both the firm and the client. By working together to establish AI use cases and best practices, law firms can ensure that they are at the forefront of a technologydriven revolution in the legal sector. Firms can begin by selecting key clients to pilot AI-driven solutions and using those experiences to refine their offerings. This targeted approach enables law firms to develop a robust AI strategy while ensuring that clients are aligned with the changes. As firms gather feedback from these early implementations, they can expand their AI usage across their client base, improving the overall delivery and pricing of legal services. Moving Forward: The Time for Action Is Now For law firms, the time to wait and see how AI unfolds in the legal sector is quickly running out. The changes firm lawyers remain hesitant, waiting for AI tools to become more mainstream before fully integrating them into their practices. AI’s Role in Law Firm Operations: Leading Innovation or Following the Trend? 2025 will likely be a pivotal year for law firms as they decide whether to lead in AI adoption or follow clients’ demands. Some law firms are already well down the path of implementing AI tools, with in-house legal departments leveraging the technology to improve productivity. Meanwhile, clients are increasingly aware of AI’s capabilities and are placing pressure on law firms to incorporate it into their operations. One notable case was shared by a managing partner at a midsize law firm, who recounted a client’s request to replace all paralegal work with AI, refusing to pay for paralegal time. The managing partner faced a dilemma: how to respond to a client that misunderstood the current capabilities of GenAI. The partner’s solution was to educate the client about AI’s limitations and present alternative solutions that leveraged the technology in a more realistic and cost-effective way. As clients push for AI-driven changes, law firms will need to manage these expectations carefully. Rather than reacting to clients’ demands, firms should take the lead by proactively engaging clients in discussions about how AI can enhance legal services. This approach allows law firms to remain competitive while ensuring that the tools are used responsibly. A Collaborative Future for AI in Law Rather than taking a passive approach, law firms can capitalize on their role as advisors by guiding clients through the integration of AI. This proactive stance can help shape the future of legal services in a way that benefits 2025 will be a pivotal year for law firms as they decide whether to lead in AI adoption or follow client demands. 46 LAWYER MONTHLY MARCH 2025
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