As more businesses across a broad spectrum of industries capitalize on artificial intelligence (AI) to make their internal processes more efficient; law firms need to consider how they too can use AI to streamline their cases and produce more opportunities to take on clients. For legal services, however, using AI is not as clear-cut as it is for other industries. Due to the sensitive nature of the law, as well as individual client circumstances, attorneys need to be scrupulous in their adoption of the technological phenomenon.

While lawyers should never sacrifice individual client care or rigorous case research, there are a number of ways that attorneys can incorporate AI for the purpose of taking on more clients.

Are Law Firms Already Using AI To Take on More Clients?

AI adoption has been slower in the legal industry compared to others, largely due to risk concerns and a lack of awareness around application. According to a 2023 Thomson Reuters Institute report on generative AI within law firms, 80% of partners or managing partners in the study pool said that their firms had concerns surrounding the risk of using generative AI or ChatGPT within their firms. Interestingly, this is contrasted by only 44% of the associates in the pool’s expressing the same concerns. The study concluded from this information that awareness made the difference. Regardless of this fact, each attorney interviewed cited concerns surrounding privacy, accuracy, and confidentiality.

While the Thomson Reuters report highlights a general reluctance to adopt AI among medium- to large-sized law firms, a 2023 Goldman Sachs report on the effects of AI on economic growth depicted another side of the story. According to their findings, approximately 44% of legal tasks can be automated – noting that industries with a percentage of automation between zero and 49% are considered only ‘partially exposed’ to automation and are more likely to use AI as a tool or service. The takeaway from this report as it pertains to law firms is that as investment into AI increases, more and more pressure to utilize AI as a complement will increase, largely because automation ultimately results in the ability to take on more work and increase economic growth.

As to the question of whether law firms are already using AI to take on more clients, the answer is both yes and no. Many law firms have been quick to use AI to automate routine tasks. However, arguably even more law firms have been adamant about not using AI in any capacity within their work. Despite this, almost all law firms do actually use AI in some form. Legal platforms that attorneys frequent, like Westlaw, Practical Law, and LexisNexis, have utilized AI for some time. The difference, perhaps, is the introduction of generative AI which can draft documents. It may very well be too early to tell whether or not AI will take off in the legal field, but it is worthwhile considering the ramifications of being behind a turning wheel.

Tasks AI Can Automate to Take on More Business

The most palpable way that AI can help law firms take on more business is by automating and streamlining routine, arduous tasks. The more tasks that are taken off attorneys’ plates, the more time that can be spent developing their firms as businesses. Because serving clients, often experiencing some of the hardest moments of their lives, is so important to attorneys, building clientele and actively locating new clients can be put to the side.

Routine Tasks

Reviewing contracts, agreements, and other legal documents are labor-intensive tasks that AI can streamline. Machine-learning algorithms can analyze and extract key clauses, identify potential risks, and ensure compliance with relevant laws and regulations. By automating document review processes, law firms can potentially expedite workflows, minimize errors, and allocate resources more efficiently.

Certain Forms of Legal Research

Conducting thorough legal research is a time-consuming yet essential aspect of practicing law. It is also a process that is crucial for most, if not all, client cases. AI-powered tools can swiftly sift through volumes of case law, statutes, regulations, and other legal documents to extract relevant information. Natural language processing (NLP) algorithms enable these tools to understand complex legal queries and provide precise answers, saving lawyers hours of manual research time. The caveat to using AI for legal research is that it can present a privacy/confidentiality concern. Attorneys should be cautious when using tools such as ChatGPT to analyze private information relating to a client. This is largely because it could pose a threat to the confidentiality of that information, while serving as a teacher to the AI platform you use. Additionally, while using AI for legal research can be exceptionally useful in expediting the time spent on research, it is important for attorneys to fact-check any information it relays.

Due Diligence

AI-driven due diligence tools can significantly accelerate the due diligence process in mergers and acquisitions (M&A), real estate law, and other legal matters. These tools can flag potential issues or discrepancies for further review by legal professionals. By automating due diligence procedures, law firms can enhance accuracy, reduce turnaround times, and better serve their clients’ needs.

Risk Assessment

Technology-assisted review (TAR) tools can help attorneys identify and react to potential risks much earlier. This enables attorneys to be able to advise their clients appropriately and timeously in order to minimize and curtail legal stumbling blocks. By using TAR tools, lawyers are able to more accurately assess and predict case outcomes, which in turn minimizes costs and risk to clients.

Can Using AI Result in More Clients?

The adoption of AI by the legal industry presents both challenges and opportunities for law firms seeking to expand their client base. While there is a general reluctance among some firms to embrace AI due to concerns about privacy, accuracy, and confidentiality, the potential benefits of automation cannot be overlooked.

A significant percentage of legal tasks can be automated, which could result in increased efficiency, reduced costs, and enhanced competitiveness. Automation can ultimately free up valuable time and resources to focus on client-facing activities, leading to more available time and resources for new clients and general business development.

Time not spent performing arduous case reviews, due diligence, or legal research can be shifted to actively participating in your marketing campaigns or considering all your options for expansion – all while having the capacity to take on more clients.