2024 Bright Insight

04

TECHNOLOGY & THE FUTURE

• Law firms are significantly ramping up their investment in AI , with 71% of them planning to increase AI spending in future years. This shift is anticipated to elevate technology spending from 5.3% to 7.3% of total revenue by 2025, indicating a commitment to leveraging the technology to remain competitive. • A majority of law firms are currently incorporating, or plan to incorporate, AI across various functions in their firms with legal research being its most frequently cited application. • The impact of AI on the legal industry is impossible to predict as this time and won’t reveal itself in the near term. However, potential impact scenarios range from significant enhancement in client value (i.e., more services at the same fee levels) and firm profits to a possible reduction in traditional law firm positions. Law firms must prepare for shifts in client demands, recruitment and retention challenges, increased global competition and evolving fee structures driven by rapid technological advancements.

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