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AI in the Legal Industry: How will AI affect lawyers?

Innovations in AI and large language models (LLMs) have brought about significant changes in the legal industry. The introduction of no-code tools and AI-powered solutions has revolutionised the way legal professionals work, leading to the emergence of new roles and the redefinition of existing ones.
To stay at the forefront of the industry, law firms and legal teams must embrace technology and adapt their practices accordingly. It’s not enough to simply adopt new tools and software; organizations must also be willing to change their internal structures and roles. By doing so, firms can leverage rapidly developing AI technology to deliver a differentiated service and maintain a competitive edge.
How AI is changing roles in law and legal practice
Artificial intelligence is reshaping what legal work looks like day to day. As routine, repeatable tasks shift to automated tools, the role of the legal professional is moving toward higher-value work that draws on judgment, strategy, and client relationships. The shifts below outline the most significant ways these roles are evolving.
Lawyers will focus on higher-value, strategic work
As AI takes on more and more routine tasks, legal professionals’ efforts will shift to work that requires critical thinking skills, problem-solving, and domain expertise. As a result, legal departments will become more active in contributing to decision-making, helping shape strategy, and ensuring that legal and ethical considerations are integrated into the fabric of the organization’s operations. Lawyers will increasingly focus on developing case strategy, crafting compelling legal arguments, and providing tailored advice by combining their legal expertise with AI-generated insights. Creativity and persuasion will be key human skills that AI can augment but not replicate.
“With an investment in more sophisticated learning tools that leverage AI, the pace at which people are able to progress in contributing and adding value could be sharply accelerated.”
Kim Wolfe
Managing Director
Head of Legal Business Solutions, Wells Fargo
Continuous learning and new skills become essential
Legal professionals’ unique expertise, ethical judgment, and strategic decision-making remain irreplaceable, with AI serving to enhance efficiency and accuracy in legal tasks without substituting their fundamental roles. But they must embrace continuous learning and develop new skills like data literacy and digital fluency to navigate the evolving landscape shaped by AI.
Maintaining oversight, ethics, and accountability
They will also need to adopt new collaborative methods with AI and focus on critical oversight functions such as ensuring ethics, eliminating bias, and maintaining accountability.
Additional Ethical and Regulatory Guidelines Are Coming
The rapid development of AI has led to concerns about data quality and ethical issues, including biases and the reliability of AI models, which affects not only the legal industry but many others as well. While nearly half of UK lawyers believe the legal profession should regulate its use of AI, others look to government intervention, as seen in the US government’s efforts to establish AI guidelines and the California Bar’s new guidelines for lawyers using AI. Anticipate further ethical and regulatory frameworks to be developed by state governments and professional organizations to address these challenges.
“I think this new fascination with AI stems from the fact that lawyers live in words. This is nota ones and zeros conversation anymore, it’s natural language. Lawyers can have this conversation with the technology. But without proper education and governance around its use, you are exposing yourself to risk.“
Joy Heath Rush
Chief Executive Officer
International Legal Technology Association
How AI impacts legal clients?
AI is reshaping the client experience as much as the practitioner’s workflow. As firms automate routine research, document review, and drafting, clients benefit from faster turnaround, lower costs, and more predictable pricing. Matters that once consumed billable hours can be resolved in a fraction of the time, freeing lawyers to concentrate on the strategic counsel clients value most.
This shift also brings greater transparency and access. AI-powered tools can surface relevant precedent, flag risks earlier, and support data-driven decisions, giving clients clearer insight into their legal position. At the same time, expectations are rising — clients increasingly seek out firms that use technology to deliver better outcomes at lower cost, making AI fluency a key differentiator when choosing a legal partner.
Understanding the Evolution of the Law Firm Business Model
The traditional billable hour in the legal industry is being redefined by AI, which streamlines time-consuming tasks and allows lawyers to devote more time to complex, expertise-driven activities, such as strategy and client engagement, and enhancing the value they provide. The potential for AI to enable new services suggests a future where legal professionals can generate value and revenue in innovative ways.
I think the future will be similar to what we saw when digital legal research tools were introduced. The role of the law librarian changed, but the cost of legal research didn’t go away; it instead shifted from people to technology. And it didn’t result in less time being billed, but rather a reallocation of that time to more strategic work and greater profitability for the legal organisation.
“Generative AI has flipped the script – in the past, lawyers were reluctant to take time away from billable activity to try new things, but now they are proactively asking their employers. This about-face is not surprising when you consider the fundamental changes AI could bring about – factoring the firm’s whole base of knowledge in when drafting documents.“
Jae Um
Founder & Executive Director
SixParsecs
More recently, a 2025 industry report found that 90% of legal professionals expect generative AI to reshape billing practices within the next two years, as firms explore alternative billing methods to align with client expectations and maintain profitability. This remains to be seen, but proactive research into these alternatives can prepare firms for a smooth transition to AI-enhanced operations.
Adapting to AI in Law and Legal Practices
Firms don’t need to overhaul everything at once. A few practical steps can help legal teams adapt to AI and stay competitive:
- Invest in training and upskilling so lawyers and staff build data literacy, digital fluency, and confidence working alongside AI.
- Establish clear AI governance and usage policies, including risk frameworks and verification standards for AI-generated work.
- Start with low-risk, high-volume use cases such as legal research, document review, and first-draft generation.
- Choose secure, legal-specific AI tools that protect client confidentiality and meet ethical obligations.
- Rethink pricing and business models, exploring alternative fee arrangements as AI reshapes the billable hour.
- Maintain human oversight and accountability, keeping lawyers responsible for reviewing and validating AI outputs.
Staying ahead of AI revolution in legal
The successful firms of the future will be those that can adapt to changing technologies and embrace the possibilities offered by AI. By introducing and evolving roles within their organisation, these firms will be able to fully utilise the potential of AI and stay ahead of the curve. The legal industry is undergoing a transformation, and those who can adapt and embrace the changes will thrive in this new era of legal practice.
Ready to put AI to work in your practice? Explore NetDocuments Legal Context Graph to see how our AI capabilities can help your team work smarter — or book a demo to learn more.
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