According to The Law Society there is a striking disparity in AI adoption across the UK legal sector. Approximately 75% of the largest law firms are already using AI as part of their daily operations, while only 30% of small law firms are even exploring the technology. Do smaller practices risk falling behind as AI becomes increasingly embedded in legal work?
Despite the clear benefits and increasing accessibility of AI, many small law firms are hesitant to take the first step. This reluctance is driven by several factors: lawyers are busy on the ‘day job’ of client work; we are naturally risk-averse, and AI comes with compliance issues that need to be researched and understood so that every firm can decide what their policy on it will be. Firms should be rightly cautious about what happens to client data and how to address ethical questions if they adopt AI.
There’s also a real fear that AI could disrupt established routines or even threaten jobs within our practices. The combined complexity of researching, deciding on, and rolling out new technology can make AI feel like “not today’s problem”. Large firms have bigger teams to address those issues faster.
Underpinning all these worries is also what behavioural economists call “pessimism aversion”, which is the tendency to avoid decisions that carry any risk of negative outcomes, even where the potential rewards are significant. We are being warned that AI will involve loss of human control or job losses. At the end October 2025, Amazon announced that it is cutting 4% of its workforce because of AI. Microsoft has already laid off 6.6% of its global workforce with 30% of Microsoft’s code now being written by AI. While the legal profession often comes under attack for not adopting change, this change isn’t just iterative, it’s substantial, and the effect of pessimism aversion is understandable.
Having said that, smaller firms risk missing out on efficiency gains and competitive advantages by not adopting AI, which is unfortunate, as driving efficiency and profit leads to survival and growth.
So what’s the way forward?
1. Lawyers aren’t techies – and that’s ok
The reality is you don’t need to become a techie to make use of AI within your teams. In the same way that we are all using AI in life outside work (think of the algorithms in Netflix, YouTube, Instagram and Spotify or the suggested products on Amazon), legal teams are already using AI without necessarily realising it – by using the “smart” features in your case management software, or tools like Legalito.
You don’t need to code or understand the inner workings of AI. Your job is to make sure you’re using products and software that build and use AI responsibly. Choose trusted, legal-specific tools that integrate with your existing systems, processes and procedures. According to LexisNexis, 88% of lawyers feel more confident using AI tools designed for the legal sector. Audit your current tech and identify where AI is already in use.
2. Show your teams – and train them
Of the biggest UK firms that are investing heavily in AI training, 55% of the top 20 now offer formal AI training. For small firms, start small: run sessions on the basics, share practical examples with each other in whatever way works best for you, and encourage questions. The goal isn’t to turn everyone into an AI expert, but to build confidence and awareness.
3. Consider your AI policy
Every law firm needs an AI policy, even if you’re just starting out. The SRA’s Code of Conduct requires firms to have appropriate governance, systems, and controls in place for technology use, including AI. A good policy covers confidentiality, ethical use, data security, and the need for human oversight. If you don’t have one, our ready-to-buy AI Policy is available on our website and is designed specifically for small law firms. It’s practical, clear, and keeps you compliant. You will need to tailor it to your practice (as with all precedents), but it is a great starting point. Without an AI policy in place, you risk data breaches, ethical pitfalls, and reputational damage.
4. Start small, measure the impact, and scale up as confidence grows
Adopting AI does not require a wholesale transformation overnight. The most successful small firms begin with a single, manageable use case, such as automating document review, streamlining client intake, or using AI-powered research tools. Choose one area where your team feels the pain of repetitive or time-consuming tasks, and pilot an AI solution there. Set clear objectives for what you want to achieve, such as reducing turnaround times or improving accuracy.
Once implemented, measure the impact. Gather feedback from your team, track efficiency gains, and assess any risks or challenges that arise. Use these insights to refine your approach and build confidence within your practice. As your team becomes more comfortable, you can gradually expand AI adoption to other areas, always ensuring that new tools align with your firm’s values, compliance obligations, and client needs. This incremental approach reduces risk, builds internal buy-in, and ensures that AI becomes a practical asset rather than a source of anxiety.
This incremental approach is also in line with SRA expectations: ensuring proper supervision, maintaining accountability, and regularly reviewing your governance frameworks as you scale up your use of technology.
Conclusion
AI is clearly not a distant threat or a passing trend. It is already reshaping the legal sector. While the pace of change can feel daunting, especially for smaller practices,: firms that embrace AI thoughtfully are seeing real benefits in productivity, client satisfaction, and even staff well-being. The gap between large and small firms is widening, but it is not insurmountable.
By taking practical steps – auditing your current technology, training your teams, implementing a clear AI policy, and starting small – you can harness AI’s advantages while managing the risks.
Ultimately, the question is not whether AI will change legal practice, but how you will respond. Small firms that act now will be able to offer their clients the best of both worlds – a personal touch, powered by the efficiency of modern technology.
Sarah Keegan, CS Partnership
