The financial benefit to an AI revolution
Whether you are someone who embraces AI with open arms or is fighting its utilisation every step of the way, there is no denying that the presence of AI in the legal sector has had a significant transformative impact.
There is a lot of marketing hype around AI utilisation and so it is important to get down to basics about what the adoption of new technologies means for you financially.
In particular, it is best to consider the two main approaches taken by solicitors to consider which may have the best impact on financial strategy.
Careful and cautious
When anything new enters into the public or professional domain, there will always be those who are hesitant and prefer to wait for the data to appear before making a move.
As a solicitor, you are likely concerned with well-informed decision-making, as this is an integral part of the work you perform.
Recent research indicates that caution may be a wise way to approach emerging technologies.
Having found that “technology has not yet ushered the end of law firms as we know them today”, research instead indicates a need to understand and navigate an “increasingly complex ecosystem” of legal practitioners and “technology and data providers” has resulted in some resistance to technological transformation.
The Financial Times also highlighted a concern shared by a third of UK law firms that “generative AI will have a negative impact on profits and margins” due to its reduction in workload for junior staff, resulting in a reduction in billable hours and profit margins.
Traditional ways of working might still be financially beneficial to your practice.
It is worth engaging with professional financial advice if you have any queries or concerns about the economic sustainability of your current approach.
Early adopters
There will always be some who are keen to embrace every new technological leap as a way of ensuring they stay ahead of the competition.
Given that AI is often presented as a way of making the more mundane aspects of work run more efficiently, it is little wonder that it has been embraced by many solicitors.
As the Financial Times highlighted, given that only a third of UK law firms had strong reservations around the use of AI, most are neutral or optimistic about its functionality.
In particular, it is reported that “most lawyers say they are optimistic about the impact on margins and revenues of adopting technology that can summarise, search, draft and review” as the technology frees up individuals to conduct higher-value work.
The decision of whether to embrace new technology is always a challenging one.
While we cannot predict the way that advances might evolve in the future, we can help you to align your finances with how you want your firm to operate.
Seeking professional financial advice is wise before investing in anything significant to ensure that it is the best decision for you.
Speak to our team today for more advice on keeping up with the times.