A guide on how to leverage AI for the future of your legal practice

For legal practices, introducing another piece of technology does not automatically create greater efficiency. The real opportunity lies in identifying where AI can complement the expertise of legal professionals, remove unnecessary administrative work and help firms provide a better service to their clients.

But firstly, what is AI in legal practice management?

AI in legal practice management is the use of artificial intelligence on the operational side of a law firm, covering client intake, matter management, time recording, billing, legal accounts and compliance, rather than only on legal research and drafting.

Three types of AI sit under that definition:

• Rules-based AI and machine learning classify, match and detect patterns in structured data. They flag an unusual client account posting, for example, or suggest the right matter code for an incoming document.
• Generative AI produces language. It summarises a matter file, drafts a first-pass client letter or compares two versions of a lease, with the fee-earner checking and approving the result.
• Agentic AI carries out multi-step workflows with human sign-off at each stage. It is covered in more detail in the agentic AI section below.

Practice management AI works on the firm's own matter, time and financial data. A research tool needs access to case law. In contrast, a practice management tool needs access to the matter record, the time ledger, and the client account, making where the AI sits, and who controls the data, as much a compliance decision as a technology one. Applied properly, AI is a capability that spans intake to bill rather than a single tool bolted onto one stage of the process. For the wider strategic picture, see this overview of how AI is changing law firms.

So, what should legal practices be thinking about as they look to make greater use of AI in 2027?

Start with the problem, not the technology

With so much attention surrounding generative AI and legal AI tools, where can law firms actually use the technology to work more effectively?

Start by considering the processes that take up significant amounts of time across your practice. Are legal professionals spending hours searching for information across different systems? Are teams repeatedly drafting similar documents? Is client onboarding unnecessarily administrative? Could lawyers be spending less time recording activity and more time focusing on client work?

Starting with these challenges makes it easier to identify where AI and legal workflow automation could genuinely make a difference. This audit acts as your strategic foundation, helping your firm avoid choosing point solutions that become disconnected from one another or adopting technology simply because it is new, rather than because it addresses a defined business problem.

2. Look for opportunities to reduce repetitive work

One of the clearest opportunities for AI in legal practice is its ability to support routine, repetitive and time-consuming tasks. Depending on the technology being used, this could include summarising lengthy documents, identifying key information, supporting legal drafting, assisting with document review or making it easier to retrieve information from a firm's knowledge base.

Quality management processes can benefit too. Rather than relying entirely on time-consuming manual checks, AI can help firms identify information that requires attention and give professionals greater visibility across matters. For example, IQ’s File Quality Review and Matter Quality Agents are designed to support more efficient and consistent quality reviews, helping firms use AI within real legal workflows rather than treating it as a standalone tool.

When used effectively, automation can give lawyers and support teams more time to focus on work where their judgement, experience and client relationships add the greatest value.

3. Think about how AI can improve the client experience

The potential benefits of AI are not limited to internal productivity. There is also an opportunity to rethink how technology can support the client experience.

Clients increasingly expect professional services to be convenient, responsive and transparent. With the right governance guardrails in place, AI could help firms respond to routine enquiries more efficiently, provide clearer updates on matters and reduce delays caused by administrative processes. It could also help legal professionals access relevant information quickly, giving them a more complete view of a client or matter when they need it.

However, efficiency should not come at the expense of human relationships; legal matters are often complex, sensitive and highly personal; therefore, the application of these tools should be to support legal professionals behind the scenes. These tools should be embedded in the flow of their work to enable them to devote more attention to the conversations and decisions that matter to their clients.

4. Keep people involved in the process

As AI tools become more capable, human oversight will remain essential. Generative AI can produce convincing responses that are incomplete, inaccurate or based on incorrect information. In a legal environment, where accuracy and professional judgement are critical, firms need clear processes for reviewing AI-generated work before it is relied upon. That means thinking carefully about where AI can assist and where a qualified professional needs to make the final decision.

Training will play an important role here. Legal professionals need more than an introduction to individual AI tools; they need to understand their limitations, how to question their outputs and when additional scrutiny is required. Building AI literacy across firms can help teams use the technology confidently without becoming overly reliant on it or exposing practice to potential risk.

5. Make responsible AI part of your strategy

The increasing use of AI also introduces important questions around governance, security, confidentiality and compliance.

Before adopting an AI solution, firms should understand what information it uses, where that information is stored and how it is protected. Entering sensitive client or matter information into an unsuitable public AI tool, for example, could create risks that outweigh any productivity benefits. Creating a clear AI policy can help establish boundaries around how employees use the technology. Firms should consider which tools are approved, what information can be shared with them, when human review is required and who is responsible for overseeing AI use.

Cybersecurity therefore needs to form part of the AI conversation from the outset. For a deeper look at the security challenges facing the sector, read our recent article by Simon Riggs, our Chief Information Security Officer: ‘world-class cybersecurity for UK law firms and why it's more important than ever’.

Responsible AI governance should not be viewed purely as a restriction. Clear rules can give employees greater confidence to explore the technology because they understand where and how it can be used safely.

6. Build AI into a connected technology strategy

AI is unlikely to deliver its greatest value when it operates in isolation. If the existing date and information you’re feeding it, is spread across disconnected systems, stored inconsistently or difficult to access, even the most sophisticated AI tools may struggle to produce truly useful results. Firms should therefore consider AI as part of their wider legal technology strategy rather than as a standalone project, it should be a key consideration in every board meeting and on the remit for every legal leader.

Connected practice management, document management, financial and client information can create stronger foundations for automation and intelligent tools. Good-quality, accessible data can also make it easier for firms to identify patterns, improve decision-making and understand how effectively the practice is performing.
This is where taking a more connected approach to legal technology becomes increasingly important. Explore IQ for Legal to see how OneAdvanced is bringing practice management and AI-powered capabilities together to support the changing needs of law firms.

7. Measure whether AI is actually delivering value

Finally, firms should be clear about what successful AI adoption looks like in their firm from the outset.

That does not necessarily mean measuring how many AI tools have been introduced or how frequently employees use them. Instead, focus on business and client outcomes. Has a new workflow reduced the time spent on administration? Can lawyers find information more quickly? Has the firm reduced the time required to open a new matter? Are clients receiving faster responses? Has technology created more capacity for valuable legal work?

Establishing measures before introducing AI can make it easier to understand its impact and decide where further investment makes sense.

Preparing your legal practice for an AI-enabled future

The firms that make the most of AI are unlikely to be those that simply adopt the greatest number of tools. The bigger opportunity is to strategically understand where AI fits within the way the practice already works, and where it can make that work better.

That means beginning with genuine business challenges, building the right technology and data foundations, establishing appropriate governance and giving your people the skills to use AI responsibly and productively.

AI may be changing how legal work is delivered, but its greatest value comes when technology and human expertise work together. For legal practices, right now you are being presented with the opportunity not just to adopt AI, but to really understand how it can make a tangible impact to your practice, how it can drive more efficient ways of working, connect your teams and processes, build stronger client experiences and enable your practice to be better prepared for what comes next.

Ready to explore what AI could mean for your legal practice? Discover how IQ for Legal can help your firm bring together connected legal technology and intelligent tools to create more efficient ways of working. Or contact our team to discuss your firm's priorities and how you can start building AI into your legal technology strategy.

Frequently asked questions

How can law firms use AI in 2027?

Law firms can use AI to support a growing range of legal and administrative tasks, including document review, drafting, legal research, knowledge management, client onboarding and workflow automation. The most effective approach is to identify specific areas where AI can reduce repetitive work or improve access to information, rather than adopting technology without a clear business need.

What are the benefits of AI for law firms?

AI can help law firms improve efficiency, reduce time spent on routine administrative tasks and give legal professionals more time to focus on higher-value client work. When implemented effectively, it can also support faster access to information, more consistent processes, better decision-making and an improved client experience.

What legal tasks can AI automate?

Depending on the technology and use case, AI can assist with tasks such as summarising documents, reviewing and extracting information, supporting legal drafting, searching knowledge bases and automating elements of matter management, time recording and client onboarding. Human oversight remains important, particularly where accuracy, legal judgement or sensitive client information is involved.

How can a law firm implement AI responsibly?

Responsible AI adoption starts with clear governance. Firms should understand how AI tools process and protect information, establish which technologies employees are permitted to use and define when human review is required. Providing employees with appropriate AI training and maintaining strong data security and confidentiality practices should also form part of an effective AI strategy.

How should law firms prepare for greater AI adoption?

Law firms should consider whether their existing technology, data and processes provide the right foundations for AI. Connected systems, accessible and reliable data, clear workflows and appropriate governance can all help firms get more value from AI. Rather than viewing AI as a standalone technology project, firms should consider how it fits into their wider legal technology and business strategy.