Is AI finally going to take our jobs? Meeting client AI/technological demands while supporting junior lawyers' development

Friday 29 November 2024

Stefan Nigam
Transperfect Legal, London

Al-Karim Makhani
Transperfect Legal, London

Reuben Miller
Transperfect Legal, London

Imagine a world where legal tasks that typically take hours — like document review, contract drafting and legal research — are completed in minutes using advanced technology.

This isn’t a futuristic dream; it’s the reality that artificial intelligence (AI) is bringing to law firms today. AI, particularly generative AI, has the power to reshape the legal industry by automating repetitive tasks; improving accuracy; and allowing lawyers to focus on higher-value, strategic work. The potential is immense: firms can reduce costs; increase efficiency; and deliver better value to clients – all while driving firm profitability.

But what does this shift mean for the largest employment sector for lawyers – firms themselves? And in particular, what does it mean for dispute resolution departments, where junior tasks from document review to bundling make up a substantial proportion of billable hours? How will the roles of junior lawyers evolve as AI takes over many foundational tasks? How can firms maintain and even increase profitability while ensuring the next generation of lawyers continues to develop critical skills?

Corporate clients are already expecting — and will soon be demanding — that law firms adopt generative AI in their work. Budget cuts are a common challenge for general counsel in the United Kingdom, with an average reduction of 12 per cent in the last year,[1] while around 60 per cent of corporate counsel globally are expecting law firms to incorporate these tools.[2]

Law firms now face a dual challenge: adopting AI to meet client expectations while ensuring junior lawyers are trained and equipped to thrive in an AI-enhanced legal landscape.

Impact on junior lawyer development and the shift in roles

AI is rapidly transforming the tasks that junior lawyers have traditionally performed. Goldman Sachs predicts that up to 44 per cent of legal work tasks could soon be automated.[3] Research shows that the tasks automated first are often the most straightforward, usually handled by junior team members. Law is no exception. This increased speed and efficiency can benefit law firms and increase client satisfaction, but it raises a crucial question: if AI automates this, how will junior lawyers develop their legal skills?

The truth is that many repetitive tasks aren’t critical to developing good lawyers. After all, the introduction of spell check didn’t prevent lawyers from spotting typos. Likewise, repetitive tasks with technology will develop better and, importantly, happier lawyers. It is not just a question of filling 16 hours a day but increasing both output and satisfaction while reducing the need for the famed (but likely unproductive) all-nighters.

As AI takes over routine work, junior lawyers will have the opportunity to focus on higher-value activities such as client interactions, case strategy, advocacy and business development. Rather than spending years on repetitive, lower-value tasks, junior lawyers can now focus on strategic capabilities, enhancing their value to the firm. This includes developing critical skills for the future of the profession, such as prompt engineering – crafting precise inputs for AI – and integrating technology into traditional workflows.

By mastering these skills, they will play a pivotal role in implementing AI-assisted processes, ensuring outputs are legally sound, contextually relevant and valuable to clients. This shift also raises an important question: as lawyers move from time-based tasks to results-driven contributions, how will they be rewarded for the value they deliver?

The shift in junior lawyers' roles isn't just about adapting to new technologies; it's about leveraging the opportunity AI presents to foster long-term career growth. Law firms must consider how AI can facilitate junior lawyers’ contributions to the firm’s strategic direction earlier in their careers.

Limitations of AI and the role of junior lawyers

While AI offers significant advantages in terms of efficiency, it comes with limitations, particularly in nuance, context and accuracy. AI-generated outputs, especially from large language models, can sometimes be inaccurate, biased or lack the depth needed for complex legal matters. In many cases, it’s not appropriate or responsible to use the tool. The starkest example is when ChatGPT fabricated cases to support counsel’s submissions.[4] This shifts the role of junior lawyers from routine tasks to providing the human oversight essential to AI processes.

It is crucial for junior lawyers to be well-versed in monitoring AI, ethical frameworks and conducting quality checks. AI’s outputs cannot be trusted blindly — there must always be a ‘human-in-the-loop’ to ensure that the technology is producing legally sound, unbiased and contextually appropriate results. This safeguards the integrity of legal advice provided to clients.

However, as with any technological tool, the liability ultimately rests with the lawyers deploying it. In almost every jurisdiction where civil or criminal procedure allows the use of AI, it remains the lawyer’s responsibility to sign off on its outputs. This accountability will also be reflected in the terms under which law firms procure technology, as providers generally cannot and will not guarantee the output’s accuracy.

For example, when AI generates a draft letter or performs legal research, junior lawyers’ new responsibilities will include reviewing the output for accuracy, ethical considerations and contextual relevance. This quality check ensures that AI-generated content meets the high standards expected in legal practice. Beyond catching errors, junior lawyers must understand how AI’s limitations — such as biases in training data or an inability to fully grasp complex legal contexts — affect the quality and fairness of legal work.

Ultimately, junior lawyers will need dual expertise in both law and technology. They must become adept not only in legal principles but also in the capabilities, limitations and the ethical and operational frameworks of AI. Firms that equip their junior lawyers with these skills will cultivate a workforce proficient in both law and technology. This dual expertise is what clients expect and will set forward-thinking firms apart in the competitive legal market.

Evolution of client expectations and the billable hour

The best lawyers have always delivered more than a myopic interpretation of the law. That is not what clients want. They want holistic, strategic and commercial advice that is presented decidedly with practical application.

In today’s legal landscape, clients now expect law firms to leverage technology to further all those tenets and deliver cost-effective solutions that reflect the efficiency of AI. In fact, 52 per cent of in-house teams expect bills to decrease as AI adoption grows,[5] raising questions about the long-term sustainability of the billable hour model.

Both clients and firms are also anticipating a shift toward alternative fee arrangements (AFAs). In a recent survey, over 90 per cent of respondents either strongly agreed or agreed that firms will increase their use of AFAs or modified billing as a direct result of technological advancements.[6]

Junior lawyers are uniquely positioned to drive this transformation by integrating AI into their daily workflows and demonstrating its value to both the firm and clients. By mastering AI tools, they can increase efficiency and contribute to higher-quality outcomes, making a compelling case for fee structures based on value delivered rather than hours billed.

Firms can leverage this by investing in the development of their junior talent and AI capabilities, framing these investments as added value to clients. This shift not only meets client demands for cost-effective services but also promotes a more sustainable business model that aligns fees with the actual benefits provided, ensuring that both clients and firms thrive in the new era of legal services.

Key takeaways

As law firms integrate AI, junior lawyers will play a pivotal role in adopting and refining these tools. Firms should partner with legal technologists to offer training that covers both legal and technical aspects, ensuring junior lawyers shape the future of legal work and add strategic value to the firm.

Here are the key takeaways for law firms embracing AI while supporting junior lawyer development:

Reframe AI as a complement, not a replacement

Reframe AI as a tool that complements human expertise, rather than replacing it – allowing junior lawyers to focus on higher-value activities like strategic thinking and client engagement while developing a tech-focused mindset. By refining AI-generated outputs, junior lawyers can enhance their critical thinking and drafting skills while contributing meaningfully to the firm’s operational success.

Create structured training programmes

Firms should work alongside legal technologists to build structured training programmes that teach junior lawyers to work with AI while maintaining traditional legal skills. Junior lawyers should also be trained in areas like prompt engineering, AI monitoring and quality checks. Emphasising business development skills early in their careers will enable junior lawyers to contribute strategically to the firm’s growth and profitability.

Ensure hands-on learning opportunities

AI should not eliminate opportunities for junior lawyers to engage deeply with legal material. By working with AI-generated content, reviewing it for accuracy and refining it, junior lawyers can still develop essential drafting and analytical skills. Mentorship from senior lawyers remains critical in this process.

Adapt the billable hour model

The most profound impact of AI will likely be in fulfilling the long-standing client demand to achieve more with less. As AI streamlines routine tasks, it will fundamentally change how firms bill for services, and those that fail to adapt risk being left behind. Firms should explore AFAs to better align themselves with the efficiencies and real value that AI can deliver.

Notes


[1] Axiom, ‘The state of UK general counsel in 2024: Key insights and challenges’ (Legal Business, 1 July 2024)

https://www.legalbusiness.co.uk/news-review/the-state-of-uk-general-counsel-in-2024-key-insights-and-challenges/ accessed 3 November 2024

[2] LexisNexis, ‘LexisNexis International Legal Generative AI Survey Shows Nearly Half of the Legal Profession Believe Generative AI Will Transform the Practice of Law’ (LexisNexis, 22 August 2023) https://www.lexisnexis.com/community/pressroom/b/news/posts/lexisnexis-international-legal-generative-ai-survey-shows-nearly-half-of-the-legal-profession-believe-generative-ai-will-transform-the-practice-of-law accessed 3 November 2024

[3] Joseph Briggs & Devesh Kodnani, ‘The Potentially Large Effects of Artificial Intelligence on Economic Growth’ (Goldman Sachs, 26 March 2023) https://www.gspublishing.com/content/research/en/reports/2023/03/27/d64e052b-0f6e-45d7-967b-d7be35fabd16.html  accessed 3 November 2024

[4] Sara Merken, ‘New York lawyers sanctioned for using fake ChatGPT cases in legal brief’ (Reuters, 26 June 2023) https://www.reuters.com/legal/new-york-lawyers-sanctioned-using-fake-chatgpt-cases-legal-brief-2023-06-22/  accessed 3 November 2024

[5] Dylan Brown, ‘How generative AI will transform pricing in law’ (LexisNexis, 11 March 2024) https://www.lexisnexis.co.uk/blog/future-of-law/how-generative-ai-will-transform-pricing-in-law  accessed 3 November 2024            

[6] Mimi Lamarre, ‘AFAs Will Grow as Firms Increase Gen AI Usage, New Survey Finds’ (New York Law Journal, 28 August 2024) https://www.law.com/newyorklawjournal/2024/08/28/afas-will-grow-as-firms-increase-gen-ai-usage-new-survey-finds/  accessed 3 November 2024