In this session, Alex Baker shared his journey from ad tech into legal technology and why the idea of the AI-driven law firm is moving from theory to practice. Traditionally, law firms have used technology to assist human lawyers. But Baker described a shift: firms can now embed AI deeply enough to deliver much of the output clients need, with human lawyers stepping in only for high-level oversight and validation.
He pointed to Garfield — the first SRA-approved AI-native law firm in the UK — as an early proof of concept. Garfield automates debt recovery work up to £10,000, handling client intake, data processing, and initial outputs, leaving human lawyers to audit results and ensure quality.
Where AI Fits — and Where It Doesn’t
Baker cautioned against aiming for a “full-service” AI-native firm. Success depends on carefully choosing practice areas where technology can handle high-volume, repeatable work and where fees justify the investment. Areas such as debt recovery, employment law, family matters, and certain conveyancing niches show promise, while heavily commoditised spaces (e.g., will writing) are less attractive for new entrants.
Volume and market understanding are critical. AI solutions need enough scale to justify development costs and enough differentiation to stand out in already competitive spaces.
Opportunity and Barriers
For mid-market and boutique firms, AI offers the chance to disrupt — but consensus and capability remain barriers. Large firms may experiment with products but often struggle to overhaul entrenched partnership models and risk cannibalising their own revenue. Smaller, agile teams with defined workflows can move faster, especially if they partner with external tech and commercial experts.
Financing is evolving: while big firms may self-fund, private equity interest is growing. Venture capital remains hesitant but is watching the space closely.
Skills and Mindset Shift
Baker emphasised that deep domain expertise alone isn’t enough. Lawyers must think like technology entrepreneurs — defining workflows, validating markets, and planning go-to-market strategies. Yet they don’t need to do it alone; collaboration with tech partners can bridge skills gaps.
For lawyers considering this path, the rewards are compelling. AI-driven models can transform 35% profit margins into tech-style multiples by creating scalable products that reach larger market shares.
Looking Ahead
Change in legal services may feel slow, but the combination of maturing AI and entrepreneurial lawyers is accelerating transformation. Over the next five years, we can expect more specialist AI-native firms to emerge, opening access to justice in underserved markets and challenging traditional players with faster, cheaper, and highly targeted solutions.
