Back in May, our research report, “AI in UK Law Firm: Benchmarking Its Adoption and Anticipating the Future“, confirmed what many in the sector were feeling: AI was no longer a future concept but a present-day reality. We found significant adoption across UK firms, driven by a complex mix of stakeholder pressures and the promise of efficiency. The key question then was how firms would move from tactical experimentation to strategic, value-driven implementation for both themselves and their clients.

The summer of 2025 has provided a clear, and perhaps startling, answer. The conversation has evolved at a rapid pace. The focus has shifted from a firm’s internal adoption journey to the rapidly hardening expectations of its clients. Our new September 2025 update, “AI in Law Firms: an Update”, reveals that the most significant force shaping the legal sector is no longer coming from within, but from the clients themselves.

The Client is Now in the Driving Seat

The most critical finding in our new report is the dramatic acceleration of AI adoption and trust within in-house legal departments. This is no longer a gentle nudge; it’s a measurable market force that is reshaping the client-firm dynamic.

Our research found that trust in AI as a reliable legal resource among General Counsel has nearly doubled in a single year, jumping from 21% in 2024 to 40% in 2025. This confidence is backed by real investment, with 80% of GCs now allocating up to a fifth of their legal budgets to technology. In-house teams are not just buying software; they are building capability, and they expect their external counsel to be on the same page, if not a chapter ahead.

A Growing Disconnect Between Hype and Reality

This surge in client-side expectation is creating a fascinating paradox within law firms. While individual lawyers are embracing AI and seeing tangible benefits, the firm-wide, systemic impact has yet to materialise.

The productivity gains are real and immediate. The data shows that 65% of lawyers using AI are saving between one and five hours per week, with another 19% saving six or more hours. This is freeing up significant time that can be redirected to higher-value work. And yet, a recent Bloomberg Law survey found that the overwhelming sentiment among lawyers is that AI has so far resulted in “no change” to core firm processes and business models. This points to a market in a state of widespread individual experimentation, not deep strategic integration.

Nowhere is this disconnect more apparent than in the unresolved conflict with the billable hour. Our report found that while 80% of corporate legal executives expect their bills to be reduced as a result of AI, 53% of law firms expect their charge-out rates to remain the same, with a further 20% anticipating an increase. This growing gap between client expectations and firm economics is a significant strategic vulnerability.

Download the Full Report to Navigate the Path Forward

These findings are just a snapshot of the complex landscape detailed in our latest research. The full report provides a thorough analysis of the new strategic imperatives facing law firm leaders, from managing a new class of AI-related risks to the urgent need to redefine the firm’s value proposition.

To gain an understanding of the forces shaping the legal profession, register here for a complimentary, downloadable copy of the full report: “AI in Law Firms: An Update (September 2025)”.

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From Insight to Impact: How We Can Help

Understanding this new landscape is the first step. The next is to build a strategic response. The challenge has moved from whether to adopt AI to how to implement it for measurable, strategic value. Our proprietary AI Bridge Methodology is a structured process designed specifically for the nuances of the legal sector, bridging the critical gap between your firm’s current capabilities and its future strategic needs. For senior management, we also offer a confidential one-to-one advisory service – a safe space to ask any question and gain the clarity needed to lead with confidence in this transformative era.