Artificial Intelligence Surpasses Traditional Methods, as Over Half of Companies Embrace or Investigate Its Implementation in the Legal Sector
In the modern legal landscape, Artificial Intelligence (AI) is fast becoming an integral part of law firm operations. The primary focus of AI adoption is automating routine tasks, enhancing client communication, and boosting report analytics, with significant advancements observed in telephone answering and analytics reporting.
AI in Telephone Answering
AI-powered virtual receptionists are revolutionising client intake processes by providing 24/7 law-specific answering services. These AI receptionists efficiently handle calls, reduce missed opportunities, and lower staffing costs. They deliver legal-specific intelligence, ensuring data privacy compliance, such as HIPAA, and seamlessly integrate with law firm CRM systems. This integration has led to approximately a 40% reduction in non-billable tasks related to client communication and intake [2].
Moreover, AI agents maintain multi-channel communication (email, web chat, WhatsApp) consistently without losing context, triaging inquiries, and delivering real-time client updates. This not only reduces repetitive administrative work but also improves client satisfaction [4].
AI in Analytics Reporting
While data on analytics reporting in law firms is less detailed, AI tools are increasingly supporting advanced analytics by integrating with practice management and document systems (e.g., Clio, NetDocuments). This integration helps organise case data, track workflows, and deliver actionable insights that improve productivity and strategic decision-making [4].
Broader Trends and Benefits
AI adoption is gathering pace, with many firms investing in generative AI and agentic AI to automate drafting, research, contract analysis, and document review. Studies show that this can save lawyers significant time—up to nearly 240 hours per year saved per lawyer on routine tasks [1][3].
As of now, 36% of legal professionals use AI daily, though full integration remains a work in progress. The benefits of AI for law firms, as cited by surveys, include enhanced productivity, faster client intake and processing (up to 3x speed), reduced management overhead (75-80%), improved client satisfaction, and a competitive advantage through early AI adoption [2][3].
Key Statistics
- Law firms are primarily using or considering AI for telephone answering (87%) and analytics reporting (87%).
- The main benefits of AI for law firms, as cited by the survey, are competitive advantage (53%), productivity efficiencies (40%), and better service outcomes compared with people (40%).
- Government advice and guidance is a trusted source for AI information (33%).
- Friends and family are a trusted source for AI information (33%).
- Among the most trusted sources for AI information are peers and colleagues (53%).
- Another concern is data security risks (33%).
- The survey was conducted by Moneypenny among more than 750 businesses in the US.
- Over 53% of the surveyed law firms are currently using or considering using AI.
- 67% of firms that have implemented AI believe organisations need to take the lead.
Challenges and Concerns
One of the concerns about AI is its expense (53%). Another concern is the potential for poor service or experience for clients (33%). AI is becoming a crucial part of practice operations for many businesses, but it isn't a one-size-fits-all solution, according to Richard Culberson, CEO North America at Moneypenny.
60% of firms that have implemented AI need better guidance on how to implement it effectively. The survey suggests a need for better guidance on the use of AI. Another third concern is the potential for poor service or experience for clients (33%).
What matters is creating experiences that are personal, relevant, and contextually right. Many firms benefit from AI because a large proportion of their customer interactions are about routine, frequently asked questions. AI allows real people to focus on complex, sensitive, or high-value conversations.
In conclusion, AI is playing a transformative role in law firm operations, enhancing efficiency, and improving client communication. As more firms embrace AI, we can expect to see continued advancements in this area, bringing about a new era of productivity and strategic legal work.
Artificial Intelligence (AI) is not only revolutionizing telephone answering in law firms by providing law-specific, 24/7 answering services, but it is also delivering legal-specific intelligence and integrating with law firm CRM systems, leading to a significant reduction in non-billable tasks [2]. Furthermore, AI is playing a crucial role in analytics reporting by integrating with practice management and document systems, helping to deliver actionable insights that improve productivity and strategic decision-making [4].
