The chair of the Legal Services Board (LSB), Monisha Shah, has warned regulators to “identify emerging risks before they become system challenges” and protect consumers while supporting innovation.
In her opening remarks at the International Conference of Legal Regulators, Shah praised the “opportunities” presented by new technology such as Artificial Intelligence (AI), but emphasised the need to maintain “appropriate safeguards” for consumers.
“Technology is transforming not only how legal services are delivered, but also how consumers find, compare and access legal support. Digital platforms are expanding access to information, new tools are increasing efficiency, and technological innovation is creating opportunities to provide services in different ways and at different price points,” she said.
“AI has the potential to improve productivity, reduce costs and expand access to legal services. At the same time, it raises important questions about quality, accountability, transparency and consumer protection.
“Regulators around the world are grappling with similar questions: how do we support innovation and realise the benefits of new technologies while maintaining public confidence and appropriate safeguards?”
Shah emphasised the importance of a “forward-looking mindset” for regulators, rather than simply reacting to “crises, failures or significant public concerns.”
She said: “Looking ahead is particularly important because regulatory systems cannot afford to be purely reactive. Historically, many regulatory reforms have followed crises, failures or significant public concerns.
“There will always be a need for regulators to respond decisively when problems arise. But increasingly, success depends on the ability to identify emerging risks and opportunities before they become systemic challenges.”
Shah, who took up the post of chair of the LSB earlier this year, is also chair of Publishers’ Licensing Services and co-chair of the Copyright Licensing Agency. She chairs the Kings Counsel Selection Panel and serves as a council member of the Advertising Standards Authority.
Her speech described the legal sector as “not simply another professional market” because it “helps uphold the rule of law, enables individuals and businesses to enforce their rights, supports economic activity and investment, and provides an essential foundation for the functioning of society”.
She added: “That makes the work of legal regulators especially important. Our task is not simply to oversee compliance with existing rules. It is to ensure that regulatory systems remain effective, proportionate and responsive to changing circumstances.”
In July, an independent review of the LSB, commissioned in the wake of regulatory failures, including Axiom Ince and SSB Law, concluded the organisation has “lost its way in recent years” and has “fallen short” of government and parliamentary expectations.
