Will AI take law firms to the next level?

How AI and Tailored Loans Are Transforming Law Firms –  In America, the legal system is leaning into revolutionary AI technology that will no doubt send ripples across the pond.

Research completed for the 2024 FT North America Report reveals that several law firm leaders are exploring what disruption looks like in the legal sector. Ira Coleman at McDermott Will & Emery is just one leader investing in generative AI, also bolstering the efforts of the firm’s innovation team, who recently developed an avatar capable of responding to ‘tricky questions.’

The aim of the game? Harnessing the power of AI to better understand and satisfy the needs of clients. Elsewhere, DLA Piper has also made significant investments in AI, with a view to introducing a ‘proactive’ trend. This proactive approach carries over both in the services they provide clients by advising them not just on precedent but predictions and to compliance, where firms can “use clients’ data, human lawyers and AI to spot trends and patterns that can alert the client to a potential breach of their policies or of industry regulations.”

While AI has unquestionably landed here in the UK legal sector, research published by the  Thomson Reuters 2024 Future of Professionals report reveals that 29% of lawyers believe their firm is moving too slowly in the process of AI adoption. This is despite findings that lawyers expect AI tools to save them up to 138 hours in their first year, freeing up their time for priority tasks by automating the administrative and mundane.

What are the barriers for UK law firms?

According to insights published by legal research platform Lexis Nexis, the biggest hurdles to the adoption of generative AI are content hallucinations (57%), security concerns (55%), and the technology not being trustworthy enough (55%).

In an industry where accuracy and confidentiality are paramount, this is no surprise. Mark Smith, Director of Strategic Markets at LexisNexis, suggests that the accuracy of information is the biggest concern when it comes to the adoption of generative AI.

“There’s a huge fear of providing the wrong advice to clients, which is particularly heightened by issues with free-to-use generative AI.”

However, this is regarding free-to-use AI tools, and not bespoke or ‘closed’ services subject to a subscription fee and rooted in legal source materials. Samuel Pitchford, a solicitor for Pembrokeshire County Council in Wales, is just one example of an industry professional excited to use generative AI for legal research purposes in the near future.

“We avoid using generative AI for research purposes at present to avoid hallucinations,” says Pitchford. “But the development of ‘closed’ generative AI tools, trained exclusively on legal source material and available only to subscribers should be less prone to hallucinations and would allow our team to use generative AI for research.”

The near future, according to Lexis Nexis, is already here, with the platform releasing a ‘fast and accurate generative legal AI that uniquely combines Legal Research and Practical Guidance from LexisNexis’ – Lexis+ AI. Legal firms can demo this revolutionary service, but ongoing access requires an undisclosed subscription.

Invest in AI with finance for the legal industry

The speed and efficiency gained by investing in closed generative AI tools is just one example of how a boost in funds can revolutionise the way your firm works. Other areas where a cash injection could work wonders are in staffing, acquisitions and partner buy-outs.

White Oak UK has worked with countless legal firms throughout the UK to bring fast, tailor-made financial support that keeps you ahead of the game. Our menu of financing options is designed to help with business development loans, debtors loans, professional indemnity insurance and the cost of IT and subscriptions.

Find out how our finance options can benefit your practice by calling us on 01244 527300, emailing admin@whiteoakuk.com or visiting our online chat to speak to a member of our team.

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