Report finds widespread AI use but highlights gaps in integration and governance
The use of artificial intelligence in the legal sector across the UK and Ireland has become widespread, but many firms are facing challenges in integrating the technology effectively, according to a new report.
The 2026 UK & Ireland Legal Insights Report, published by Clio, found that 89% of legal professionals now use AI tools in some capacity. A significant proportion 70% have adopted the technology within the past year, reflecting a rapid shift in how legal services are delivered.
Despite this high level of adoption, the report indicates that only 27% of firms have fully integrated AI across their operations. Most firms continue to use the technology in a limited or fragmented way, often confined to specific tasks or departments.
The findings suggest that the legal industry has reached a point where the key issue is no longer whether to adopt AI, but how to implement it effectively. Workflow integration has emerged as a central challenge, with 37% of legal professionals identifying it as the primary barrier to realising the benefits of technology.
The report also highlights operational gains among firms that have adopted AI more extensively. Among users, 81% reported faster client response times, 78% said they were able to handle higher volumes of work, and 77% noted improvements in the quality of their legal output. Additionally, 71% indicated that AI has reduced the cost per matter by streamlining administrative and research tasks.
However, governance and transparency remain areas of concern. The report found that 17% of firms do not have a formal AI policy in place, despite allowing its use. While many firms claim to disclose AI usage to clients, only 7% of clients reported being informed about its use in their cases.
Public expectations around transparency appear to be increasing, with 79% of respondents stating that lawyers should disclose when AI is used in legal work.
The report also identified changes in pricing models within the sector. Fixed-fee billing now accounts for 53% of legal matters, compared with 32% for hourly billing. This shift reflects the impact of AI on reducing the time required to complete legal tasks.
Clio stated that firms able to integrate AI effectively into their workflows are better positioned to improve efficiency and remain competitive in a changing market.