June was another landmark month for legal technology. From Legal Tech Talk Europe to major AI model developments, regulatory changes and evolving pricing models, the conversation reflected a legal industry moving beyond experimentation and into large-scale transformation.

George Hannah, Founder of Best Practice and Solicitor Apprentice at Lewis Silkin. Hannah shared his observations from one of Europe’s largest legal technology events while exploring how AI, agentic workflows, governance and changing business models are reshaping legal practice.

Legal Tech Becomes a Mature Market

Reflecting on his first Legal Tech Talk conference, Hannah noted the rapid growth of the legal technology sector and the increasing investment flowing into AI companies.

While many vendors now offer similar AI-powered capabilities, differentiation is increasingly coming through branding, customer engagement and storytelling rather than technology alone.

The event also demonstrated that the market is evolving from simple AI assistants towards specialised solutions built around legal workflows and measurable business outcomes.

The Shift from Chatbots to Agentic AI

One of the strongest themes throughout the conference was the move away from general-purpose AI chatbots towards agentic AI.

Rather than generating isolated answers, these systems are capable of completing multi-step legal tasks, following structured workflows and supporting increasingly sophisticated legal processes.

Alongside this shift came a growing focus on source verification, citations and grounded outputs, reflecting the legal profession’s demand for reliability.

Hallucinations Continue to Drive Governance

The discussion examined the recent Pinsent Masons case involving AI-generated inaccuracies submitted to court.

Hannah highlighted how incidents such as these reinforce the importance of human oversight, verification and responsible AI deployment. As courts themselves begin adopting AI tools, both legal professionals and judicial systems are developing stronger mechanisms to identify inaccurate or hallucinated content.

The conversation reinforced that AI remains a tool requiring professional judgement rather than a replacement for legal expertise.

Innovation Through Specialist Legal AI

Among the innovations highlighted was Courtroom AI, a start-up using behavioural data and AI modelling to predict how juries may respond to legal arguments.

Rather than competing as another general-purpose legal assistant, the platform demonstrates how highly specialised AI applications may deliver significant value within niche practice areas.

This reflects a broader market trend towards focused legal solutions instead of one-size-fits-all products.

Training the Next Generation of Lawyers

Hannah discussed how his own work increasingly focuses on identifying inefficiencies, redesigning workflows and building practical AI-enabled systems.

Rather than replacing junior lawyers, AI is changing the nature of their work by encouraging process improvement, critical thinking and legal technology literacy.

Clients may not directly see these internal changes, but they benefit from faster turnaround times and more efficient service delivery.

Data Security and AI Governance Remain Critical

The temporary release of Anthropic’s Claude Fable-5 model raised important questions around data residency, security and client confidentiality.

During its short availability, some vendors required data to be processed through US servers with temporary retention periods, creating concerns for many legal organisations.

Hannah suggested that despite access to more powerful models, many firms are unlikely to compromise on security or client confidentiality simply to gain additional AI capability.

New Commercial Models Are Emerging

As AI operating costs increase, vendors are beginning to rethink pricing strategies.

The discussion explored the move towards consumption-based pricing, where routine work remains part of standard subscriptions while more complex AI tasks incur additional charges.

Beyond software pricing, broader questions were raised about the future of legal billing itself, with firms increasingly considering value-based pricing alongside traditional billable hours.

Skills, Performance, and the Future Lawyer

As AI improves efficiency, firms face new questions around measuring lawyer performance and professional development.

Hannah noted that while AI can remove repetitive work, lawyers still need opportunities to build judgement and experience. Simulated learning environments, AI-powered training systems and practical sandbox exercises are emerging as valuable tools for developing legal skills.

At the same time, the EU AI Act is encouraging firms to invest more heavily in AI education, governance and internal training programmes.

The Legal Profession Continues to Evolve

The discussion concluded that AI is creating significant new opportunities for lawyers rather than reducing demand for legal expertise.

From AI governance and procurement to policy drafting, regulatory compliance and implementation, clients increasingly require legal advice on AI adoption itself.

While AI-native firms continue to emerge, the broader opportunity lies in combining legal expertise with technology to deliver better outcomes for clients.

The legal profession is entering a new phase where technological capability, commercial innovation, and professional judgement must develop together.