In this article:

• How AI can be used by legal teams
• Top benefits of legal AI
• What to consider when using AI for legal work
• Overcoming barriers to AI integration
• The future of AI in the legal sector

Legal teams often find themselves slowed down by the repetitive, time-consuming tasks that make up contract review, drafting, and compliance. These tasks can delay business operations or add significant costs when outsourced.Generative AI is changing that. It accelerates workflows, improves efficiency, and frees up legal, as well as procurement and sales teams, to focus on strategic work. It makes it possible to do in minutes work that previously took hours.

According to Thomson Reuters’ 2025 Future of Professionals Report, 77% of legal professionals believe AI will have a high or transformational impact on their work within five years. Some 72% view AI as a force for good in their profession. Half of the respondents were prioritising AI adoption to enhance client satisfaction and operational efficiency.

‍Read more: Goodbye to the grind: How legal AI is streamlining repetitive work

‍This blog explores how AI for law firms enhances operational efficiency, improves client service, and creates new revenue streams. It also covers key benefits, adoption considerations, ethical and security concerns, and the future of AI in legal workflows.

AI in the legal industry

AI streamlines operations, reduces costs, and ensures faster, more accurate results. From automated contract reviews to predictive analytics, AI is now capable of tackling even the most complex workflows.

1. Document review and analysis

AI tools can review and analyse contracts in minutes, rather than hours, identifying inconsistencies, missing clauses, or risks. For example, a law firm can use AI to flag missing force majeure clauses across hundreds of vendor agreements, reducing review times from hours to minutes, cutting costs, and enhancing accuracy.

2. Legal research

AI platforms can scan vast legal databases to find case law, statutes, and regulations in seconds. A lawyer preparing for a case could use AI to identify precedent-setting rulings in minutes, improving outcomes for the client.

Read more: The best AI tools for legal research in 2025

3. Handling large volumes of legal data

AI analytics tools transform vast data sets into actionable insights, enabling smarter decision-making. AI can identify litigation patterns, forecast outcomes, and highlight operational inefficiencies. Predictive analytics help assess the likelihood of success for cases or settlements, enabling firms to allocate resources strategically and advise clients with greater confidence.

4. Contract lifecycle management

From drafting to negotiation, AI streamlines the entire contract lifecycle. For instance, a procurement team can use AI to generate NDAs automatically, track renewal deadlines, and flag non-standard terms during negotiations, reducing errors and saving significant time.

Read more: ​​The 9 best AI contract review software tools for 2025

5. Due diligence

AI automates the due diligence process for mergers, acquisitions, and vendor reviews. For example, an M&A team can use AI to review thousands of contracts in a target company’s portfolio, flagging compliance risks or unfavorable clauses, reducing the time required for this intensive task.

6. Discovery

AI-powered discovery tools sift through electronic records to find relevant evidence for litigation. For instance, a firm handling a corporate dispute can use AI to analyse terabytes of email data and reports in moments, uncovering the key communications that strengthen their case while reducing costs and preparation time.

7. Compliance and risk management

AI ensures compliance with changing regulations by automating contract reviews, reporting, and redrafting. For example, a firm needing to comply with DORA can use AI to scan all vendor contracts, highlight non-compliant clauses, and automatically redraft them with updated language. This mitigates risk and saves thousands of hours.

Read more: DORA compliance made easy with legal AI

8. Predictive analytics

By analysing historical data, AI tools provide insights into litigation outcomes, settlement probabilities, and risk assessments. For example, a litigation team can use predictive AI to estimate the chances of winning a case based on similar past cases, helping them create a stronger strategy and provide data-driven advice to clients.

9. Additional revenue streams

AI enables law firms to develop new revenue opportunities by offering automated legal support. For example, a law firm supporting entrepreneurs could create an additional revenue stream by providing a legal AI plug-in that answers simple legal queries or performs basic contract checks.

Key benefits of AI for law firms

1. Differentiate your brand as an innovator

AI-powered legal services set your firm apart by demonstrating efficiency, modernisation, and a commitment to innovation.

How AI achieves this:

• Shows you’re up to date with legal tech innovation.
• Demonstrates efficient resource use by automating repetitive tasks and reducing manual workload.
• Enhances research capabilities by quickly identifying relevant case law, precedents, and regulatory updates.

2. Better results for clients

Work more efficiently and deliver faster, more accurate legal services, increasing client satisfaction and loyalty.How AI achieves this:

• Reduces contract review time from hours to minutes.
• Speeds up legal research with AI-driven case law and regulatory searches.
• Enables non-legal teams to resolve basic queries without waiting for legal input.

3. Create new revenue streams

AI allows firms to monetise digital legal assistance, offering clients instant access to answers while lawyers focus on higher-value work.How AI achieves this:

• Provides a 24/7 AI legal assistant to answer common client questions.
• Offers automated contract review as a service, generating passive income.
• Supports entrepreneurs and SMEs with self-service legal tools.

4. Improved employee retention

AI reduces repetitive, low-value tasks, improving job satisfaction and allowing lawyers to focus on meaningful work.How AI achieves this:

• Automates routine contract checks and compliance reviews.
• Reduces the need for manual document analysis.
• Frees up lawyers’ time for complex cases and strategic advising.

What to consider when using AI for legal work

There are some things to consider before introducing AI into your workflows. 

1. Data privacy and security

AI tools should protect sensitive client data with features like anonymisation and robust encryption. Solutions like LEGALFLY prioritise data security by anonymising sensitive information before processing.

‍Read more: 5 must-haves for secure legal AI

‍2. Bias and fairness

AI algorithms should be free of bias to ensure equitable outcomes, particularly in legal contexts. Firms should adopt transparent tools with proven fairness.

3. Transparency in AI decision-making

It’s essential to understand how AI tools reach decisions or generate insights. Transparent tools build trust among clients and regulators.

Overcoming barriers to AI integration

1. Technical challenges

AI must integrate with existing systems. For example, LEGALFLY’s MS Word integration  ensures minimal disruption to existing workflows.

2. Training staff for AI-enhanced workflows

Legal professionals might need training to maximise the benefits of AI.  

3. Aligning AI with firm strategy

AI adoption should align with the firm’s strategic goals, from improving client services to accelerating operational efficiency.

The future of AI in the legal sector

Wider adoption

As AI technology becomes more advanced and accessible, even small and mid-sized law firms will be able to integrate AI into their operations. It will streamline workflows, improve client service, and allow them to remain competitive against larger firms with more resources. Ethical standardsThe industry will see a greater emphasis on ethical AI tools that prioritise transparency, fairness, and privacy. Tools that can explain their decision-making processes, demonstrate unbiased results, and comply with data privacy regulations will dominate the market. This is likely to build trust among clients, regulators, and legal professionals.

Hybrid legal teams

AI will become a core part of legal teams, complementing human expertise. These teams will blend the analytical speed and precision of AI with the nuanced judgment and creativity of human lawyers. For example, AI will handle time-intensive tasks like document review, compliance checks, and legal research, allowing legal professionals to focus on strategy, negotiation, and client relationships.

End-to-end solutions for legal services

AI tools will evolve from performing isolated tasks to providing end-to-end solutions that cover the entire lifecycle of legal work. From intake and analysis to drafting, compliance, and follow-up, AI will streamline processes, reduce errors, and ensure consistency across all operations. Firms adopting such solutions will have a significant competitive advantage, enabling them to serve clients faster, more accurately, and at a higher margin.

AI-powered collaboration across teams

AI will lead to better collaboration between legal and non-legal teams. Non-legal teams, such as sales or procurement, will use AI-powered tools to address basic legal needs independently, while legal professionals will oversee more complex or sensitive matters. This will create an environment where AI enhances efficiency across the entire organisation, breaking down silos and improving collaboration.

Conclusion

AI is transforming how law firms operate by streamlining workflows, improving compliance, and enabling faster decision-making. From automating document reviews to enabling non-legal teams to self-serve, AI for law firms offers unmatched flexibility and productivity.

With LEGALFLY, law firms and legal departments can harness the full potential of AI while maintaining the highest standards of privacy and compliance. By anonymising sensitive data on-premise, LEGALFLY ensures client confidentiality while automating time-consuming processes such as contract drafting, review, and compliance checks. Its ability to integrate with tools like Microsoft Word and support custom workflows makes it adaptable to any organisation’s unique needs.

LEGALFLY empowers teams to deliver faster, more accurate results, create new revenue streams, and improve client satisfaction. As AI continues to reshape the legal industry, solutions like LEGALFLY set the standard for secure, efficient, and transformative legal technology.