Despite the rhetoric that AI is quickly reshaping how businesses operate, and a mounting pressure on them to integrate it into their workstreams, our close partnerships with law firms around the world tell a more measured story.
We’re witnessing a growing curiosity around the possibilities of AI, but it’s clear from our conversations with clients – including UK, U.S. and International firms –that many are still deciphering its role in their resourcing and wider operations, with plenty of consideration for potential risks.
This observation was strongly echoed in our most recent series of U.S. Leadership Lounge roundtables, where C-suite, HR, and Responsible Business leaders shared their take on AI and the tactical ways their firms are already deploying it. Although each group offered a different vantage point, universal priorities emerged, and it was clear that there is a collective commitment to ensure AI adoption is meaningful, sustainable and guided by human judgement.
Efficiency vs expertise
The primary benefit of AI for law firms, right now, is seemingly in its ability to sort large volumes of data quickly, with 17% of law firms already using it for Document Review*. However, it’s clear from our work with decision-makers that they’re increasingly concerned about the subtleties AI cannot detect in critical and high-admin work (tone of voice, ambiguity, nuance, errors). More than ever, firms are seeking the crucial human skills – and critical thinking – that tech just can’t replicate.
Although many legal teams have quickly embraced AI for its efficiency in large-scale admin tasks, they are also overwhelmingly focused on ensuring that the crucial layer of human interpretation and critical thinking isn’t lost in the race to productivity. From a resourcing perspective, this is about employers ensuring there are great people in place with the skills to oversee AI-generated work, and that the focus is on how tech can work alongside human talent.
Careful innovation
Although firms are generally approaching AI with care, they’re also aware that this is a pivotal moment for the market and a chance to propel their business forward. Several clients are establishing ‘Innovation’ departments to explore options, drive adoption, and trial new technology in a safe and considered way.
We’ve seen this trend reflected in emerging new roles from Improvement Specialists to Chief Innovation Officers (CINOs). Although this investment is primarily happening at U.S. firms, it’s also beginning to filter through to their operations in the UK and EMEA, and clients keen to grow and work alongside AI are looking to bring in dedicated resource to steer them through the sensitive and complex landscape. It’s a really exciting time to partner with them to map out their visions and talent needs!
Governance and empowering teams
AI is increasingly finding its way into learning and development initiatives, as leadership teams look to equip their people with the knowledge and confidence to use it responsibly. Approaches shared in our discussions ranged from the introduction of Risk & Compliance training modules and mandatory workshops to the appointment of AI Champions and Shadow Boards to engage the team members who are interested in tech and give them a voice in firmwide decision making.
This breadth of activity highlights how law firms are addressing the challenge in distinct ways, tailored to their individual cultures and requirements. What these strategies have in common: the goal to embed AI within existing standards and the consensus that tech can only operate effectively within the guardrails of human judgement.
There is also consideration for the impact on pricing. Where AI practices replace human effort and billable hours, firms are considering how they may need to price differently to reflect value and output, rather than time.
Ethics and impact
The growing focus on the ethics of AI, particularly its impact on people and the environment, came across in each roundtable, and especially in our conversation with Responsible Business leaders.
Environmental
Several clients expressed the desire to track the unhappy environmental impact of their AI usage, amidst concerns that though the carbon footprint of AI is significant, reliable tools for measuring this are in short supply.
Although there are big question marks over this, and its early days for firms, it was great to hear their commitment to developing transparent, sustainable strategies in the years ahead – of increasingly high value to today’s talent market.
The talent pipeline
Leaders are also thinking about the long-term impact of AI on the talent pipeline. While they remain committed to the value of human skills, there’s a definite – and necessary – consideration for how tech might slowly taper the need for human skills. There is a concern that trainees and Paralegals are getting less exposure to foundational, knowledge-building tasks and this could be having a fundamental impact on their development.
The challenge, therefore, is in ensuring AI enhances progression and boosts existing output, rather than quietly eroding the building blocks of future expertise and/or replacing human talent. Rather than resisting AI, it’s about seeing the opportunity to embrace it in a way that enhances human contribution. We work closely with clients to reflect this balance in their talent strategies, through carefully designed job specifications and inclusive hiring processes.
As people-first recruiters, we are passionate about opening doors to as many individuals as possible, and we’re reassured to hear leading firms thinking along these lines. Through my work with candidates from all corners of the world, I see first-hand how important it is to create meaningful springboards for future talent, and to safeguard the irreplaceable value they bring.
People-first innovation
AI presents extraordinary opportunities for the legal sector, but while it’s high on the agenda for law firms, decision-makers are overwhelmingly clear that the overriding goal is to maintain standards and critical thinking, and to continue to nurture their human talent.
If you would like to explore how your firm can embrace AI while protecting your people, send me an email or DM to arrange a confidential conversation about building a balanced, ethical, forward-thinking strategy.
Authored by Pete Page, Ryder Reid’s Head of Recruitment Delivery. Pete joined the company in 2021 and is responsible for leading the team of Consultants to deliver world-class client and candidate support. He combines a 20+ year career background in talent attraction with a passion for enabling people to achieve their potential, and is a true champion of harmonious, inclusive, People-first workplace culture.