AI in Law Firms: From Experimentation to Real Impact

This is the third article in the series Bridging the Gap: From Legal Ambition to Operational Reality.

Artificial Intelligence has quickly become one of the most talked-about topics in the legal sector (or any sector, for that matter). Every conference agenda features it. Every legal technology provider has an AI story. Every law firm is asking the same question: “How do we make AI work for us?”

The challenge is that, while interest has accelerated rapidly, implementation has not.

Many firms have experimented with AI tools. Few have embedded them across the business. The conversation has shifted beyond whether AI has a place in legal practice; it is now about how firms can adopt it safely, responsibly, and in ways that genuinely improve how they work.

The firms seeing the greatest success are not chasing every new AI innovation. They are building thoughtful strategies that balance opportunity with governance.

The Gap Between Excitement and Execution
Australian and New Zealand law firms recognise AI’s potential. From legal research and drafting through to knowledge management and administrative support, the opportunities are significant.

Yet adoption remains uneven. Concerns around privacy, governance, data security, and professional responsibility continue to slow firm-wide implementation.

Donna Broadley, General Manager, APAC at Xperate, says, “The legal sector has moved beyond asking whether AI is important. The real question now is how to introduce it in a way that people trust, and that is where many firms are still finding their feet.”

This caution is not a weakness. In fact, it is entirely appropriate. Law firms hold highly sensitive client information. They operate within strict ethical and regulatory frameworks. Taking a measured approach to AI is not about resisting innovation; it is about protecting clients while responsibly embracing it.

Not Everything Labelled AI Is Actually AI
One of the biggest misconceptions surrounding AI is that every intelligent workflow falls into the same category. In reality, firms often confuse Artificial Intelligence with automation, even though they solve very different problems. Automation removes repetitive administrative work:

• Automatically generating documents
• Triggering workflows
• Routing approvals
• Updating client records
• Sending notifications

Artificial Intelligence, meanwhile, supports professional judgement by helping lawyers:

• Analyse information
• Summarise documents
• Generate first drafts
• Surface relevant knowledge
• Explore different legal arguments

“Automation helps people do work faster. AI helps people think differently. The biggest gains come when firms understand where each technology adds the most value,” says Donna.

The distinction matters because many firms can achieve immediate productivity gains through automation while introducing AI more selectively where it genuinely enhances legal expertise.

Governance Before Innovation
One of the biggest mistakes firms can make is introducing AI before establishing clear policies. Without governance, even well-intentioned use can introduce unnecessary risk.
Questions every firm should be answering include:

1. Which AI platforms are approved?
2. What client information can be entered?
3. How should outputs be verified?
4. Where does professional responsibility remain with the lawyer?
5. How will usage be monitored?

Donna says, “Governance should not be seen as putting the brakes on innovation. It gives people the confidence to innovate because everyone understands where the boundaries are.”

When expectations are clear, adoption becomes much easier.

If You Do Not Provide AI, People Will Find Their Own
One reality many firms are now recognising is that lawyers are already using AI. Whether it is ChatGPT, Copilot, Gemini, or another publicly available tool, professionals naturally look for ways to work more efficiently. Simply banning AI rarely works.

“People do not wake up thinking they want to break policy. They want to solve problems quickly. If firms do not provide trusted tools, people will naturally look elsewhere,” says Donna.

This is why secure, enterprise-grade AI environments are becoming increasingly important.

Approved platforms provide:

• Stronger data protection
• Better governance
• Greater transparency
• Confidence that client information remains secure

Rather than preventing innovation, they enable it safely.

The Best AI Does Not Replace Lawyers – It Elevates Them
Despite the headlines, AI is not replacing legal professionals. Instead, it is helping them spend less time on low-value activities and more time delivering strategic advice. The most successful firms are using AI to:

• Create first drafts that lawyers refine
• Summarise lengthy documents
• Accelerate legal research
• Retrieve internal knowledge faster
• Support junior lawyers with guided learning

Start Small. Learn Fast. Scale Carefully.
Perhaps the biggest lesson emerging from early AI adoption is that firms do not need a sweeping transformation programme from day one. The organisations making the strongest progress are taking incremental steps:

1. They identify one or two high-value use cases.
2. They measure outcomes.
3. They gather feedback.
4. Then they expand.

“AI adoption is not a race to implement the most tools. It is about solving real business problems one step at a time and building confidence as you go,” says Donna Broadley.

From Curiosity to Capability
The conversation around AI is maturing. It is no longer enough to say a firm is “using AI.” Increasingly, clients, regulators, and employees want to know how it is being used, how data is protected, and what governance sits behind it.

The firms that will lead over the next decade will not necessarily be those with the most sophisticated AI platforms and toolkits. They’ll be those with:

• Clear policies and governance
• Secure, approved AI environments
• Practical use cases aligned to business objectives
• A focus on augmenting lawyers rather than replacing them
• A culture of continual learning and responsible innovation

Donna says, “The winners will not be the firms that adopted AI first. They will be the firms that adopted it with purpose. Ultimately, AI, and any other emerging technology, should never be used just for the sake of it. The real value lies in making lawyers more effective, firms more efficient, and clients better served.”

Author Profile

Donna Broadley is a highly respected SaaS and legal technology leader with more than 20 years of experience across Australia and New Zealand. As General Manager, APAC at Xperate, she leads the firm’s expansion across the region, working closely with ambitious law firms to bridge the gap between technology potential and operational reality.

Read the previous articles in the series:  AML Compliance: A Competitive Edge for Law Firms, and Why ‘Almost Digital’ Is Costing Your Firm.

Next in the series, Client Expectations Have Changed, But Law Firm Operations Have Not, explores why communication, visibility, and connected systems have become the new competitive advantage for law firms.