Artificial Intelligence (AI) is increasingly influencing how legal services are delivered across the UK. Whether through legal research platforms, contract analysis software, or AI-powered client interfaces, AI presents law firms—particularly small to medium-sized practices—with opportunities to increase efficiency and competitiveness.
However, with innovation comes responsibility. Solicitors must navigate a complex landscape of legal and regulatory obligations, from the Solicitors Regulation Authority (SRA) to the UK General Data Protection Regulation (UK GDPR), the Data Protection Act 2018, ICO guidance, and Law Society best practice recommendations. This article provides a detailed, practical overview of these frameworks and offers insights into the key challenges and strategic considerations for adopting AI safely and effectively.
The SRA Standards and Regulations set the ethical and professional foundations for all solicitors in England and Wales. The use of AI does not absolve practitioners of these obligations.
These rules apply regardless of whether the work is performed by a solicitor or using technology. This makes proper oversight of AI systems essential.
“Where work is carried out on your behalf by others, you remain accountable for the work.”
This includes the use of AI tools and third-party legal tech platforms. Firms must have mechanisms in place to review, verify, and take responsibility for AI-generated outputs.
The Law Society has published several resources on legal technology, including the 2021 report: “Lawtech: A practical guide for law firms and legal departments”, which emphasises:
AI tools often process vast amounts of client data, including personal and special category data, such as health records, criminal convictions, or financial information. This triggers obligations under:
Requires firms to provide meaningful information about the logic involved in any automated decision-making processes, particularly where decisions have legal or similarly significant effects.
Under UK GDPR Article 35, a DPIA is mandatory when:
ICO guidance states that AI systems that process personal data almost always require a DPIA.
The ICO’s “AI and Data Protection Guidance” (2020) outlines the expectations on fairness, accountability, and transparency in AI use:
AI can significantly reduce the time and cost of routine tasks such as:
According to a 2023 survey by The Law Society, over 50% of firms using AI tools reported productivity gains of 25% or more.
Chatbots and virtual assistants can provide:
This is especially valuable for small firms aiming to offer high-quality service with limited staffing.
Automating administrative processes can lower overheads. A PwC report (2022) estimated that AI adoption could reduce operational costs by up to 30% in some legal functions over the next five years.
AI systems, particularly third-party platforms, can pose cybersecurity risks. A 2023 report from the UK National Cyber Security Centre (NCSC) highlighted that legal services are increasingly targeted by ransomware attacks, with small firms being particularly vulnerable.
Key actions:
Relying on AI-generated advice or analysis does not exempt a solicitor from liability. If a client suffers loss due to faulty AI output, the firm could face a claim in negligence or a complaint to the Legal Ombudsman.
Example: An AI-powered contract review tool fails to flag a key indemnity clause—this omission could constitute a breach of duty under Rule 3.2 (competent service).
AI models may replicate or amplify existing biases in data. For example, algorithms trained on historical case data may show racial or gender bias in risk assessments or decision-making.
This can breach:
Regular algorithmic audits and diverse training data are essential to mitigate this risk.
To stay compliant and avoid risk, solicitors should implement the following strategies:
Vet AI vendors for compliance with GDPR, cybersecurity standards (e.g., ISO 27001), and ethical principles.
Ensure contracts include data processing agreements (DPAs) under Article 28 of GDPR.
Never rely solely on AI for final decisions.
Establish workflows where human solicitors review and validate all outputs before delivery to the client.
Inform clients about the use of AI in their case.
Obtain explicit consent where required, especially for sensitive data or automated decision-making.
Update terms of engagement to reflect AI involvement.
Provide ongoing training for staff on how AI works and its limitations.
Appoint a Data Protection Officer (DPO) or compliance lead where appropriate.
Carry out periodic DPIAs, risk assessments, and audits.
Maintain logs and records of AI activity, decisions, and justifications.
The UK government is currently pursuing a pro-innovation approach to AI regulation, outlined in its AI Regulation White Paper (March 2023). Key developments include:
While this offers flexibility, it also places greater responsibility on firms to interpret and apply high standards themselves.
As artificial intelligence becomes more embedded in legal service delivery, small and medium-sized law firms in England and Wales are well-placed to benefit—through enhanced productivity, client satisfaction, and operational efficiency. However, those benefits come with clear and non-negotiable obligations under the SRA Standards and Regulations, UK GDPR, the Data Protection Act 2018, and wider regulatory frameworks, including guidance from the Law Society and ICO.
The solicitor’s duty of competence, confidentiality, accountability, and fairness does not diminish with the introduction of AI. On the contrary, it increases the importance of understanding, supervising, and explaining the tools we use. Whether it’s safeguarding client data, preventing algorithmic bias, or ensuring that decisions are made with proper human oversight, firms must integrate ethical and regulatory thinking into their digital strategy from the outset.
As the regulatory landscape continues to evolve, law firms should proactively embrace a culture of compliance, transparency, and continuous learning. Conducting regular Data Protection Impact Assessments, updating internal policies, investing in staff training, and engaging with trusted legal tech providers are no longer optional—they are essential components of responsible innovation.
With a strategic and ethical approach, AI can empower solicitors to do what they do best: deliver excellent, client-centred legal services. The challenge lies not in resisting technology, but in adopting it wisely, accountably, and in alignment with our professional duties.
The key takeaway? AI should augment, not replace, professional judgment. Used responsibly, it can help modern legal practices thrive—efficiently, ethically, and compliantly.
Useful resources: