City law firms are facing a potential 'crisis of judgment' as they increasingly rely on artificial intelligence (AI) tools, according to a new report by Positive Group, exclusively shared with City AM. The study indicates that the legal sector's rapid adoption of AI, with over 60% of lawyers now using the technology for tasks such as drafting, research, and client delivery, risks undermining critical thinking and traditional training models.
The report suggests that rather than fundamentally transforming legal practice, AI tools are often being integrated into existing workflows without a corresponding shift in methodology. The intense pressure of billable hours and heavy workloads is highlighted as a significant behavioural risk, leading time-constrained lawyers to uncritically accept AI-generated outputs without thorough scrutiny. This concern is amplified by previous instances of AI 'hallucinations' in legal cases, where 'fake' evidence was presented to courts, with junior lawyers sometimes bearing the blame.
A key finding of the report is the potential impact on the traditional apprenticeship model for junior lawyers. High-volume, repetitive tasks like document review and basic research, which were historically crucial for skill development among new legal professionals, are now being automated by AI. This automation, the report warns, could lead to junior lawyers receiving less comprehensive training in interrogating sources, making firms more vulnerable to over-trusting AI outputs.
Francesca Bennetts, a partner at A&O Shearman, emphasised the enduring importance of core legal skills. She stated, "The skills that make a good lawyer, critical thinking, creativity, and attention to detail, are the same skills needed to be an AI-augmented lawyer. The tools may have changed, but the foundations of good practice remain the same." Will Marien, CEO of Positive Group, echoed this sentiment, cautioning that some firms are "potentially sleepwalking into a crisis" and must equip their staff with the behavioural skills to counter automation bias and over-trust, ensuring human oversight remains paramount.
Despite these warnings, law firms find themselves in a challenging position. Client expectations increasingly demand the integration of cutting-edge AI tools, while competitors are investing heavily in these systems – for example, Kirkland & Ellis reportedly invested $500 million to develop its own AI capabilities. This creates a double standard, as clients demand AI utilisation but also expect human validation, lower costs, and full liability, according to an unnamed legal leader cited in the report. This tension underscores a broader shift in how value is perceived, balancing efficiency and speed with the critical need for professional judgment.