The Argument for Inviting AI into Your Law Firm

Ah, the unknown. It?s been frightening humans since the beginning of time. For lawyers, concerns around integrating emerging artificial intelligence (AI) tools into their workflow can be especially acute due to their risk-averse and traditional nature. And given legitimate concerns around ethics, privacy, quality, reliability and compliance ? not to mention job security ? these fears are understandable.

But when implemented strategically and carefully, AI can boost a law firm?s capabilities, making it more efficient, effective and resilient. In today?s competitive legal market, that?s essential.

AI has also become a priority for clients ? most of whom (72%) would be more likely to recommend a law firm that uses AI to deliver its services, according to a recent Accenture report. By integrating cutting-edge technology, your firm demonstrates a commitment to delivering complex services in a cost-effective manner.

While 40% of larger firms are already using AI-enhanced tools, according to a 2023 Thomson Reuters?s AI legal survey, smaller firms are lagging behind. And yet, this untapped potential could be transformative if leveraged effectively to mitigate risk.

Here?s how AI is reshaping the way law firms operate.

Offloading low-margin work

Think about what you?d describe as the low-hanging fruit at your firm. What menial tasks are attorneys regularly spending time on? There lies the opportunity to improve efficiency.

AI can automate document review, data entry, basic legal research and other routine assignments so your team can focus on strategic, revenue-generating work. With AI-powered digital assistants such as Termi, an entire firm?s worth of data is within easy reach with just an instant message query.

Free up capacity

If there are teams within your firm that are stretched thin and struggling to manage their workload, how can you free up their capacity without making new hires? You could use AI to automate some of their work to improve client service and response times ? and avoid burnout. For example, using AI to automate time-intensive systems testing will free up IT staff for higher-level work.

Improve budgeting and pricing decisions

Collection realization, or the percentage of billed fees that a firm successfully collects from its clients, has been declining since 2022, according to Thomson Reuters. Poor pricing education, client fee pushback and inefficient budgeting practices are all to blame.

Firms can address this by leveraging AI to make better pricing decisions and enhance potential profits. By analyzing historical data, AI can formulate pricing strategies and suggest adjustments. AI can also assess how the firm is staffing cases and recommend changes, optimizing the ratio of partners, associates and paralegals for greater efficiency and profitability. Accurate project budgeting can go a long way toward securing a client?s continued trust and business.

Streamline billing

Inefficient billing processes can cause delays and errors in invoicing, impacting cash flow and client service. Combined with the right billing support infrastructure, AI can enhance efficiency by automatically gathering information around collections and follow up, alerting the firm only when action is needed.

It can also ferret out failure points and help lawyers prioritize the most important collections based on deal value and potential margin. Ask an AI-enabled assistant like Termi to analyze billing entries related to various cases and it will reveal useful takeaways. Are specific partners and associates often associated with less profitable matters? Are certain tasks regularly subject to write-off requests? Is the firm writing off substantial time to train junior associates or get lateral hires up to speed? Firms can harness AI?s pattern recognition and predictive analytics features to establish upfront budget expectations, positioning them to meet and collect on their billables.

Tighten quality control

One of the primary causes of billing write-offs in legal matters is the time spent revising an associate?s work, helping newer attorneys get up to speed on a case and other administrative tasks. AI can become the first line of defense for quality control by giving associates essential information and summaries upfront, enhancing overall quality and reducing the need for revisions.

Easing AI adoption fears in law firms

Encouraging law firm leaders to invest in AI is no small feat, but while it?s reasonable for lawyers to be wary of uncertainties around new technology, there are many benefits to keeping an open mind.

Leveraged properly, AI can enhance efficiency, reduce costs and improve the accuracy of legal work. By starting with small, manageable pilot projects and demonstrating clear, measurable successes, firms can build confidence in AI?s capabilities and gradually expand its use. Educating leaders on the specific advantages and addressing their concerns with data and real-world examples can further ease the transition and showcase AI as a valuable tool for the firm’s growth and competitiveness.

Etiquetas: law firm and AI