AI Revolutionizes Law: Efficiency Soars

The legal sector is experiencing a significant technological shift, with AI and other innovations becoming a primary focus for law firm leaders and in-house counsel. Companies like Ashurst are at the forefront, having established an alternative legal services business in 2013 to enhance efficiency.

Ashurst's digital delivery arm, Ashurst Advance, now employs lawyers, technologists, and paralegals globally to utilize AI technologies from providers such as Harvey, Microsoft, and Relativity. This integration aims to optimize workflow for lawyers and clients, exemplified by a recent regulatory review in Australia where AI processed approximately 100,000 documents in 48 hours.

The market is seeing a surge of AI software suppliers targeting the legal sector, including major newcomers like Harvey and Legora, alongside established players like LexisNexis and Thomson Reuters. OpenAI and Anthropic are also developing tools to automate routine legal tasks, while open-source platforms are expanding choices for custom IT systems.

However, this rapid technological advancement brings challenges. Concerns about reliance on third-party technology, data confidentiality, and convincing legal staff to adopt new tools persist. Mallsons and MinterEllison are implementing tiered AI training programs, though calculating a definitive return on investment remains complex for many firms.

Despite significant investment in legal tech, a gap exists between AI access and trust, with only 22% of lawyers expressing high confidence in AI outputs, according to recent data. As corporate legal departments anticipate doubling their tech spending by 2028, firms will face pressure to demonstrate tangible gains from these AI adoptions, potentially reshaping client-firm relationships as similar technologies become available to both.