In a Thomson Reuters report on the use of ChatGPT in law firms, Charlotte WoolvenBrown's statement is recorded. It was March 2023 and the head of employment and partners at UK law firm Sternberg Reed emphasized: "Within six months, everyone in the firm will be using it [ChatGPT]. And there's no way to stop it because people will understand better and better what's going on and how quickly this technology is developing."
The quote is revealing, especially when you consider that it comes from the head of HR at a well-known London law firm. And it offers two interesting insights. It shows the legal sector's view of the impact of AI, but it also indicates the speed at which law firms will adopt artificial intelligence tools.
Like any technological innovation, AI brings opportunities and challenges. However, all indications are that it will increase efficiency and reduce lawyers' working hours. However, the impact on law firms will vary depending on their size. Independent lawyers will be more flexible when it comes to using generative AI tools. Large law firms will be more difficult to maneuver, but they will need solid strategies to integrate artificial intelligence into their daily work.
Independent lawyers and small law firms facing AI
The change that AI will bring to the legal practice of independent lawyers can be significant. Remember that the limiting factor for an independent lawyer is time. There are only so many hours in a day, so any time saved is welcome. And this is where AI can help.
Searching for important data in legal documents and other information as well as reviewing a contract or drafting texts are tasks that can be streamlined with AI. In this way, professionals can reduce the time they spend on certain work and focus their energy on the areas where they add the most value with their expertise and skills, such as drafting a legal strategy for a case.
In small law firms, the use of AI can also be implemented quickly. The need to save time is an incentive for these types of law firms. They can make decisions and draw up a plan for the use of AI within a few days.
Both independent lawyers and small law firms would have more freedom to meet with their clients. They would be able to better respond to their needs but also have more time to meet with individuals or companies who want to use their services. However, one of the biggest benefits, according to Thomson Reuters, will be the ability to offer lower rates and be more competitive in the market.
Small businesses, however, have more opportunities to utilize the technology. They can split their team and assign one or more people to explore the possibilities of artificial intelligence for their daily tasks.
The impact of AI on large law firms
For large law firms with hundreds or thousands of employees, the picture is different. For them, using AI often means analyzing efficiency and risks beforehand and establishing a usage protocol. Some will probably prefer to work with a proprietary tool, a circumstance that delays the introduction of the technology.
Large companies will take longer to apply AI to their daily tasks, although a more organized approach will limit their risk. It is worth remembering that one person should monitor the results of artificial intelligence.
However, the price of the services will have the biggest impact. In this case, the automation of tasks that AI will bring may push prices down. In this case, clients will put pressure on their law firms to lower prices.
Another consequence of the use of AI in the legal world is that large companies, usually clients of large law firms, will be able to handle certain matters in-house. Artificial intelligence will help with some heavy and time-consuming tasks that require a lot of time and very specific knowledge.
Thomson Reuters points out that this will only affect law firms that typically work with large corporations, which usually have their legal teams. These will start to work with artificial intelligence, so they will experience the value of the technology first-hand.
Conclusion
The automation of tasks that artificial intelligence will bring to the practice of law will make independent lawyers and small law firms more competitive. These types of players will be able to adapt more easily and quickly to innovations such as AI.
Larger law firms, which are slower to move, will take longer to adopt AI, but they will do so with lower risks. However, some of their clients, such as large corporations, may push for lower fees.
