Artificial Intelligence and Automation in Legal Services: What UK Law Firms Need to Know
The legal profession has always been rooted in rigorous analysis, judgement and trust. Over the past few years, a new force has been quietly transforming how those qualities are delivered. Artificial intelligence (AI) and automation are no longer experimental novelties – they have become core components of modern legal practice. A recent Forum of Insurance Lawyers (FOIL) update noted that generative AI tools have moved from pilot projects into widespread use across private practice, in‑house legal teams and regulators[1]. By late 2025, 61 % of UK lawyers were using generative AI, up from 46 % just six months earlier[2]. The momentum is clear: AI is here to stay.
But there is an uncomfortable truth in this rapid adoption: usage and value are not the same thing. Many firms have begun playing with AI-driven tools, yet only 17 % have actually embedded them into their workflows[3]. The same report emphasises that limited investment and internal resistance – alongside a lack of formal strategies – are throttling genuine integration[4]. The Law Society bluntly observes that AI will not replace lawyers but will reshape how we work[5]. PwC’s 2024 Law Firms’ Survey quantifies this transformation: firms expect more than 10 % of chargeable hours to be automated through AI tools[6], yet only 2 % of firms have managed to monetise productivity gains[7]. The gap between experimentation and profitable implementation is widening.
How AI and automation actually work in legal services
AI is an umbrella term covering technologies that learn from data and perform tasks typically requiring human intelligence. Legal AI tools often combine natural‑language processing, machine learning and sometimes generative models to analyse, generate and summarise legal texts. Understanding the mechanisms behind these tools can help law firm leaders separate hype from reality.
Automating document‑intensive tasks
Legal work is heavily language‑based and repetitive, making it ripe for automation[8]. Machine‑learning models can be trained to recognise patterns in contracts, case law and statutes. For example:
- Document review and summarisation. The Thomson Reuters Future of Professionals report found that 77 % of legal professionals using AI employ it for document review and 74 % for summarising documents[9]. Large language models (LLMs) can extract key clauses, flag anomalies and summarise the salient points, saving lawyers hours of manual reading. FOIL’s update notes that tasks such as document analysis and contract drafting are being streamlined using AI[10].
- Contract analysis and drafting. AI systems can analyse a body of contracts to identify common clauses, risks and deviations. Generative AI can then suggest or assemble draft clauses based on a firm’s templates. PwC reports that law firms believe more than 10 % of their chargeable hours could be automated through AI tools[6], much of which lies in contract work.
- E‑discovery and due diligence. Machine‑learning classifiers can sift through thousands of documents to identify those relevant to a case or transaction. Predictive coding algorithms learn from an attorney’s tagging decisions, dramatically reducing the volume of documents requiring human review.
Enhancing research and insight
Generative AI is not limited to summarising; it can synthesise research. Thomson Reuters’ survey highlights that 74 % of respondents use AI for legal research[9]. By analysing patterns across case law and statutes, AI tools can suggest relevant precedents and predict judicial trends. FOIL notes that predictive analytics allows lawyers to analyse past decisions, assess risk and develop case strategy[11]. These systems free up lawyers to focus on interpretation and strategy rather than manual searching.
Client communication and legal assistants
AI chatbots and virtual legal assistants can handle routine client queries, triage incoming matters and schedule appointments. The Law Society’s business‑management guidance observes that AI‑powered assistants improve communication and service delivery, but cautions that they cannot replace human judgment and empathy[12]. Predictive analytics can also help firms forecast case outcomes and provide more transparent fee estimates, aligning with the growing client demand for fixed-fee billing models.
Time savings and well‑being
One of AI’s most touted benefits is time saving. The Future of Professionals report estimates that AI could free approximately 240 hours per year per legal professional[13]. This potential is echoed in the FOIL update, which notes that lawyers reinvest saved time into billable work or improved work‑life balance[14]. By automating routine tasks, firms can allocate more hours to high‑value advisory work, deepening client relationships and improving mental health.
From experimentation to strategy: why firms struggle
Despite clear benefits, genuine integration is lagging. FOIL’s report shows that only 10 % of firms had formal generative AI guidelines by the end of 2024[15], and just 17 % had embedded AI in their organisations[3]. The majority of lawyers are still experimenting rather than implementing. According to PwC, 84 % of firms are taking only preliminary steps toward AI adoption[16], and only 2 % have monetised productivity gains[7]. This hesitancy stems from several factors:
- Data and confidentiality concerns. The Law Society’s Generative AI – the essentials guidance warns that firms should never use personal or client confidential data when testing or training generative AI[17]. Without clear policies, lawyers risk breaching data protection laws and professional obligations.
- Ethical and reliability issues. FOIL points out that generative AI can hallucinate by creating convincing but incorrect content and even invent case law[18]. Errors can lead to professional misconduct or client harm. Transparency, bias mitigation and expert review are essential.[19]
- Pricing and profitability challenges. PwC notes that while AI increases productivity, it also raises client expectations. Firms are concerned that clients will demand lower fees, leading to price erosion[20]. Only 19 % of firms report seeing productivity gains and even fewer have converted those gains into revenue[7]. Smaller firms worry about being out‑competed by firms with larger technology budgets[21].
- Lack of strategic planning. The Law Society emphasises that informal experimentation can slip into shadow AI if there is no overarching strategy[22]. Firms need to identify the problems AI is meant to solve (research, contract review, knowledge flow) and start with contained tasks[23]. Thomson Reuters research underscores this: organisations with a defined AI strategy are almost twice as likely to see positive results compared with those without[24].
Practical takeaways: what UK law firms can do today
1. Develop an AI governance framework. Before deploying generative AI, create policies that address confidentiality, data protection and ethical use. The Law Society advises against using personal or client data in testing or templating[17]. Evaluate where data is processed, who can access it and how outputs will be reviewed[25]. Clear guidelines help avoid inadvertent breaches and build client trust.
2. Start with targeted, high‑impact use cases. Identify repetitive tasks that consume significant time, such as document review, contract drafting or legal research. Pilot AI tools on these contained tasks, measure time savings and quality, and refine the workflow. The Law Society recommends starting small and reviewing results before scaling up[23].
3. Invest in people and training. AI is a tool, not a substitute for judgment. Ensure your team understands both the capabilities and limitations of AI systems. Provide technical training on prompt engineering and ethical training on responsible AI use, as suggested in the Law Society’s lifecycle considerations[26]. Encourage collaboration between lawyers, IT and management to align AI adoption with firm strategy[27].
4. Prioritise transparency and client communication. Tell clients when and how AI tools are being used in their matters[28]. FOIL notes that many corporate clients now expect their panel firms to employ AI as a cost‑saving measure[29]. By communicating your policies and demonstrating quality control, you can convert AI adoption into a differentiator instead of a risk.
5. Build a robust data foundation. AI’s effectiveness hinges on clean, structured data. Review your document management systems and ensure data is well‑labelled and accessible. PwC’s survey emphasises that having the right technology infrastructure is key to unlocking AI benefits[30]. Consider integrations that reduce manual data entry and improve accuracy[31].
From experimentation to competitive advantage
Adopting AI and automation isn’t just about efficiency – it’s about positioning your firm for long‑term success. The transformation underway will reward those who act thoughtfully. Handled ethically and strategically, AI can free lawyers to focus on the uniquely human aspects of legal practice: judgement, client advocacy and problem solving[32]. Yet the technology can also expose firms to risk if implemented haphazardly. This duality creates a clear imperative: build your AI capabilities with purpose, governance and agility.
A note from rise10x
At rise10x, we believe that UK law firms deserve tools built specifically for their needs. Our work developing a legal OS for UK law firms is informed by the very challenges described above. We help firms design AI strategies, integrate automation into their processes, and ensure compliance with data protection and professional standards. By partnering with technology experts who understand the unique demands of legal practice, firms can bridge the gap between experimentation and real value.
One clear next step
If your firm is experimenting with AI or considering automation, now is the time to take stock. Book a consultation with rise10x’s specialists to discuss how AI can streamline your operations, enhance client service and strengthen your competitive position. A brief discovery session will help you identify immediate high‑impact opportunities and chart a path toward a smarter, more resilient practice.
[1] [2] [3] [4] [10] [11] [14] [15] [18] [29] AI-Integration-in-UK-Legal-Sector.pdf
https://www.foil.org.uk/wp-content/uploads/2025/10/AI-Integration-in-UK-Legal-Sector.pdf
[5] [19] [22] [23] [24] [32] AI and the law: the time to wait and see is over | The Law Society
[6] [7] [8] [16] [20] [21] [30] UK Legal Services Market Report - Summer 2025
https://www.strategyand.pwc.com/uk/en/reports/uk-legal-services-market-report-2025.pdf
[9] [13] See what legal professionals say about the role of AI and law
https://legal.thomsonreuters.com/blog/how-ai-is-transforming-the-legal-profession/
[12] [31] Five challenges for the legal sector in 2025 | The Law Society
[17] [25] [26] [27] [28] Generative AI – the essentials | The Law Society
https://www.lawsociety.org.uk/topics/ai-and-lawtech/generative-ai-the-essentials
