Joanna Lee-Mills is an affordable housing partner at Ward Hadaway law firm - here she assesses law’s rapid AI transformation
The legal profession finds itself navigating unprecedented change. As a social housing and real estate partner observing this transformation across the sector, I see artificial intelligence evolving from experimental technology to operational necessity. This shift raises fundamental questions about how legal services are delivered, risk is managed and value created for clients.
Recent data reveals that 96% of UK law firms now incorporate some form of AI into their operations. Yet this widespread adoption coincides with high-profile sanctions for AI-generated errors – a tension that defines our current moment. Understanding this paradox and its implications for business has therefore never been more critical.
Consider the stark reality: law firms that are investing (often large sums of money) in AI platforms and those firms are reporting payback periods in a remarkably short period of time. In real estate, I’ve seen how AI-powered due diligence can compress say, six weeks of work, into a matter of days - thereby reducing costs significantly. These aren't isolated examples. They represent a fundamental shift in how legal services are delivered and priced.
The business case you can’t ignore
From decades of advising on complex transactions, it’s clear that AI changes the game in ways that matter to every business’s bottom line. When your competitors complete acquisitions 30% faster because their lawyers use AI-powered due diligence analytics, when they secure lower fixed-fee quotes on complex large portfolio transactions, when their litigation strategies draw on AI that predicts judicial decisions with documented 85% accuracy – well, that’s not just about technology. That’s about competitive survival.
The economics make compelling reading. Yes, law firms are investing up to six figure sums in enterprise AI platforms. But some of them are reporting payback periods of under 18 months through efficiency gains alone. Those savings flow directly of course, to clients.
More importantly, AI transforms what's possible. In my own field of advising the social housing sector, where margins can be challenging and regulatory complexity overwhelming, AI-powered due diligence maintains quality whilst meeting budget constraints that would have been seemingly impossible just two years ago.
Beyond the obvious applications
Most discussions about legal AI focus on document review. This is fair enough, as AI can analyse contracts over 60% faster than humans. But that's become the established starting point across the sector. The real excitement lies in what's emerging beyond these foundational applications.
Take litigation prediction for example. Platforms like Lex Machina can analyse millions of court cases to forecast how judges will rule on specific motions. They're achieving accuracy rates above 85%. Think about that. Knowing your chances before you file. Understanding which arguments resonate with which judges. It fundamentally changes how parties will approach disputes.
Smart contracts that self-execute when conditions are met are eliminating entire categories of commercial disputes. AI systems identify regulatory risks before they materialise, scanning the horizon for changes that might affect your business. This isn't speculation - it's functionality that already exists today.
A necessary note of caution
We do however, need to be clear about the risks and the case of Ellis George LLP and K&L Gates serves as a sobering reminder. Their lawyers submitted briefs containing nine incorrect citations out of 27, including two completely fictitious cases. The result? Sanctions, embarrassment and damaged credibility.
This is why the best law firms treat AI like a brilliant, but green, associate. Valuable for certain tasks, but requiring supervision. The technology excels at pattern recognition, data processing and initial analysis but it can struggle with nuance, context and the kind of creative problem-solving that defines excellent lawyering.
The regulatory landscape adds another layer of complexity. Between the government's AI Action Plan, ongoing copyright consultations and the EU AI Act’s staged implementation through 2027, the framework keeps shifting. For businesses operating internationally, this creates a compliance maze that itself requires expert navigation.
The human element remains central
Critics worry we’re automating away the experiences that create good lawyers and there is indeed merit to this concern. Reading thousands of contracts teaches pattern recognition that no classroom can replicate. The challenge lies in preserving these learning opportunities, whilst embracing efficiency.
But here’s what I’ve observed: AI doesn't replace human judgment – it amplifies it. That senior associate who once spent almost 60% of her time on document review? She now focuses on negotiation strategy and commercial solutions. Junior lawyers can skip the more process-driven or mundane tasks and move faster to meaningful work. The profession becomes more strategic, more advisory, more valuable.
Your practical playbook
So what should business leaders do? I’d start with these questions for your legal advisors:
First, which specific AI tools do they use? Vague answers might suggest shallow adoption. Look for firms that can articulate their technology stack and crucially, their verification protocols.
Second, how do they use data analytics in their advice? Whether it’s litigation strategy or regulatory compliance, data-driven insights should inform their recommendations.
Finally, what safeguards exist against AI errors? Post-Ellis George, robust verification isn’t optional – it’s essential.
The revolution accelerates
The legal profession has weathered technological disruption before. The printing press, photocopier and internet all promised to make lawyers obsolete. Instead, each innovation made law more accessible and lawyers more valuable. AI follows this pattern with one critical difference – the pace of change is exponential, not linear.
Within two years, the gap between AI-enabled and traditional firms will become a chasm. Costs will diverge dramatically. Service speed will be incomparable. Quality, paradoxically, will improve as AI eliminates human error whilst freeing lawyers for higher-value work.
For business leaders, the implications are clear. This isn't about whether your lawyers use AI - it's about how thoughtfully they've integrated it. The winners won't be those who blindly adopt every new tool, but those who reimagine what legal services can deliver.
Your move? Start demanding more. Ask hard questions. Because in this transformation, standing still isn't neutral – it’s falling behind.
The future of legal services is being written now. Make sure you’re working with firms that are helping.
