According to the International Bar Association's (IBA) Future of Legal Services Commission (FLSC), artificial intelligence (AI) is a crucial topic that the legal profession needs to focus on more in the short-term. However, research undertaken by the FLSC reveals that many lawyers view AI as 'next year's problem' and not one that requires priority attention.
The FLSC's second annual report, titled Future of Legal Services - White paper 2024 , concludes that the international legal community lacks preparedness and understanding of the threats and opportunities presented by AI.
Drawing on research conducted between May 2024 and July 2024, the FLSC aims to support lawyers' understanding of - and readiness for - the global issues affecting legal services in the short, medium and long term.
The FLSC looked at the challenges and changes around client demands; new entrants in the legal sector; regulatory changes and education; digitalisation and technology; and finding the equilibrium between work and personal life.
Another perceived longer-range issue was environmental, social and governance (ESG); although, compared to 2023, lawyers felt more equipped to deal with the required actions in 2024 regarding the need for diversity, equality and inclusion in the profession and the impact of climate change on business models. According to the 2024 data, survey respondents were less concerned about obstacles to accessing justice and challenges to the independence of the legal profession.
The report is grouped around the four key themes of people, clients, business and the rule of law. Under the four primary themes, the report identified 17 key areas to which lawyers need to respond:
People | Clients | Business | Rule of Law |
---|---|---|---|
The drive for equality, diversity and inclusion at all levels of the legal profession. | Meeting client expectations around the use of AI and legal technology in the delivery of legal services. | The emergence of new unregulated entrants to the legal services market, including legal tech specialists. | Challenges to the independence of the legal profession, including the judiciary. |
Mental health and wellbeing within the legal profession, including concerns such as work/life balance. | Globalisation and increased volumes of transnational client work. | The impact of climate change and other environmental concerns on business models for the delivery of legal services. | The use of AI on dispute resolution and the delivery of justice. |
Change management and training of people in relation to adoption of AI-based technologies. | Increased demand for the provision of multiple services from a single provider including legal and non-legal work, e.g. financial services. | Addressing concerns of stakeholders outside of the business, including employees, government, and wider society. | Limitations on access to justice including economic and social inequality. |
Attracting and retaining talent, including employee desires such as remuneration, remote working, and social impact. | Client desires for demonstrable commitment by legal services providers to the environmental, social, and governance (ESG) agenda. | The deployment of AI and other legal technologies to streamline the delivery of legal services and enhance business performance. | Impact of domestic/international political uncertainty on the legal/regulatory environment. |
Increased focus on financial performance and profitability. |
IBA members from all six IBA regional fora - Africa, Asia-Pacific, Europe, Latin America and North America and the Middle East - as well as from a variety of legal backgrounds, including lawyers, judges, law students and business professionals, responded to the survey. The views of non-IBA members are also represented in the research.
Soledad Atienza, Co-Chair, Future of Legal Services Commission and Dean of IE Law School in Madrid, Spain said: 'Predicting future issues is a key challenge for law professionals servicing clients and offering advice. The work of the FLSC is intended to be useful to law firms, judiciaries and academic institutions worldwide, and with a global heatmap, benchmarks and risk assessments, the report is designed for practical use and guidance.'
Ms Atienza added, 'The regional diversity and range of experience of the respondents are particularly important and can be used to focus on a specific region or age group to understand better the conclusions of the report.'
Christopher Howard, Co-Vice Chair, Future of Legal Services Commission and University Partnerships Director at BARBRI Global , remarked: 'It has been a privilege to assist with the compilation of this important report. The survey provides a litmus test of the key issues facing the profession worldwide and will assist lawyers at every level in their responses to these major concerns.'
Hideaki Roy Umetsu, Co-Vice Chair Future of Legal Services Commission and managing partner of the New York office of Mori Hamada & Matsumoto , added: 'It is wonderful that this report covers every region including Asia-Pacific, and provides insights to allow different jurisdictions to learn from each other as they face down global challenges. The report provides an essential guide to the range of global issues to which lawyers need to respond.'
Formerly known as the IBA Task Force on the Future of Legal Services, the FLSC is tasked with annually analysing and reporting on the state and evolution of the legal profession and offering predictions as to what the legal profession could become in future decades.
In due course the FLSC will recommend how to respond to challenges affecting the legal profession and design projects and programmes to prepare the profession for the future.
Details of how to participate in the 2025 survey will soon be available on the FLSC homepage .