Embracing AI in Law: Strategies for Firm Growth and Innovation

Embracing AI in Law: Strategies for Firm Growth and Innovation

According to an article by Attorney at Work, artificial intelligence (AI) is reshaping the legal space the same as so many other industries. The article cites Clio’s 2024 Legal Trends Report, which found that “74% of law firm services traditionally charged to clients using a billable-hour pricing model are potentially subject to automation by AI in law.” However, rather than signaling job losses, AI in law presents an opportunity for firms to enhance efficiency, fill talent gaps, and deliver greater value to clients.

Two years after the launch of ChatGPT, AI’s role in legal practice is rapidly expanding. While AI has long been used for legal research, eDiscovery, and document management, the emergence of generative AI (GenAI) is accelerating change. The Clio survey found AI adoption among legal professionals surged from 19% in 2023 to 79% in 2024. 

Similarly, Wolters Kluwer reports that 68% of legal professionals use GenAI weekly. Leading applications include legal research, document review, brief drafting, and administrative tasks. Looking ahead, AI in law will further enhance efficiency and predictive capabilities, transforming how firms operate.

As AI automates routine legal tasks, firms must shift their focus to strategic, advisory, and consultative roles. Attorneys should leverage their human strengths, such as professional judgment, emotional intelligence, and creativity, to differentiate their services and drive client value.

AI is challenging the traditional training models used by law firms, where junior associates typically gain experience through tasks like document review and other repetitive activities. To adapt, firms need to implement personalized, hands-on training that enhances legal, business, and technological skills. Continuous education in AI will be essential, yet surveys show that most legal professionals have received little to no formal training in generative AI.

AI in law also impacts billable hours, which may necessitate alternative fee arrangements such as fixed fees, value-based billing, and subscription models. These structures ensure fair compensation while offering clients greater predictability. Firms must invest in refining pricing strategies to align with AI-driven efficiencies.

As AI adoption accelerates, firms must proactively address ethical considerations, including confidentiality and competence, as outlined by the American Bar Association. Midsize and smaller firms, in particular, stand to benefit by leveraging AI to close talent gaps and improve service delivery. For firms that embrace innovation, AI presents a powerful tool to drive sustainable growth and long-term success.