Beyond the Buzz: How AI is Redefining the Legal Sector in 2025

Artificial intelligence (AI) has quickly moved beyond being a buzzword. In 2025, it is a defining theme across the legal sector. UK law firms are no longer simply testing the waters; they are making visible investments in AI and actively marketing their capabilities. For clients and professionals alike, the question is no longer if AI will transform the profession, but how fast.

Where the Legal Market Stands on AI

The UK’s largest firms are leading the way. All of the top 20 firms have either published AI-focused insights, hosted events, or are promoting their AI expertise to clients. Almost all have invested in technology to back this up.

By contrast, mid-tier firms are progressing more slowly: just 60% of the next 20 largest firms are publicly promoting AI, and only half have invested in third-party tools. This highlights a growing divide in the pace of adoption.

The global picture is equally clear. According to the Thomson Reuters 2025 AI Report, 22% of organisations are now actively using generative AI in their workflows, nearly double the 12% reported in 2024. Looking ahead, 95% of professionals expect AI to become central to daily operations within the next five years.

Clients’ Expectations are Rising

Client demand is now one of the most powerful drivers of change. A majority (57%) of clients say they want their legal advisers to be using AI. Yet 71% admit they don’t know if their firms are doing so (Thomson Reuters, 2025). This disconnect creates both a challenge and an opportunity. Adopting AI matters but so does communicating openly with clients about how it is being used to improve efficiency, accuracy, and value.

Innovation in Action

Real-world examples of AI in practice are multiplying. Linklaters is rolling out Swedish platform Legora across all 30 of its offices after a successful pilot, helping lawyers draft, research, and review contracts in minutes rather than hours. Simmons & Simmons has launched the UK’s first AI-focused law internship, offering aspiring lawyers hands-on experience with technologies shaping the sector’s future (Legal Cheek, 2025).

On the investment side, Milbank recently advised Nscale on a record $1.1 billion Series B funding to expand AI data centres across Europe (Non-Billable, 2025).

These examples show AI is no longer an experiment, it is becoming embedded in how firms deliver legal services.

Balancing Opportunity and Risk

While enthusiasm is high, firms remain cautious. The Thomson Reuters 2025 Report highlights that many want to thoroughly vet AI tools before adopting them. This careful approach reflects the high standards of compliance, security, and accuracy expected in the legal profession.

Interestingly, fewer than 20% of professionals see AI as a threat to jobs or profitability. Instead, most view it as an enabler, freeing up time for higher-value tasks and strengthening client service.

What Comes Next?

AI is reshaping not just how lawyers work, but also how firms communicate, deliver services, and attract future talent. The firms that stand out will be those that embrace technology effectively, and are transparent with clients about how AI is being used to add value.

For legal professionals, AI is not replacing core expertise. It is becoming a tool that improves efficiency, enhances collaboration, and supports lawyers in focusing on what matters most: delivering exceptional advice and building trusted client relationships.