”
However, the legal regulator also clearly outlined that lawyers relying on the hi-tech output will be ultimately responsible for the consequences. Cocker explained, “Those who do use AI improperly may find themselves facing disciplinary proceedings by their employer and the regulator, and in cases of ‘AI gone wrong’ there is scope for negligence claims by clients, as well as costs applications by opponents.”
This means that not only will lawyers be busy with work from clients trying to embed their own tech, but law firms will need to be careful how they use their own AI to avoid any legal, professional, or reputational risks to their own business.
Eyes on the Law is a weekly column by Maria Ward-Brennan focused on the legal sector.