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The use of generative artificial intelligence (AI) has grown across the legal sector. In-house lawyers have been utilising the tech for months, large law firms are following suit with increased use, and even smaller firms are employing the tech. According to our report, Lawyers cross into the new era of generative AI, more than a quarter (26%) of respondents are using AI once a month, a rise from just 11% in July 2023. To put it simply: generative AI has changed the nature of legal operations. 

Respondents from academic institutions and large law firms were the most likely to use AI tools for work, at 33% and 32% respectively. The least stemmed from small law firms. That's likely because smaller firms are typically more cautious than larger firms, often lack the investment capabilities to onboard legal tech, and don't possess the same appetite for risk.

And, as shown in our report, the legal sector clearly understands the risks. In this article, we explore the report and examine how small law firms can onboard safe, secure, reliable, and accurate AI tools, claiming the myriad of benefits and drastically minimising the acknowledged risks.

The risks of generative AI for small firms

Small law firms stand to benefit the most from generative AI. Their processes can feel sluggish and inefficient, lacking the benefit of innovation. Admin and comms are often non-standardised, due to the absence of automation, and they're typically not able to invest massive sums in the latest legal tech. Generative AI can quickly streamline or automate small law firm processes, ranging from contract drafting and management, internal and external chatbots, predictive analysis to improve risk assessment and due diligence, and enabling much more efficient legal research. Small law firms aren't as far along their digital journey as medium and large law firms, and AI can expedite their ability to catch up.

The benefits of AI for small law firms are pronounced, and so are the risks. According to our recent report, 57% of respondents mentioned concerns about hallucinations, 55% noted security issues, and 55% mentioned a more general lack of trust. Indeed, only 10% of respondents said they had no concerns.

But the concerns seemed aimed at particular AI platforms, not AI itself. Two-thirds (65%) of respondents felt confident using a trusted AI-powered tool grounded on legal research and guidance content. In fact, 61% of small law firms and solo practitioners said they felt comfortable using systems like these.

That shows the risks are associated with opaque platforms, the sort that are trained on outdated and unreliable inputs, that lack human oversight. Such platforms are often free-of-charge, available at the click of a button, and profoundly risky.

That's one reason small firms face higher risk. They may struggle to afford the more trustworthy and trusted platforms, opting for free, generative AI solutions. It's become almost an adage, one repeated by everyone involved in generative AI, but AI solutions are only as good as the data on which they are trained. Quality outputs depend on quality inputs. Therefore, the free solutions, which ultimately appeal to those with less investment capability, tend to present more risk.

Another reason small firms face higher risk is the nature of their operations. Larger firms and businesses have dedicated tech or IT teams, people involved in trialling and safely integrating legal tech. They may also have teams involved in evaluating risk or dedicated entirely to due dilligence. The above capabilities, married with the financial means to afford more trusted tech, allow larger firms to mitigate risk from the beginning. These are luxuries that many small law firms simply cannot afford.

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How small firms can utilise generative AI

The risks, as we've seen, are down to the platform, not the tech. Firms that fail to use the tech will suffer competitive disadvantage and will struggle to compete in the field. As Chris Tart-Roberts, Chief Knowledge and Innovation Officer at , says in our report: "AI is shaping the legal industry and no business or industry can afford to ignore it given its transformative potential." 

Small law firms can overcome these by choosing the best platform. AI-powered tools from responsible companies that boast human oversight, awareness of real-world impacts, and accurate outputs and ultimately minimises risks. Plenty of legal tech platforms offering AI-powered options are cost-effective, especially once you factor in the drastic cost-reduction capabilities of AI.

Take Lexis+ AI. The largest repository of accurate and exclusive legal content has been used to train Lexis+ AI. The legal tech combines the power of generative AI with proprietary ½Û×ÓÊÓƵ search technology and authoritative content. That means that the outputs are always verifiable, citable, and from a reputable source, which significantly reduces all the above mentioned risks.

Download our report, Lawyers cross into the new era of generative AI, and explore our insights today!