The legal sector, often labeled as risk-averse, has shown remarkable adaptability with the advent of generative AI. Law firms and in-house legal teams are actively embracing AI, with some firms like Ashurst reporting that 60% of their workforce use AI daily. This swift adoption contrasts with a previous "wait-and-see" approach and marks a significant shift in mindset among legal leaders.
This rapid technological change is prompting a re-evaluation of traditional business models. As AI commoditizes elements of legal practice, firms are exploring new pricing models beyond the historical hourly billing. There's a growing willingness to experiment with hybrid models where scale and recurring revenue might supersede the influence of individual star partners. Singapore's Rajah & Tann, for example, has launched a subscription-based AI-powered contract review service, offering clients access to its internal systems and an off-ramp to lawyers for complex issues, potentially shifting client engagement towards more nuanced advisory services.
Firms are also grappling with whether to "build or buy" AI solutions. While some, particularly in the tech sector like HPE, are developing proprietary AI tools for enhanced data control, cost savings, and faster problem-solving, many corporate legal departments with limited IT resources find building bespoke tools challenging. However, the use of "low code" and "no code" platforms offers a more accessible path for in-house teams to develop their own AI tools. Meanwhile, legal tech stalwarts like Thomson Reuters and LexisNexis are integrating new AI tools from companies like Anthropic, showcasing an evolving competitive landscape.
The types of professionals entering law firms are changing as well, with an increasing reliance on data and tech specialists to complement legal expertise. The term "non-lawyer" is falling out of favor as business service professionals take on client-facing roles, and in-house legal operations professionals become central to legal teams. This multi-faceted approach, combining technology, process, and people, is becoming crucial for firms like Ashurst, which are now putting AI at the core of their service delivery. This adaptation reflects more significant technological advancements in the last two years than in the previous two decades.
