Global Report on the State
of Artificial Intelligence in Legal Practice
Insights from the 2023 AI in Law Firms Survey and Leading Experts
The 1st Global Report on the State of AI in Legal Practice presents the key findings from the „AI in Law Firms 2023” survey, enriched with insights from leading experts in AI and Law, Legal Informatics, and the Law of AI.
Created by a diverse team of experts, this report is completely independent and was developed in partnership with the Liquid Legal Institute. Just click the button on the right to download your copy.
Due to the positive feedback we have received, we are pleased to announce that we have launched our next survey for 2024. Keep reading to learn more.
Join the 2nd Global Survey on AI in Legal Practice
We invite you to be a part of our research on the use of Artificial Intelligence in law firms and in-house legal departments. By participating in this anonymous survey, you will contribute valuable insights that will help shape the future of AI in the legal field.
This independent study is conducted by a team of experienced researchers from respected universities: Michal Jackowski (SWPS University), Michal Araszkiewicz (Jagiellonian University), Maria Dymitruk (Wroclaw University), and Gijs van Dijck (Maastricht University).
Why Participate?
- Contribute to Global Research:
Your input will directly influence the 2nd Global Report on the State of Artificial Intelligence in Legal Practice.
- Stay Ahead:
Gain early access to key trends and findings that can help you stay ahead in the rapidly evolving landscape of AI in law.
- Support the Legal Community:
Your participation will help legal professionals worldwide better understand and harness AI technologies.
The survey is completely anonymous and will take just a few minutes of your time. Join us in this important initiative and help us pave the way for the future of legal practice.
Thank you for your contribution to this important research!
Key Findings from the 1st Survey
To assess the current impact of AI on legal practices, a global survey was conducted across over 200 law firms, representing nearly 100,000 legal professionals. The objective was to gather insights on the rapid expansion of AI, focusing on the utilization of AI tools, associated concerns, perceived limitations, and identified opportunities. The key findings and opinions include:
- Generative AI is anticipated to transform the legal industry within the next three years significantly.
- Approximately 40% of legal tasks are anticipated to be performed using AI in the coming years.
- Adoption of AI by law firms is projected to generate substantial additional value, positioning these entities as market leaders.
- Knowledge of AI and the capacity to manage AI-driven projects are poised to become key assets for lawyers in the job market.
- Quick adoption of is a sign of the legal industry’s agility in embracing new technologies to stay competitive and innovative.
According to our respondents, law firms are facing increasing pressure to enhance their efficiency, prompting a closer look into the potential of generative AI technology. Our research indicates that:
- Approximately 38% of tasks within law firms, characterized by their repetitive nature, can be effectively automated through AI. These are primarily legal research, document review, and contract generation.
- The generative AI revolution has completely changed this market. 60% of companies have been using AI for less than a year – an obvious impact of this technology on the development of innovation in the legal world.
- 3.51% of law firms have already implemented AI. The majority in the US. Most are the largest firms (+100 lawyers) and the smallest (1-10 lawyers).
- The largest number of AI tools deployed are tools for automating document processing and legal research. However, there is a lack of dominant technology here – companies are still looking for the best solutions and are far from it. The market is still immature.
- 1/3 of law firms intend to partner with technology companies and invest in AI R&D.
- Law firms vary in their approach to AI – most are implementing the technology very cautiously, preceding pilots and ensuring that the technology is preapproved. However, nearly half of law firms are allowing AI to be used from the bottom up, taking advantage of the fact that lawyers with AI are many Times more effective than without AI.
- If the tools were accurate and secure the average company would implement 5-6 AI-based tools. The most preferred AI systems were a document generator (84.2%), a document summarization tool (69.5%), a jurisprudence analysis tool (63.5%), and a compliance and risk management system (59.1%).
- Lawyers are very open to implementing AI in the organization. 68.5% of companies marked 4 or 5 on a scale of 1-5, 12.8% of companies declared 1 or 2, and 18.7% of companies declared 3.
- Lawyers are not worried that AI will cause massive job losses. Only 11.4% of those asked are concerned about a significant change in the labor market. Lawyers are convinced that AI will significantly change the way work is done.
- 53% believe that AI tools will become an essential part of workflows and paralegals’ tasks will be automated. 38% believe that lawyers who specialize in AI will have a better chance of finding work and advancing their careers.
- Law firms are maturing to allow AI to occupy an increasingly important role in the organization. 43% have created AI-innovation units, and 13% employ AI engineers or prompt engineers.
- Key challenges to AI adoption are legal issues (legal liability and regulation – 80.2%), privacy and security of the technology (66.8%), and accuracy and reliability of artificial intelligence (63.9%). More than half of respondents answered that it is necessary to develop internal policies and guidelines for the use of artificial intelligence (61.7%). 52% expect additional education and training, and 42% require improved security and privacy/data protection in the artificial intelligence sphere.
A picture of the law firm market
In 2023, law firms encountered numerous challenges:
- Wage increases below the inflation rate.
- A decrease in the efficiency of the lawyer’s work, which, combined with the billable hours model, results in a decrease in revenue for companies.
- A sharp, higher-than-inflationary increase in the cost of employees and other costs of doing business.
- Adverse customer reaction to continued price increases and the search for efficient billing models.
In 2024, firms must address these challenges effectively to compete in a technologically advanced legal services market. The use of generative AI is one among many of the solutions they see.
The Editors
Michał Jackowski
mjackowski@swps.edu.plMichal Jackowski, professor of constitutional law, Ph.D at the Wrocław University, attorney-at-law and tax advisor, co-founder of DSK Law Firm, one of Po land’s largest tech law firms, co-founder of AnyLawyer, a start-up implementing generative AI in legal firms and large organizations, member of International Association for Artificial Intelligence and Law and ITechLaw.
Michał Araszkiewicz
michal.araszkiewicz@uj.edu.plMichal Araszkiewicz, PhD in legal theory, assistant professor at the Department of Legal Theory at Jagiellonian University in Kraków, attorney-at-law, co-founder of the ACR Legal law firm, member of the Steering Committee of the District Bar Council in Kraków, author of over 100 scientific publications, Secretary-Treasurer of International Association for Artificial Intelligence and Law and Vice-president of the JURIX Foundation.
Expert Commentary by
- Federico Costantini
- Gijs van Dijck
- Martin Ebers
- Enrico Francesconi
- Saptarshi Ghosh
- Jakub Harašta
- Marc Lauritsen
- Tomer Libal
- Juliano Maranhão
- Masha Medvedeva
- Ugo Pagallo
- Ken Satoh
- Burkhard Schäfer
- Jaromír Savelka
- Minghui Xiong
- Xiao Chi
- Vern R. Walker
- Bernhard Waltl
- John Zeleznikow
- Tomasz Żurek
Would you like to learn more about our research, read expert commentary and view detailed data on lawyers’ readiness to use AI in their daily work? Download our report!
Would you like to participate in the 2024 survey on the state of AI in Legal Practice? Click here to join.
Would you like to contribute an expert commentary? Write to us