Why UK law firms need stronger controls around AI-assisted work
Updated: Sep 19
According to a recent report by Insurance Edge, AI is increasingly embedded in live legal matters, speeding up workflows and transforming how firms handle cases. From research and contract review to due diligence and compliance, AI tools are becoming part of everyday legal work. Yet, as these technologies accelerate processes, law firms face a growing challenge: ensuring that control and security keep pace with AI adoption.
How AI is changing legal workflows
AI can take on many routine tasks that traditionally consume significant time and resources in law firms. Some key areas where AI is making an impact include:
Legal research: AI-powered tools can quickly scan vast databases of case law, statutes, and regulations, delivering relevant results faster than manual searches.
Document and contract review: AI can identify key clauses, flag risks, and summarise lengthy contracts, reducing the burden on lawyers.
Due diligence: Automated analysis helps spot inconsistencies or missing information in client documents and third-party data.
Client intake and matter management: AI can assist with gathering initial client information, organising case files, and tracking progress.
Administrative and compliance tasks: Routine checks, regulatory updates, and audit trails can be supported by AI systems.
These applications help legal teams move faster and reduce manual effort, allowing lawyers to focus on higher-value work. However, the benefits come with risks if firms do not maintain strong oversight.
The control challenge for AI-assisted legal work
Many UK law firms have embraced cloud platforms like Microsoft 365 and various AI tools, but their IT setups may not have evolved to manage the new risks AI introduces. Without clear controls, firms risk exposing sensitive client data or relying on unchecked AI outputs.
Key control issues include:
Data security and client confidentiality: Legal files contain privileged information, including case details, contracts, ID documents, and client communications. AI tools often require data input, raising questions about where data is stored, who can access it, and how it is protected.
Access permissions: Microsoft 365 and other platforms offer granular permissions, but firms must ensure only authorised staff can access matter files and AI tools. Shadow AI use—where employees use unapproved AI apps—can bypass controls.
Output verification: AI-generated results are not infallible. Firms need processes to check AI outputs before relying on them in legal advice or filings.
Cyber security: AI tools can introduce new vulnerabilities, especially if integrated with existing systems without proper safeguards.
Data storage and compliance: Firms must comply with data protection laws, ensuring client data is stored securely and handled according to regulations.
Escalation and recovery: Clear procedures are needed to address errors, data breaches, or system failures involving AI tools.
Practical questions for law firm leaders
To keep control aligned with AI use, managing partners, operations directors, and compliance leads should ask:
Can you identify where AI tools are being used across the firm’s workflows?
Are client files and sensitive data protected from unnecessary or unauthorised access?
Is there a clear policy guiding staff on the appropriate use of AI tools?
Are AI outputs reviewed and verified by qualified personnel before use?
Does your IT infrastructure support secure integration of AI applications?
Are there defined escalation routes and recovery plans in case of AI-related incidents?
Answering these questions helps firms build a framework that balances speed with security and compliance.
Building the right controls around AI
Implementing AI in legal workflows requires more than just adopting new software. Firms must:
Map AI usage: Document which AI tools are in use, their functions, and data flows.
Review access controls: Regularly audit permissions on platforms like Microsoft 365 to prevent overexposure.
Train staff: Provide clear guidance on when and how to use AI, emphasising data protection and output checking.
Establish review processes: Ensure human oversight of AI-generated work, especially for critical documents or decisions.
Monitor security: Integrate AI tools within existing cyber security frameworks, including threat detection and incident response.
Maintain compliance: Align AI data handling with GDPR and other relevant regulations.
Plan for incidents: Develop protocols for addressing AI errors, data loss, or breaches swiftly.
By embedding these controls, firms can harness AI’s benefits without compromising client trust or regulatory obligations.
AI can improve legal workflows if controls keep pace
AI is transforming legal work in UK law firms by speeding up research, review, and compliance tasks. This shift offers real gains in efficiency and client service. Yet, without strong controls around data access, output verification, cyber security, and staff guidance, firms risk weakening client confidentiality and operational resilience.
Law firms that take a proactive approach to managing AI tools will protect sensitive information and maintain high standards of legal practice. The key is to balance speed with security, ensuring AI supports lawyers rather than creating new risks.
