emerging

Internal AI Focus in Law Firms

Law firms primarily utilize AI for internal operations, with client-facing applications still in early stages.

Detailed Analysis

While AI is being adopted, its application within law firms is predominantly focused on internal functions like back-office administration, business development, marketing, and knowledge management. "Firms primarily use AI for internal purposes such as back-office administration, business development and marketing, organizational management and knowledge management," the report states. Although larger firms are exploring client-facing applications like legal research and document drafting using LLMs, widespread use for client work remains limited due to factors like distrust in AI outputs, the need for further testing, and cost considerations.

Context Signals

Over 100 firms use AI for drafting newsletters and social media posts. Firms are using AI services like Microsoft Copilot and Azure. Client-facing AI applications are still largely in the testing phase.

Edge

As AI technology matures and trust increases, client-facing applications will likely expand rapidly, transforming how legal services are delivered. The development of firm-specific AI models and prompt libraries will accelerate the integration of AI into core legal work. The increasing use of AI for internal functions could free up lawyers to focus on higher-value tasks, potentially improving the quality of client service.
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TRENDS
For most law firms, generative AI remains largely in the testing and development phase, particularly when it comes to legal client work.