A majority of UK lawyers have adopted generative AI or have plans in motion, almost four-times the number seen in Summer 2023.
Lawyers say delivering work faster is the biggest benefit of AI, yet it is prompting many to rethink the suitability of their pricing structure, according to a new report by LexisNexis.
The survey of over 800 UK legal professionals at firms and in-house teams found 41 per cent are currently using AI for work, up from 11 per cent in July 2023. Lawyers with plans to use AI for legal work in the near future also jumped from 28 per cent to 41 per cent, while those with no plans to adopt AI dropped from 61 per cent to 15 per cent.
The report highlights that the main reason for AI adoption is the ability to deliver work more quickly. An impressive 71 per cent of lawyers cited faster delivery as a key benefit of AI, followed by improved client service (54 per cent) and gaining a competitive advantage (53 per cent). When asked to select the single greatest benefit, 52 per cent identified delivering work faster as the primary advantage.
This shift towards AI-driven efficiency is expected to bring changes to pricing structures. The survey found that 39 per cent of private practice lawyers now expect to adjust their billing practices due to AI, up from 18 per cent in January 2024. However, only 17 per cent of those in private practice think that AI will end the billable hour model, while 40% believe it will remain and 42% are uncertain about its impact.
The survey also revealed 60 per cent of firms or legal departments had made internal changes reflecting the growth of AI adoption. The most common change was offering an AI-powered product to staff, which rose from 15 per cent in January 2024 to 36 per cent by September 2024.
There was also significant growth in developing policies on the use of generative AI (11% to 24%) and providing AI-related training for staff. As expected, large law firms and corporate in-house legal teams were the most likely to have made changes, at 78 per cent and 74 per cent respectively.
Despite adoption rates, 76 per cent of UK legal professionals are concerned about inaccurate or fabricated information from public-access generative AI platforms. However, 72 per cent said they would feel more confident using a generative AI tool grounded in legal content sources with linked citations to verifiable authorities, up from 65 per cent in January 2024.
Stuart Greenhill, Senior Director of Segments at LexisNexis UK, commented: “The possibility of delivering work faster has seen widespread adoption, internal integration, and regular use of generative AI across the legal sector. There’s also a strong demand for AI tools that are grounded on reliable legal sources.
Yet the impact of this efficiency on the billable hour is becoming a topic of debate. As a result, the number of firms reconsidering pricing models has doubled throughout the course of 2024.”
