According to a report on legal trends for solo and small firms released by law practice management company Clio, these firms, defined as two to four professionals, plan to adopt artificial intelligence (AI) at a faster pace than their larger counterparts. Significantly, their clients are even more enthusiastic about the technology, believing that AI’s incorporation could result in more affordable and higher-quality services. Specifically, 38% of prospective clients believe that lawyers using AI-powered software can offer more affordable services, and 32% believe they can provide higher-quality services.
The study, conducted with data from 1,446 surveyed legal professionals of all sizes, reveals, though, that lawyers remain cautious about AI’s use in their practices. Over half of them believe that AI isn’t yet advanced enough to be reliable, and almost half claim to distrust AI.
However, the majority of lawyers do agree that AI’s potential benefits outweigh its costs. Overall, amongst the legal professionals surveyed, 19% admit to already using AI in some form within their practice. Meanwhile, a promising 40% of solo lawyers and 35% of small-firm attorneys claim they plan to adopt AI within the next six months. For comparison, only 24% of lawyers in larger firms plan the same.
A crucial point highlighted in the survey is that solo and small firms, often with leaner operations and fewer resources, can stand to benefit significantly from AI’s automation. The survey points out, “For firms with fewer resources available to them… AI presents tremendous potential to scale their businesses and, effectively, punch above their own weight.”
Even though clients seem enthusiastic about the benefits AI can bring to legal services, a significant chunk of lawyers remains unsure. Across specific legal tasks, it appears that clients are more favorable to the use of AI than their lawyers.
The survey results suggest that firms that adopt and market their use of AI software may have a competitive advantage in marketing. However, the report’s vagueness regarding AI’s definition and types has resulted in some confusion. The lack of detail about the AI at issue here implies the need for a more grounded approach to understand the impact of various forms of AI on legal practices.
Read the full report on the LawNext website.