There's no gentle way to say this: law firms not using AI broadly are missing out on potential earnings.

Comparing the AI doubters with firms embracing technology and there’s a clear message: the tech adopters bill more than the industry average. These leading firms spend 12% more on software and 41% more on marketing, boosting their profits by 21%. What's the connection between these high-performing firms? They are solo lawyers, unencumbered by groupthink that's holding back AI adoption.

While almost 80% of firms have tried using an AI tool like ChatGPT, only 8% have adopted it universally, according to the Legal Trends Report by Clio. The primary hesitation is uncertainty about AI's usefulness in their work, followed by concerns about trust, reliability, and the advancement of the technology.

These concerns are backed up by the 2024 State of AI in Legal Report from Litify, which found that firms not using AI say it’s due to security, privacy, and trustworthiness concerns.

The question is—are these concerns truly justified, or are they putting firms at risk of staying competitive?

AI has proven accuracy and can enhance the reliability of legal tasks

One of the foremost concerns among legal professionals is the trustworthiness of AI. However, AI has already demonstrated impressive accuracy in legal tasks. In an AI contract review study, AI achieved 94% accuracy in spotting relevant information such as risks in contracts, compared to 85% accuracy for human lawyers. Remarkably, the AI completed the task in just 26 seconds, while lawyers took an average of 92 minutes. This highlights not only the speed but also the reliability of AI in handling complex legal documents and providing valuable insights.

The real concern about AI accuracy often stems from the use of unverified sources. For instance, judges in Texas and Hawaii have issued standing orders that require AI to be used to verify the accuracy of information in pleadings. The takeaway is that a legal professional should be concerned about citations from AI and provide human oversight to review AI provided sources. However, that shouldn’t be confused with the accuracy of AI application with other tasks in the legal sector like document summarization or contract review.

Clients are increasingly supportive of firms that use AI for legal work

Another key finding from Clio’s Legal Trends Report is that clients are expecting that law firms are adopting AI. A significant 70% of clients either prefer or are neutral toward a law firm that uses AI.

Clients increasingly recognize that AI can enhance the quality and speed of legal service. Firms that integrate an AI system into their workflows are better positioned to meet these expectations, offering more efficient and effective legal solutions.

Adopting legal AI tools can significantly increase productivity

Time is at the core of the business model for the legal profession. AI tools can significantly enhance productivity by automating repetitive tasks like data extraction, document review, and legal research. Legal professionals using AI are saving up to 10 hours per week on their work. This not only frees up time for higher-level strategic work but also improves overall client satisfaction by delivering results more promptly.

By adopting AI solutions, firms can reallocate resources to focus on complex legal issues that require human judgment and expertise. This shift allows for a more efficient use of talent within the firm, leading to better outcomes for clients.

AI will not replace human expertise, but will reshape the legal practice

There's a prevailing fear that AI will replace a human lawyer or paralegal. However, the reality is that AI assistance complements rather than replaces human judgment. While AI can handle routine tasks, it cannot replicate the nuanced understanding and interpersonal skills of seasoned legal professionals.

Trust, reliability, and quality are valid concerns, but the data shows that AI not only addresses these issues but also offers substantial benefits. The integration of AI in legal work will undoubtedly change the practice of law. It may lead to adjustments in the hourly business model and shift the types of work legal professionals engage in. Embracing AI now positions firms to adapt to these changes proactively, ensuring they remain at the forefront of the industry. Solo lawyers are already reaping the rewards.

CaseMark is committed to empowering legal professionals with AI-driven workflow solutions that prioritize security and privacy. By integrating innovative technology with enterprise-class safeguards, we help firms navigate the complexities of modern legal practice effectively.

It's time to consider how AI use can boost the productivity and quality of your legal team and position your firm for future success.