UK law firms lead the AI revolution

Recent research by Thomson Reuters reveals a significant surge in the adoption of artificial intelligence (AI) among the top 40 law firms in the UK. The data indicates that 78% now promote their AI capabilities to clients, a noticeable rise from 60% last year. The findings underscore a pronounced shift within the legal sector, with the top 20 law firms clearly at the forefront of this technological advancement.

Among these leading firms, the percentage that has appointed a head of AI rose from 35% to 45%. Additionally, the share of firms with dedicated teams driving AI transformation jumped from 60% to 78% in the last year. In contrast, mid-tier firms, ranked 21st to 40th, show stagnant growth, with only 20% reporting the presence of a dedicated team for AI transformation.

The research highlights that 65% of the top 20 law firms now provide legal advice related to AI, compared to merely 15% of the firms in the next tier. The commitment to producing resource materials is also evident, with 100% of the top firms either publishing AI reports or hosting AI-related events, as opposed to only 45% of their mid-tier counterparts. Furthermore, 35% of the top firms have established an AI ethics framework or code of conduct for clients, compared to just 10% among the lower-ranked firms.

Raghu Ramanathan, president of Legal Professionals at Thomson Reuters, stated, “A large majority of law firms now promote their distinction in the use of AI, just as they promote their expertise in specific service lines and industry sectors.” This evolution is indicative of the legal industry's recognition of AI’s potential to boost both productivity and client services.

Moving forward, Thomson Reuters anticipates that the adoption of AI will progress from basic generative AI to more sophisticated, agentic AI tools. The firm's new CoCounsel Legal combines various functions—ranging from legal research to document drafting—into a single, robust platform, representing a major leap in the integration of AI into everyday legal practices.

Despite the notable advancements, a concerning gap remains regarding strategic AI adoption. While 24% of law firms currently have a comprehensive AI strategy in place, a staggering 43% are adopting AI solutions without an overarching plan. Firms that do implement an AI strategy are reported to be 3.9 times more likely to experience tangible benefits from AI compared to their counterparts without such a framework.

Ramanathan pointed out, “An increasing number of law firm customers recognise AI’s potential to enhance both productivity and client service. We expect that organizations will increasingly pick their panel law firms based on the firm’s strengths in delivering AI-powered legal services.” Furthermore, he noted, “The UK’s very largest law firms are responding to this pressure to adopt and integrate AI tools – but the next tier of law firms appears to be adapting more slowly.”

In terms of internal development, 55% of the top firms now offer AI training for their staff, which marks a significant increase from 20% last year. This is particularly telling when compared to only 10% of firms ranked 21-40 that have similar training programs in place.

Ramanathan added, “Top law firms recognise that it’s not just a question of adopting this technology but also ensuring training programmes are in place to use it effectively and responsibly. And while clients increasingly demand their law firms use GenAI tools to increase productivity, they still expect these firms to use top-shelf professional-grade AI.”

As the legal sector continues to evolve, it is clear that AI is becoming an integral component in the strategic framework of top law firms in the UK, setting them apart in an increasingly competitive landscape.