AI lawyers warn firms must adapt

The legal landscape in the UK is on the brink of a technological revolution, with AI set to reshape how firms operate by 2026. Helix Law, a forward-thinking litigation firm established in 2011, has adopted AI comprehensively in its practice. With predictions indicating that the legal sector is entering a phase of rapid adaptation, Helix Law's partners, Jonathan Waters and Alex Cook, contend that traditional City firms risk losing their competitive edge.

Jonathan Waters stated that “Solicitors are traditionally seen as a step behind the curve in terms of technology, but 2026 will be a tipping point when a majority of the industry becomes AI-powered." He believes that this shift will create a significant divide between innovative smaller firms that leverage AI and established firms that prefer traditional methods.

Helix Law describes its operations as “fully AI-powered”, utilising intelligent solutions for various components of legal work, from case management to administration tasks. The firm became one of the first to implement AI in its operations when it partnered with Harvey AI in 2023. With automation proving financially advantageous, more firms are reportedly following Helix’s lead, resulting in industry-wide changes in fee structures and recruitment strategies.

"City firms know this is coming. The barbarians are at the gate,” Jonathan added, implying that many City firms are aware of the imminent changes yet remain resistant to alter their established practices. As AI tools handle more routine tasks, Helix Law's partners assert that they can improve billing efficiency, increasing their average fees per employee to around £180,000.

Since its founding, Helix Law has adopted varied pricing models, including monthly retainers and fixed fees, instead of the traditional hourly billing system. Jonathan emphasised that “As AI takes care of menial, time-consuming tasks, we’re moving closer to a world where all firms can bill based on value and efficiency."

In counterpoint to fears surrounding AI-induced job losses, Helix Law maintains that the technology will foster a more capable and efficient workforce. The firm offers competitive salaries to new paralegals, suggesting that their pay scales can rival those at City firms. “We are actively recruiting the best talent and leveraging that talent with AI, not replacing it,” concluded Jonathan.

Ultimately, Helix Law's model aligns client interests with appropriate pricing frameworks, diverging from the typical hourly rate structure which often leads to inefficiencies. “When we work for a fixed fee or a contingent fee, our incentives and the client’s incentives are aligned,” he explained. The combination of technology and skilled professionals could redefine the legal field, compelling firms to embrace change or risk obsolescence.