Legal AI: Should Your Law Firm Invest?

Should your firm invest in Legal AI?

The answer, according to industry experts, is a resounding yes – but with a caveat. Instead of relying solely on off-the-shelf, generic solutions, law firms should consider building their own AI-powered software.

This is backed up by a Big Four global leader in legal AI – who believes firms should build their own software to develop their competitive advantage. A powerful combination of a robust AI platform and microservices enables firms to “build their own” tailored solutions. 

Let’s explore this in more detail.

Why is AI good for law firms?

Firstly, let’s look at why AI is such an important addition to a law firm’s toolkit. 

We all know that legal clients are now increasingly seeking law firms that can keep pace with their evolving needs. The ability to provide swift, accurate, and data-driven services has become a key differentiator in attracting and retaining clients.

Also, traditional legal processes can be inefficient, with tasks such as document review, legal research, and contract analysis consuming significant time and resources. As the volume of data and legal complexities continue to grow, manual approaches become increasingly unsustainable. 

The limitations of off-the-shelf solutions

While generic plug-and-play legal AI solutions may seem attractive at first glance, they often fail to account for the unique needs and nuances of individual law firms. 

These generalised solutions are designed to cater to a broad audience. So what you often get is a one-size-fits-all approach that may not align with your firm’s specific processes, practice areas, or culture. It’s common for firms to end up compromising on functionality, customisation, or integration capabilities.

Too many firms’ IT departments are being pressured by their partners, the firm’s clients, and the general noise in the market, to jump onto the generic AI bandwagon. It’s important to remember that implementing an AI solution is like implementing any other piece of technology – difficult, expensive, and disruptive. Firms should only implement AI or any other form of technology if they know the problem they are trying to solve and the end solution actually delivers measurable benefits.

Saskia Vermeer de Jongh, global law AI leader at EY Law, advises, “It’s important to start your journey with AI embedded in the life cycle rather than using a standard product. Start within your company and learn from it.”

Firms that have already built their own genAI product include Addleshaw Goddard, Dentons and Simmons & Simmons.

Lack of customisation and flexibility

Every law firm has its own distinct workflows, preferences, and institutional knowledge cultivated over years of experience. 

Off-the-shelf solutions frequently lack the flexibility to accommodate these firm-specific requirements. This means the potential for optimising routine tasks is limited. As a result, firms may struggle to fully leverage the technology – leading to inefficiencies, user frustration, and suboptimal return on investment.

Potential compatibility issues

Law firms often rely on a complex ecosystem of software applications, databases, and information systems tailored to their operations. 

Introducing an off-the-shelf legal AI solution into this intricate environment can present compatibility challenges. This can require extensive integration efforts or costly third-party interventions. Causing workflow disruptions, data silos, and increased operational complexities, undermining the intended benefits of adopting the technology.