Leveraging AI & automation for efficiency and client experience in law firms

Over the past couple of weeks, it was a pleasure to be a part of the ALPMA Next Level Sessions as a panellist with other industry experts. These sessions, designed for law firm management professionals, were centred around compliance, technology, and industry updates. 

I have outlined here some of the key learnings shared. 

Where are most organisations on their AI journey? 

The picture of where AI will ultimately fit within the legal industry is still emerging. Many law firms and corporate legal teams are experimenting with AI solutions or starting their journey into AI. The commonly-held view is that AI needs to be embraced and embedded into the practice and business of law; however, how that is playing out varies and is highly dependent on the risk appetite and culture within the firm. Progress and innovation with AI are not relegated to the top end of town, but evident in smaller practices as well, where their agility and clear use cases have allowed them to implement AI successfully.  

The effectiveness and value proposition of AI within the law are ubiquitous and not necessarily linked to a particular practice group or experience level. The use cases are widespread, with success found in both the practice and business of law. 

However, what is resoundingly clear is that AI is not going anywhere. Legal professionals must embrace AI — put simply, this is a moment where everyone must innovate or perish. 

How is Return on Investment (ROI) being measured at firms? 

We are too early into our AI journeys for the ROI to be quantified and measured. This is because the metrics for how ROI is to be calculated are still being formulated. There are many metrics by which one could measure AI success: 

• The ability to respond to a client quickly and in real time, an immeasurable benefit to the client in terms of solving their business or commercial needs.  
• Elevating the role of the lawyer in providing legal services by limiting time-consuming administrative tasks.  
• Allowing a lawyer to anticipate and predict their clients' needs before the client comes to them with a problem to be solved.  

The augmented role of the lawyer-client relationship will elevate the value lawyers provide to their clients with a pivot from reactionary to pre-emptive legal advice, and the lawyer acting as a strategic and business legal counsel, rather than a problem-solver in a reactionary capacity. This level of expertise has never been possible before within the profession, as the daily grind and workload have impeded the ability for lawyers to exercise the strategic and complex reasoning muscles in which the clients see real value. 

The speed of advice will also improve with the assistance of AI. Clients will be able to receive real-time advice to meet their business needs, which will be transformative and offer a huge return on investment to the clients and lawyers. The ability to advise clients in real time will shift the dial in clients’ expectations and their relationships with their lawyers.  

Sentiment is another metric and a time-saving gain from AI. One of the panellists incorporated AI into their platform for managing the sentiment and tone of the clients, with a warning for when a client showed signs of distress or anger. These types of intuitive and embedded AI improve customer satisfaction and relationships, while firmly keeping humans in the loop. 

Challenges or roadblocks in the adoption and implementation of AI 

The pervasive barrier for lawyers regarding AI use and adoption is client confidentiality. The need to protect, preserve, and maintain client confidentiality & privilege is integral to the practice of law and the ethical and regulatory obligations that underpin it. It is this fear that their client’s confidential information will be disrupted or interfered with that is the main deterrent for lawyers embracing AI.  

While this is a valid consideration, it is imperative that lawyers seek vendors that also share the same concerns and have built-in security and governance within their platforms. For example, Ask iManage brings AI capabilities to your documents, while respecting, preserving, and maintaining the security and governance within the document management system. Information barriers will be protected and maintained, and there is no risk to confidentiality or privilege if a lawyer uses Ask iManage on a top-secret or highly classified document. 

The other challenge is cultural. Some law firm leaders are resistant to change and unsure how best to implement AI within their organisations. This lack of action or wilful blindness to the transformational change surrounding them is a risky approach. Without clear guidance or policies internally, or indeed, the correct tools, employees within an organisation are at risk of using AI incorrectly or unethically. It is foolish to believe that ignoring AI will prevent it from being used; law firm leaders need to be cognizant of the fact that employees are likely already incorporating AI into their workflows. Therefore, it is incumbent on law firm leaders to ensure that they are providing guidance on the safe, effective, and ethical use of AI.

Training the next generation of lawyers 

How do we ensure the younger generation is trained in this new AI world and acquires the necessary skills to embark on their legal careers? The new generation of lawyers will require new skills, including discernment, evaluation, and prompt engineering. It will be essential to ensure that these skills are developed and honed if we want to see the next generation succeed.  

AI will also open new career pathways to younger lawyers. There will be the traditional practice of law option, but also a more technologically focused and AI-driven approach, which would appeal to lawyers with an engineering or mathematics background.

AI is here to stay 

Although AI readiness varies across the industry, the key takeaways from the Next Level Sessions make it clear that law firms must take AI seriously. Their success, and the future of the legal profession, depends on it.