Our monthly round-up on AI features Legal trainee and founder of Best Practice, George Hannah, who presented his debrief on the latest developments in legal AI. The discussion immediately underscored the accelerating pace of change, with estimates of approximately 100 new legal tech companies emerging each quarter, reflecting both the fragmentation and opportunity within the sector.
From Legal Tech to Model Providers
A key theme was the shifting relationship between law firms and AI providers. Freshfields’ reported partnership with Anthropic signalled a notable move away from intermediary legal tech platforms towards direct engagement with model providers. Hannah suggested this offers earlier access to model capabilities and greater flexibility, aligning with a broader strategy of “optionality” rather than long-term vendor lock-in.
This raises a strategic question for firms: whether to commit to established legal AI platforms or maintain agility by working closer to foundational model providers. The uncertainty around the long-term value of current tools remains a defining feature of the market.
Adoption Challenges and Generational Dynamics
Despite rapid innovation, adoption within firms remains uneven. Hannah highlighted that while firms encourage AI usage, transparency and supervision are essential; junior lawyers are expected to disclose where AI has been used and how.
A recurring insight was the growing importance of reverse mentorship. Younger, tech-native lawyers often drive experimentation and uncover new use cases, while more senior practitioners bring oversight and judgment. This dynamic is reshaping how knowledge flows within firms and is critical to effective AI integration.
The Rise of “Vibe Coding” and New Roles
The concept of “vibe coding” continues to gain traction, enabling lawyers to build bespoke tools tailored to their workflows. Hannah referenced the emergence of platforms such as Legal Quant, where lawyers share self-built solutions, signalling a shift towards greater individual agency in tool creation.
This trend reflects a broader transformation in legal roles, with increasing overlap between legal, technical, and operational skill sets. The ability to clearly define problems and workflows is becoming as important as traditional legal expertise.
Collaboration, Ecosystems, and Client Expectations
The discussion explored the growing complexity of collaboration across platforms. With clients and firms often using different tools, expectations around shared workspaces are increasing. However, this creates friction and raises questions about interoperability and ecosystem lock-in.
There is a clear tension between the desire for seamless collaboration and the competitive strategies of AI providers seeking to retain users within their own environments.
Market Competition and Branding
The competitive landscape was likened to a “Coke v Pepsi” battle between leading legal AI platforms. Significant investment and marketing efforts, ranging from celebrity endorsements to widespread advertising, highlight the race to establish brand dominance in a rapidly expanding market.
At the same time, enterprise players such as Microsoft are entering the space via integrated tools like Word, signalling a potential shift towards more embedded, cost-effective solutions for firms.
Risk, Governance and Best Practice
A notable case involving AI-generated hallucinations in court filings served as a reminder of the risks associated with AI use. While such incidents remain rare, they reinforce the need for robust verification processes and clear accountability.
Best practices emerging from the discussion included:
- Sharing AI prompts and outputs for transparency
- Conducting cross-checks on data extraction tasks
- Embedding supervision across all levels of legal work
The importance of maintaining “the lawyer in the loop” remains central, with human judgment positioned as the critical final layer.
Regulation, Policy, and Implementation
The conversation also touched on the challenges of implementing AI policies within organisations, particularly in light of evolving regulatory frameworks such as the EU AI Act.
Participants highlighted the tension between enabling innovation and managing risks related to IP, confidentiality, and compliance. The need for practical, adaptable policies, rather than overly rigid frameworks, was emphasised.
A growing trend is the emergence of specialised “AI lawyers” who support clients in deploying tools and developing governance structures.
Looking Ahead: A Profession in Transition
The session concluded with reflections on the long-term transformation of the legal profession. While AI is unlikely to replace lawyers, it is fundamentally reshaping how legal work is performed.
Key takeaways include:
- Early exposure to AI tools is becoming essential for future lawyers
- Collaboration across generations is critical to successful adoption
- New roles and skill sets are emerging at the intersection of law and technology
- Change management, rather than technology itself, may be the greatest challenge
The profession is moving towards a more tech-enabled, flexible, and potentially decentralised model, while still relying on human expertise, judgement, and experience to deliver value.
