BigLaw’s Race Towards AI Innovation
Artificial Intelligence (AI) has long surpassed its reputation as a buzzword, evolving from a futuristic, shiny piece of technology to a strategic imperative. While the conversation surrounding AI’s intersection with law mainly focuses on regulation and how legal systems seek to manage AI innovation, a new battle is starting to emerge. As competition intensifies, top law firms are starting to realise AI’s ability to streamline operations, reduce costs, and elevate client service [1]. No longer bound by traditional methods, Big Law firms find themselves in a race to integrate AI and maintain their competitive edge. But what’s fueling this drive for AI, and how is it reshaping legal practice?
Why AI is Transforming the Legal Sector
The legal industry has long been known for its cautious approach to change, especially when it comes to technology [2]. Yet, as clients grow accustomed to the efficiencies of digital services in other sectors, they increasingly expect similar responsiveness and speed from their legal advisors. For many firms, adopting AI isn’t just a modernisation effort—it’s a necessity to stay relevant and get ahead in a client-driven marketplace [3].
AI offers powerful solutions to tasks once handled by junior associates and paralegals. Activities like legal research, document review, due diligence, and contract analysis are now completed faster and, in some cases, with greater accuracy through AI tools. This shift enables attorneys to focus on higher-level strategic tasks, creating added value for clients while reducing the need for traditional billable hours [4].
The Current Landscape
Some of the world’s largest firms are already leading the charge in AI adoption. A&O Shearman, for instance, launched an AI tool known as Harvey, developed in collaboration with OpenAI, to enhance legal research, contract review, and more. According to the firm, Harvey allows their lawyers to complete certain tasks up to 50% faster [5], delivering notable improvements in both efficiency and client service.
Similarly, Clifford Chance has partnered with Kira Systems, an AI-powered platform that enables automated contract analysis. Through Kira, Clifford Chance has streamlined its due diligence process, allowing the firm to review thousands of documents rapidly, a critical capability during large-scale transactions [6].
Challenges in AI-enhanced legal practice
The rapid push toward AI also presents challenges. Law firms must address ethical and legal considerations tied to AI, particularly regarding data security. Compliance with regulations like the GDPR (General Data Protection Regulation) in the EU and the CCPA (California Consumer Privacy Act) in the U.S. is essential when using AI tools that handle sensitive client information [7].
Another concern is the impact of AI on entry-level roles traditionally filled by junior associates. As more tasks become automated, there’s a growing worry that fewer junior-level positions may be available. Law firms are carefully considering how to balance their AI integration strategies with maintaining career pathways for emerging legal talent [8].
What the Future Holds for AI in Law
The future of AI in law promises even more innovative applications. Predictive analytics, which leverages AI to forecast case outcomes based on past data, could become a staple in litigation strategy [9]. Smart contracts, programmed to execute themselves based on pre-defined terms, are also on the horizon, potentially revolutionising transactional work [10]. AI’s capability to assist in drafting complex legal documents is another area of rapid advancement.
Law firms that embrace AI now are setting the benchmark for innovation within the industry. Those who hesitate may risk being left behind as clients increasingly prioritise efficiency and digital fluency. The goal for successful firms will be to combine AI technology with the judgment and expertise of human solicitors, creating a hybrid approach that leverages the strengths of both.
[2] The Times, Why it’s time for law firms to start investing in generative AI, 1 May 2024.
[3] Financial Times, Law firms probe best ways to win a head start on using AI, 17 May 2024.
[4] Harvey.AI
[5] Ibid.
[6] Kira Systems
[8] American Lawyer, AI Will Ramp Up Intense Big Law Battle for Talent, Client Share, 30 April 2024.
[10] Ibid.
