AI in law firms - why (only) ‘quick gains’ aren’t the 'main game'

AI is everywhere - but are law firms using it in a way that actually moves the needle? Automating repetitive tasks like contract review, case law summaries and document drafting has quickly become table stakes - but is that really enough to produce a step-change in value for clients?

For most firms, a focus on AI has equated to reducing inefficiencies rather than fundamentally reshaping how legal services are delivered. But while AI-enabled automation is a good start, it's just that - a start. The reality is that adopting AI at this level is table stakes. Necessary - Yes. But transformative? No. The firms that will win in an AI-driven future won't be those that use AI to optimise; they'll be the ones that embed it into their strategy to create brand new models around value delivery.

Jamie Ng, Global Clients & Markets Partner at Ashurst, takes a deep-dive into why it's crucial that we use AI to evolve the legal profession's role and value beyond the obvious.

The real fruit is (much) higher up

Humans tend to tackle what's easy first and AI is no exception, with a lot of firms now using AI for immediate efficiency gains such as in point solution cases. They may start by using AI for simple document management - categorising and retrieving files faster - or for automating basic email responses. Others in the legal profession have implemented AI chatbots to answer frequently asked internal queries around firm policies or HR procedures. Some firms even focus AI efforts on style and form of legal documents rather than on improving the substance of their legal analysis. But while these applications save time and costs, they don't fundamentally change the nature of the legal expertise that is delivered.

White there is opportunity in automating the 'obvious' - there are areas where AI can be used across high-value work to supercharge human capabilities with additional insights.

Surprisingly, MIT research on AI's impact and use as a conversational tool for customer service agents found that the highest productivity gains occurred in non-routine tasks. When AI was applied to routine tasks - like changing a password - productivity barely moved upwards.  Even the newest employees have the knowledge to do that.  In contrast, when AI was used to support less-experienced workers on more complex problems, the performance gains were significant. The greatest impact of all was seen in rare or difficult cases where even senior employees benefited from AI's ability to surface insights they may not have even considered. This might suggest that generative AI can move most people up the curve substantially, but especially when used as as a thought partner for complex tasks. 

This has very clear implications for today's law firms. The traditional apprenticeship model, for example, sees junior lawyers absorbing knowledge over time as they learn from partners and other more experienced lawyers. AI could accelerate this model dramatically. Rather than simply automating routine work, AI could capture and scale the expertise of these senior practitioners, making high-level legal reasoning, judgment and experience more accessible across the firm.

This and other cases like it is where the real value lies - not in shaving a few minutes off document review, but in using AI to enhance the quality, speed and strategic insight of legal advice at every level.

A watchful eye on quality

An important caveat, however, is that speed and scaled expertise needs to be balanced with closely monitoring quality so that the results aren't a mean of mediocrity. The research suggested that while AI improves productivity, it can sometimes lead to a decline in quality among more experienced professionals. AI-generated responses are often 'good enough' – but not necessarily the best possible answer. Senior lawyers who would otherwise apply deeper critical thinking may find themselves relying on AI-generated outputs without refining them further and the risk is AI accelerates decision-making at the cost of nuance and uncommon insight. 

Firms that want to harness AI effectively must ensure that efficiency gains don't come at the expense of high-quality legal reasoning. Instead of accepting AI outputs at face value, legal professionals should be trained to use AI as a thought partner - one that enhances, rather than replaces, expert judgment.

Evolving the legal profession's role and the firm's value

Law firms often resist technology because they assume it will 'replace' human judgment. The reality, however, is that the opposite is true.  As the authors of the MIT study suggest, the greatest productivity gains may occur not where the AI system is most capable in absolute terms, but where its capabilities most effectively complement or exceed those of human workers.  AI can enhance human capability and the firms that thrive in an AI-powered future will be those that embrace this augmentation.

Breaking down the tasks that make up legal work can reveal where humans and AI can add unique value. AI is exceptionally good at pattern recognition - spotting correlations, risks and anomalies that humans might overlook. But AI lacks the judgment, ethical consideration, critical reasoning and strategic thinking that define great legal minds.

The real opportunity, therefore, lies in a marriage of both of these…

Imagine a legal practice where AI continuously analyses regulator actions, penalties or settlements and other sources to offer predictive insights tailored to a firm's specific client base. Instead of simply answering legal questions, AI could help lawyers ask the right questions in the first place. In addition, by combining AI's predictive power with proprietary firm data - such as past outcomes in the context of regulator interventions - firms can develop uniquely tailored legal intelligence, transforming AI from a cost-cutting tool into a differentiator.

The bottom line is that a few years ago, AI was seen primarily as a way to be a cost leader; but today, it can also be a competitive advantage and the firms that use AI for both will lead the market.

It all comes down to strategy 

Importantly, the days of simply saying 'yes, we use AI' are over. Clients are becoming more sophisticated in their understanding of AI and they demand transparency and strategic application. They expect firms to explain how AI is applied, what safeguards are in place and how it enhances - rather than replaces - legal expertise. They want assurance around compliance, risk management and ethical considerations. 

Critically they don't want AI for AI's sake and legal firms that fail to articulate their AI strategy clearly will struggle. Those that can demonstrate not just adoption but mastery - using AI in a way that aligns with their business strategy and enhances client outcomes - will set the new standard for excellence.

AI isn't just changing how law firms operate - it's redefining what our clients value and the firms that treat AI as a strategic lever will be the ones shaping the future, not just reacting to it.