Why data will define the AI-ready law firm

The MOJ Action Plan

How law firms use AI has recently been brought into focus by the Ministry of Justice. This summer, the MOJ published its AI Action Plan, which outlined how the department and the justice system in general can harness this modern technology. The aim? To transform the public’s experience of the justice system and make these interactions simpler, faster and more tailored to their needs, with this built around three key strategic priorities; to strengthen foundations (and thereby enhance AI leadership, governance and ethics frameworks), embed AI throughout the justice system and drive investment in people and partners. 

The MOJ AI Action Plan does an excellent job at demystifying AI. They’ve clearly tried to demonstrate real transparency in their approach and have explained the objectives of the plan in a manner that is easy to understand. Crucially, the plan places a strong emphasis on good-quality data, ethical governance and keeping humans involved in every stage of decision-making, putting definite guardrails on data quality with “a set of targeted data initiatives to improve quality, governance, interoperability and infrastructure.” The success of AI hinges on the data fed into these programs, with output directly affected by the quality of the data it works with. This shows a measured approach from the MOJ, with the emphasis on law firms to pay attention to their data while recognising that AI is a lot of things – but it isn’t a silver bullet. 

A moment of realisation

Fortunately, I see a lot of evidence that the penny has dropped in the industry. People are understanding what AI means for them and, with that, they are recognising the importance of data. In a way, I liken this generational shift to the Industrial Revolution. In the same way that the lightbulb was first invented to improve ways of working during a crucial time in our history, AI is being used to improve and enable the next steps for better workflows in our future. 

The legal industry and law firms of all sizes are beginning to recognise what AI will realistically mean for their organisation, they’re identifying the most frequent jobs that AI will really bring value to, and underpinning what is needed from a data perspective. I’m seeing this first-hand with the work we do to help law firms get to grips with what AI applications their businesses (and fundamentally their clients) can benefit from.

Law firms of all sizes are identifying where AI can deliver the greatest value, typically in high-frequency, repeatable tasks, and realising that success depends on strong data foundations. In our work with firms, we regularly host customer advisory boards (CABs) and deep dive sessions to help them map everyday processes, pinpoint pain points, and uncover opportunities for AI to make a tangible difference. It is detailed, sometimes painstaking work, but it is essential to turn AI from an idea into a practical advantage.

Getting the data right is critical. Larger firms, in particular, face complex challenges with vast client histories and legacy systems, often holding inconsistent or outdated information. The quality, accuracy and credibility of that data must be assured before AI can be trusted to act on it.

The risks of neglecting this are clear. For example, a little while ago, I attended a legal event where there was a candid discussion of case law being used to train an AI solution; however, case law that would have been suitable decades ago had to be ‘black boxed’ for modern-day use, as similar cases would be handled very differently in the context of the modern day. This serves as a reminder that human oversight is irreplaceable — AI can accelerate legal work, but only humans can provide the judgment and context that ensure fairness and trust.

Getting to grips with AI

Given the amount of work required within a law firm to make the most of AI, it’s best to get started on reviewing internal data and how this is managed. There’s a lot of enthusiasm around AI, but the important work starts under the bonnet.

This can include identifying and managing any challenges law firms face - reliance on legacy systems, a lack of data standard consistency, or poor and incomplete records. For instance, if a law firm has on-premise applications, then this can make it quite difficult to get the data out. If these interfaces can only be logged into via the on-premise application, then this can directly impact how accessible and therefore usable the data is.

Tackling data can be an expansive and potentially intimidating task for some law firms. Fortunately, there are some simple ways to get started. We created the OneAdvanced AI Intelligent Chat, the UK’s first private AI solution created with privacy, security and trust in mind, built on the OneAdvanced platform. OneAdvanced AI Intelligent Chat and Agents offers a range of features that enhance productivity, innovation and task handling so users can benefit from efficiency gains while still getting to grips with the data in their firm.

Additionally, many law firms will already be using applications with great API functionality. These can be explored and better used to allow firms to easily and securely share data, strengthening connectivity and helping overcome silo issues that would act as a hurdle for any AI integration. However, it’s crucial to consider what external data sources a law firm uses and where a chosen search provider looks for information. 

How data could become the competitive differentiator 

The MOJ’s Action Plan has brought into focus the need for law firms to prepare. There is now a greater appreciation of what AI can practically mean for law firms and – crucially – what they need to do to make this happen. 

A few years ago, when the buzz around generative AI really began, some of the largest law firms focused heavily on building their own solutions. It was perceived as a big investment that only those with the deepest pockets could achieve, and became a way to show prowess.

However, the initially expensive entry price point of AI solutions has since come down through economies of scale, making these solutions more cost-efficient to run, meaning AI solutions can become one of the greatest equalisers in the legal industry if used correctly. Provided people are given access to training and education, there is now no reason why smaller law firms can’t implement it just as efficiently. To be candid, they may even benefit from the ability to be nimbler and more adaptable than some of the bigger firms. 

What’s next?

Many law firms are already engaging in proactive discussions about their organisational strategies, assessing their readiness for AI, and recognising that data quality and structure must come first. Understanding where you are today and what foundations need to be strengthened is the essential first step toward leveraging the full potential of intelligent technology.

The Ministry of Justice’s AI Action Plan provides welcome direction for the sector, setting out a clear ambition to strengthen the foundations for AI, embed innovation across the justice system, and invest in people and partners. Crucially, it reinforces the principle that “AI should support, not substitute, human judgement.” The goal is not to replace lawyers, but to empower them by reducing backlogs, enhancing efficiency, and improving access to justice across the system.

For law firms, the opportunity is immediate. AI will continue to reshape the profession, but its success depends on the strength of the data beneath it. Firms that take control of their data today, ensuring it is accurate, connected, and usable, will be the ones best placed to innovate, build client trust, and lead in this new era of digital practice.

AI may define the future of law, but data is the foundation that will determine who thrives in it.