SRA says AI could provide “major advantage” but warns law firms of risks

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“AI has very high potential to help firms, consumers and the wider justice system,” according to the Solicitors Regulation Authority’s (SRA) latest Risk Outlook series. However, the risks associated with the rising use of AI must also be considered with the SRA recommending law firms look at the proposed national AI strategy to help them introduce and supervise new systems.

The SRA’s report outlined the various opportunities arising from the use of AI as the “increasing availability makes it easier for firms to use it to provide services more affordably, effectively and efficiently than before”. The creative use of AI could also help law firms to develop new business models and contribute to career satisfaction – and the advantages will continue to grow as “consumers become increasingly comfortable with its use”. In fact, the SRA said that the risks might not come from adopting AI, “but from failing to do so”.

Among some of the opportunities are:

• speed and capacity – the ability for AI to deliver admin tasks, freeing up time and resource to focus on more challenging and labour-intensive tasks;
• cost savings – by automating certain tasks, less time may be spent on cases, lowering the cost of the work to benefit both firms and consumers; and
• new business models – AI chatbots can help firms to provide services to clients at times when staff are unavailable.

Alongside the opportunities that AI offers, the SRA also put together a list of risks associated with the technology, including:

• errors – mistakes made by AI language models have already happened and can lead to consumers paying for legal products that are inaccurate or don’t achieve the intended results and/or firms misleading the courts;
• confidentiality and privacy – these threats include confidential data being revealed when transferred to an AI provider for training;
• crime – the SRA says that law firms must be aware that AI “has the potential to help criminals as well as legitimate activities”.  

At the end of last year, it was reported that more than 60% of large law firms and one-third of small law firms were at least exploring the potential of new generative systems. While it’s “difficult to predict how quickly AI will change the legal sector”, the SRA’s Chief Executive Paul Philip said “we won’t be able to ignore its impacts”.

Philip added: “So far it has mainly been larger firms using AI. However, with such technology becoming increasingly accessible, all firms can take advantage of its potential. There are opportunities to work more efficiently and effectively. This could ultimately help the public access legal services in different and more affordable ways.

“Yet there are risks. Firms need to make sure they understand and mitigate against them – just as a solicitor should always appropriately supervise a more junior employee, they should be overseeing the use of AI. They must make sure AI is helping them deliver legal services to the high standards their clients expect.

“Our Risk Outlook summarises key things firms should be considering before using AI.”