With the rapid advancement of artificial intelligence (AI) technology, the legal industry is witnessing transformative changes that have the potential to alter traditional business practices significantly. Robert Taylor, chief executive and general counsel of 360 Law Group, has raised concerns that many legal firms are not passing the savings generated by technological innovations onto their clients.
In a statement shared with the Law Gazette, Taylor highlighted the company's new AI tool designed specifically for reviewing contracts, which reportedly reduces the time lawyers spend on these tasks by up to 50%. The financial implications of this efficiency are notable; Taylor mentioned that the cost for reviewing a non-disclosure agreement (NDA) could drop to as low as £20, while a more comprehensive master services agreement might be charged at £75.
Despite the evident savings from AI implementations, Taylor pointed out that most legal firms continue to charge fees similar to those applied before the introduction of these technologies. "Whilst other law firms may use AI to save time, they still charge the high fees as if the work was being carried out by a human lawyer," Taylor stated. He emphasised the mission of 360 Law Group: "We want the AI to really benefit our clients as well as our lawyers. We will offer transparent pricing, charging for AI usage at cost with a modest margin."
Established as a disruptor in the legal sector, 360 Law Group comprises two separate entities—one regulated and one unregulated—with a substantial workforce of 600 lawyers worldwide. Within the UK market, their team comprises 85 solicitors specialising in various legal areas, with the exception of criminal law.
The firm has introduced a specialised service, LawLink, which facilitates the review of contracts and NDAs, exclusively available to clients who choose to opt in. This innovative tool utilises a red-amber-green risk assessment system to streamline the legal review process. Contracts classified as green are approved for direct client signing, while those flagged as amber or red are further scrutinised and potentially redrafted by legal professionals.
Taylor reiterated that the focus of this technology is not to replace lawyers but rather to empower them, enabling legal experts to dedicate more time to complex issues that necessitate nuanced human understanding and skill. “The AI will make our legal services even more accessible and affordable. It will be especially beneficial for our clients with a high volume of contracts to review,” he noted.
Moreover, Taylor expressed confidence that this pioneering service will distinguish 360 Law Group in the crowded legal marketplace, granting them a competitive edge. He elaborated, “Rather than reduce their workload, it will open doors to new opportunities with larger, more complex clients.”
The developments within 360 Law Group reflect broader trends in AI and automation across various sectors, indicating a potential shift not just in how legal services are delivered but in the overall business model of the legal profession. These changes raise questions about the future landscape of the industry and the relationship between technology, cost efficiency, and client service.
Source: Noah Wire Services