AI to transform UK law firms with 96% adoption rate

Research conducted by Clio has revealed widespread adoption of artificial intelligence (AI) across UK law firms, with 96% of firms integrating AI into their operations.

According to Clio's latest Legal Trends Report, law firms in the United Kingdom are increasingly incorporating AI to streamline processes, with 62% of lawyers expecting AI utilisation to grow within the next year. This trend is part of a broader realignment within the legal sector, as firms adapt to technological advancements.

The report highlights key areas where AI is being implemented: 36% of firms use it for document drafting or automation, 29% for contract review, and others for tools like E-discovery solutions and legal research. AI adoption is leading to improved productivity and work quality for 43% of solicitors, alongside benefits in business growth as reported by 41% of firms. Additionally, AI has been linked to improved mental well-being for 20% of legal professionals.

Law firms are also prioritising technological investments, with 34% planning to spend over GBP £100,000 on technology next year, the reprt found. Simultaneously, 36% expect to make comparable investments in marketing to better align with client engagement strategies. Sarah Murphy, General Manager of Clio in EMEA, comments, "AI and strategic tech investments aren't just trends-they're reshaping UK legal practice. We're dedicated to equipping law firms with the tools and insights to stay ahead and drive real innovation."

Among client-focused developments, the report indicates a shift towards fixed-fee billing, anticipated to gain traction over the next year. Driven by client demand for cost predictability, 54% of firms foresee increased adoption of fixed-fee structures, moving away from the traditional hourly billing model. Jack Newton, CEO and Founder of Clio, notes, "AI might finally be the death knell for the billable hour. Fixed fee billing, which many law firms are already embracing, may become even more common as AI further automates workflows."

The research further outlines an evolution in client communication methods, as 45% of clients continue to prefer phone communication, while alternative digital channels like firm websites, chatbots, and mobile apps gain popularity. The adaptation to these changes in communication preferences is crucial for maintaining client relationships and ensuring long-term engagement.

Clio's report draws on responses from solicitors across varying law firm sizes, providing a UK-specific perspective on how legal practices are navigating current trends. This research offers significant insights for firms aiming to harness technology and client-oriented strategies for sustainable growth in a competitive market.