Artificial intelligence (AI) is rapidly reshaping industries worldwide, and the legal sector is no exception. While AI offers immense opportunities to enhance efficiency, reduce manual effort, and improve client outcomes, its implementation must be approached with care. Striking the right balance between innovation and responsibility is key for law firms looking to harness AI’s power to its full potential.
The One Advanced Legal Trends Report 2025 reveals that only 10% of law firms have fully integrated AI, with another 16% exploring its applications. Another recent survey by OneAdvanced revealed that the legal sector is also most likely to be using AI compliantly, with 61% reporting using AI within a policy that allows unrestricted use, and a further 29% saying they use AI in a restricted policy capacity. In both instances, AI is being used under a company-wide AI policy, indicating a level of regulation and oversight on the behalf of companies.
In the same survey, 29% of legal professionals said the main thing holding them back from further use of AI at work was concerns around data privacy and security – an appropriate concern given the often sensitive nature of legal work.
This cautious approach reflects understandable concerns, including risks of unreliable outputs, ethical challenges, and data readiness issues. However, AI is already showing its value in various legal functions. Common uses of AI in law firms including document drafting and legal research (33%) and eDiscovery (32%). AI allows legal professionals to focus on high-value tasks like case strategy and client advisory by reducing a traditionally high admin burden.
Addressing concerns
Ethical considerations are a key consideration that can weigh heavily on legal professionals. Ensuring AI does not replace human judgment in critical legal decisions, maintaining client confidentiality, and adhering to regulatory requirements are all valid concerns. Furthermore, 23% of firms report that their data is not well-structured enough for AI use, raising questions about data readiness.
Despite AI’s potential, law firms face challenges when integrating it into their practice. A major concern is the reliability of AI-generated outputs. If the underlying data is flawed or biased, AI tools may produce inaccurate results. Additionally, 32% of lawyers feel they lack the expertise to implement AI effectively, highlighting a knowledge gap that can slow adoption.
These concerns should not deter firms from adopting AI. Instead, law firms must take a measured and strategic approach, supported by training, governance, and careful selection of AI tools.
It’s not a question of whether AI should be used, but how it can be implemented while safeguarding the core values of the legal profession.
Best Practices for Implementing AI in Law
To fully harness the benefits of AI, firms must adopt deliberate strategies that prioritise responsibility, governance, and human oversight:
1. Adopt AI incrementally
It simply isn’t possible to implement transformative AI into a law firm overnight. The best way to approach the task of bringing AI into a business should be through targeted approaches. Introduce AI tools first where they are likely to bring the most value.
For instance, automation of routine tasks, such as time capture or document assembly, allows lawyers to focus on strategic work. Starting small and scaling based on success enables firms to maintain control and evaluate AI’s impact effectively. By addressing repetitive tasks first, law firms can combine technology with human expertise to deliver better client outcomes.
2. Humans + AI
AI is not a replacement for legal expertise; instead, it is a powerful tool that augments it. AI can rapidly process and analyse vast amounts of data, but human lawyers must critically review AI-generated insights to ensure their accuracy and legal soundness. Law firms should establish workflows that blend AI-driven efficiencies with human judgment at key decision points.
3. Build ethical and regulatory frameworks
AI adoption must revolve around ethical practices and adherence to industry regulations. In law, this is essential for data protection, handling sensitive information, and preventing their data from being inadvertently consumed as part of LLM learning. Governance frameworks should address potential biases, ensure transparency in AI-driven decisions, and protect client confidentiality at all costs.
Law firms must aim to stay ahead of regulatory developments, acting as leaders rather than followers, and implementing when others are still at the consideration stage. Delaying regulatory updates could be potentially damaging for law firms, and should not be underestimated in their importance for the future of AI and law.
4. Invest in training and education
Creating training programs that ensure staff understand the capabilities, limitations, and ethical implications of AI technologies will be imperative to success, as 32% of lawyers currently feel that lack of expertise is a barrier they face in using AI to it’s full potential.
Workshops, partnerships with AI specialists, and online courses can demystify AI for legal professionals. Not only does this support seamless integration, but it also helps lawyers focus on high-value tasks such as case strategy and client advising. Upskilling fosters continuous professional growth and adaptability in an industry defined by innovation.
5. Enhance data governance and quality
Quality data is essential for making the most of AI, which relies on robust, structured datasets to produce reliable recommendations. However, a quarter of firms report their data is not currently up to the quality standards needed for AI applications. Poorly structured or outdated data can lead to biased or inaccurate outputs, compounding risk instead of reducing it.
Firms must prioritise data governance to enable AI success. Cleaning and structuring datasets, auditing data frequently, and complying with data-specific regulations (e.g. GDPR) are vital steps. Governance structures should also ensure transparency, protecting client confidentiality and reinforcing trust.
Industry bodies like The Judicial office and The Law Society are actively working to influence policies for AI’s safe adoption. By aligning with these initiatives, firms can build AI policies that instill confidence and reflect sector-wide best practices.
AI as an asset, not a threat
The legal sector faces a unique opportunity to bolster its capabilities with AI. Concerns about reliability, bias, and ethics are valid, but they should drive caution, not avoidance. In addressing these challenges directly, law firms can transform AI from a potential risk into a powerful ally.
AI is not here to replace lawyers but to make them more efficient, insightful, and client focused. Legal professionals who adopt AI responsibly will lead the way in creating a more innovative and responsive legal system. With careful governance, data integrity, and focused training, firms can ensure that they use safe, secure, and compliant AI that empowers the legal industry to thrive well into the future.
