Lawyers have welcomed UK government-backed “AI Growth Labs” to build and test AI technology for the legal sector, including tools to speed up conveyancing during property sales.
The Ministry of Justice said the labs will enable innovative AI software to be tested securely and released to the market sooner. It will work with lawyers and liaise with regulators to make it easier to introduce new legal AI.
As part of a wider effort to encourage the use of AI in UK business, the UK government also announced an “AI adoption plan” for professional and business services, led by Shaheen Sayed, chief commercial officer at consultancy Accenture.
Professional and business services is expected to be one of the UK sectors most affected by automation, Sayed said in a report. About 14% of roles are at risk of substitution and 53% likely to be “significantly augmented”, the report said.
AI Growth Labs will open later this summer, including for legaltech companies, legal service providers and conveyancing companies. It will be rolled out to other sectors later this year, the government said.
Deputy Prime Minister and Lord Chancellor David Lammy said despite the legal sector being a “cornerstone” of the UK economy, contributing over £40bn a year, it has been held back by “analogue systems”.
Legal services has been chosen as the first sector to benefit from the pioneering growth project, reflecting strong demand from the industry and clear evidence that smarter regulation can deliver breakthroughs, the government said.
Ian Jeffery, chief executive of the Law Society of England and Wales said: “The AI Growth Lab has the potential to boost innovation by allowing legal service providers to safely test AI tools against the profession’s current robust legal standards.”
He added that lawyers needed clear guidance on how the existing regulatory framework, particularly relating to data security, oversight, reserved legal activities and professional responsibility, can be maintained as AI use grows.
Legora, one of the largest legal AI start-ups, valued at about $5.5bn, said it welcomed the government announcement.
“We see London becoming a key hub for AI and legal technology and this announcement supports that direction.”
Legora opened a London office last month. It plans to open offices in Madrid, Milan and Paris by the end of September.
Not everyone was impressed with UK government’s legal AI plan, however.
Weston Wicks, senior director in the legal and compliance team at research company Gartner, said: “I’m not sure why the UK government needs to set up AI labs to help legal tech startups. If the entrepreneurs or law firms want to build and test their technology, why would they need an AI lab setup by the government?”
He added: “I personally don’t think it will move the needle in legal technology. In my opinion, new startups would likely be better off working with Y Combinator or another private startup incubator.”
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