Many industries have seen substantial changes in their sector thanks to artificial intelligence (we’ve even touched upon this in previous articles regarding manufacturing). This revolutionary technology allows for automation of repetitive tasks, eliminating the need for manual work by employees. And whilst these developments may be embraced by some for freeing up employee time, for others, concerns about what it means for business models, job securities and the need for their services have begun to surface.
One particular sector that has seen, and will continue to see, such changes are law practices. As law firms implement AI-powered systems, there will be less need for staff to carry out tasks that can be performed by these automated systems, making it difficult for junior lawyers in particular to enter the profession. Whilst it will never replace a need for lawyers, the utilisation of AI systems in practices may actually result in fewer law firms in the UK by as early as 2030. Of course, for some more established and stable companies, this could be an advantage by taking out more of the competition for business; however, for those who are not prepared, this could spell the end of their law firm altogether.
Paul Knight, department head in Mills & Reeves law firm in Manchester, thinks that AI will make a substantial difference to the workings of law firms, particularly as automated software can be responsible for much of the laborious tasks typically assigned to junior lawyers and paralegals, such as contract comparisons or documentation reviews. In a statement to BusinessCloud, Knight stated:
“AI is going to take on the role that a lot of junior lawyers and paralegals currently perform at law firms. There won’t be the need for lawyers to review hundreds of documents or produce the first draft of a contract. The role should become more interesting, with the focus being on developing advisory skills [with new specialisms], not processing and managing documents.”
Whilst AI has been a concern for many aspiring lawyers, for established companies, automated technology has allowed them to expand their workloads by allowing for tasks and projects to be completed quicker than in traditional models as it limits the constraints of physical capabilities. But, according to Knight: “Unless there’s more work to go around, that’s going to potentially mean that work will only be going to the best and brightest law firms.”
Currently, the cost associated with AI and automated systems is one of the main reasons that it hasn’t been widely adopted in the industry, as well as ill-informed perceptions of automated technologies. Of course, when reviewing budgets, AI systems may seem like a luxury, but with the savings it could make in the long-run in staff wages and team resources, as well as allowing more work to be undertaken due to quicker turnarounds, automated systems seem like an investment worth pursuing. Certainly, if competition heats up as predicted, those who fail to review their business models may run the risk of going extinct.
We recently watched an interesting video by Legal Week regarding AI’s global impact on the law sector. In these clips, Legal Week writer and consultant, Dominic Carman, is joined by BT Legal COO Chris Fowler and Bird & Bird CEO David Kerr to talk about what AI means for law firms. They delve into how lawyers work more closely with clientele’s technology; the concept of “robot lawyers” and their involvement in firms, linking back to how AI will fundamentally change the business model of firms. Watch the full video here.
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Article by: Jason Adderley and Simon Atkinson