In the news
AI and billable hour can’t co-exist, says tech founder
The founder and chief executive of lawtech company Clio has said that using generative AI (genAI) to speed up the delivery of legal work is incompatible with the billable hour. ‘You can’t have the benefits and time savings that AI is delivering co-exist with the billable hour model,’ commented Jack Newton. He added that the traditional billing model has been: ‘out of date and at risk for decades… Something that used to take you five hours will now take five minutes, and you need to justify those four hours and 55 minutes you have given up because it is no longer reflective of the value lawyers are giving to clients.’
Newton also reflected that the improved efficiencies brought about by genAI were an opportunity for firms to meet unmet legal need. ‘It’s exciting that AI can address these challenges – it will be a tectonic shift in the industry driving down costs and making legal services more accessible.’
Safeguards are in place for new innovative business models, says regulator
The first AI-driven law firm, Garfield AI, is subject to the same regulatory standards, such as needing to have professional indemnity insurance and a compliance officer for legal practice in place, like any other firm. The Solicitors Regulation Authority (SRA) discussed the evolving legal and regulatory environment in light of AI at its Innovate event panel alongside Garfield AI co-founder Daniel Long. Speakers on the panel also discussed how to go about developing and procuring technology and the relationship between you and your tech vendor.
Further details on the two SRA Innovate events held this year can be found on the SRA's website
AI adoption is rising fast, but lawyers are held back by slow-moving cultures
Two-thirds (61%) of legal professionals are now using genAI for work purposes, a survey by Lexis Nexis has found. Adoption has not only increased among those who had planned to use AI, but also among those initially hesitant. Despite the survey showing there has been a rise in those using genAI, only 17% of respondents said it was fully embedded in their culture and 39% described their organisation’s AI culture as: ‘We are experimenting but progress is slow.’ Sarah Barnard, Director of AI Delivery at Linklaters, commented that many of the tools are still evolving and return-on-investment remains elusive: ‘Some firms are waiting for clearer evidence of value before making major AI investments.’
Read the full report from Lexis Nexis: ‘The AI culture clash’
Law Commission: possibility of creating a separate legal personality for AI
While the option of granting AI systems a legal personality may seem ‘radical’, the Law Commission has said: ‘it may become an increasingly salient option’ as AI systems advance. It made the comments in its ‘AI and the Law’ discussion paper and said some of the issues to think about were the reasons for and against granting a legal personality and what type of legal personality should be granted. Reasons for granting a legal personality included encouraging AI systems themselves to develop safely. The reasons against included concerns it may lead to AI systems being used as ‘liability shields’, protecting developers from reasonable accountability.
Ministry of Justice unveils ambitious proposals in AI action plan
Embedding AI across the justice system is one of the key priorities set out by the Ministry of Justice (MoJ) in its three-year AI action plan. It is looking to scale AI productivity tools across the system to support with routine and manual tasks, freeing up the time of more than 90,000 staff to focus on ‘higher-value work’. Another area where the MoJ is exploring the benefits of AI include access to justice. It is currently developing a chatbot that supports users in resolving child arrangement disputes. The chatbot is being trained on gov.uk content.
Read the Ministry of Justice’s AI action plan for justice paper
AI strategies lead to revenue growth – don’t get left behind, warns new report
A ‘widening competitive edge’ is emerging between those firms using AI and those that are not, according to Thomson Reuters’ Future of Professionals report for 2025. It found firms that reinvent and automate entire business processes using AI will prevail with superior customer experiences and lower costs compared to those organisations which move slowly. Concerning the legal sector, the report commented: ‘the legal professionals we surveyed expect to free up nearly 240 hours per year, up from 200 in 2024. This unlocks an average annual value of $19,000 per professional.’
Read the Thomson Reuters report on the Future of Professionals