Artificial intelligence is transforming industries across the board, yet the legal sector finds itself lagging behind in embracing this technology, particularly when it comes to client communications. Recent analysis by RingCentral on The state of AI in legal communications reveals a striking disparity: 16.67% of legal respondents reported having no plans or timeline to integrate AI into client conversations. This stands in stark contrast to other sectors, with financial services at 2.55%, retail at 6.55%, and healthcare at 8.33%.
AI adoption gap
Law firms’ hesitancy extends beyond just client interactions. While the adoption gap is most pronounced in customer service contexts, the legal industry also trails in implementing AI for other use cases such as product development feedback and sales discussions. This cautious approach is likely driven by concerns or lingering questions about the unique liability risks associated with serving clients in the legal field.
The criticality of this AI adoption gap and its impact on the legal realm cannot be understated. Fortunately, nearly all legal leaders surveyed believe their firms will be impacted by not using AI technologies. Their primary concerns include increased labor costs (40.15%) and reduced competitive advantage (37.12%). These worries underscore the growing realization that AI adoption is becoming less of an option and more of a strategic necessity for law firms aiming to stay competitive.
Investment
Despite the current lag, there are signs of change on the horizon. A significant 97.73% of legal decision-makers anticipate an increase in AI investment over the next three to five years. This trend aligns with other industries, suggesting a growing recognition of AI’s transformative potential in the legal sector.
For law firms considering AI integration, it’s essential to approach adoption with a balanced perspective. While caution is warranted given the sensitive nature of legal work, completely avoiding AI could lead to missed opportunities for efficiency, accuracy, and improved client service. The key lies in identifying practical, value-driven AI solutions that address specific challenges while enhancing client experiences and driving practice growth.
Moving forward, law firms must carefully weigh the risks and benefits of AI adoption. By taking a pragmatic approach to integrating AI in business communications, the legal sector may provide valuable insights for other industries on how to balance innovation with caution. As AI continues to evolve, staying informed about these trends will be crucial for law firms looking to effectively leverage emerging tools and maintain their competitive edge in an increasingly tech-driven legal landscape.
Read the full report, The state of AI in legal communications, today.
Originally published Feb 10, 2025, updated Mar 04, 2025
