What to expect in 2024: UK law firms will focus on downsizing space, and upsizing AI, sustainability and wellbeing

February 26, 2024

Law firm leaders and industry experts joined together for a thought-provoking panel discussion at Williams Lea’s first Legal Operations and Administration Forum (LOAF) of 2024, hosted at Herbert Smith Freehills in London. Moderated by Chris Bull of Edge Consulting, the panelists included Clare Hart, CEO, Williams Lea; Mark Blakemore, COO, Freeths; Andy Bradshaw, Director of Property & Workplace, DLA Piper; Phil Morton, Workplace Specialist, Morton Property Consultants; George Pantelides, CAO, Dechert; and Nicky Sinker, Carbon Specialist, Auditel.

The interactive event, which included live polling from an audience of operational and administrative law firm leaders covered a range of topics, including reshaping the size and layout of law firm offices, the use of artificial intelligence (AI), and the impact of sustainability on the legal industry. The live poll results along with the valuable insights from the panelists revealed interesting learnings on the current state and future direction of the UK legal industry. Here are the top three takeaways:

Law firms are downsizing their physical footprint, but not necessarily reducing real estate spending

In the live poll, 64% of the audience agreed that in most locations, their firm will look to downsize their office footprint over the coming years. Many firms are consolidating their offices and focusing on higher quality, more efficient spaces. However, the panel pointed out that this does not always result in savings, as law firms are also investing in technology and innovation to reduce their carbon footprint and improve efficiency of office space usage. In the poll, 60% of the audience also agreed that providing spaces and support designed to improve well-being across their diverse employee population is a growing issue for law firms, indicating that there is a shift towards more flexible spaces and law firm staff, in particular associates, will expect more free choice. The panelists agreed that providing environments that respond to individual needs, from providing better social and collaborative spaces, hosted events, meetings, and informal get-togethers, to other factors such as air quality, lighting, and temperature control.

Artificial intelligence is being increasingly adopted by law firms

Many firms are investing in AI enabled technology to drive efficiency in their operations. However, the adoption of AI varies widely among firms, with some firms taking a more cautious approach. The polling also showed that 83% of the audience said that they are increasing their investment in AI this year, and 81% said that AI will provide new data insights and solutions to help improve efficiency and reduce spend. Clare Hart highlighted that it is important for law firms to focus first on the value AI innovation will deliver, such as freeing up time for more billable work, or improving the accuracy of legal work which will ultimately improve service to clients and profitability.

“Clients are looking for their providers (like Williams Lea) to come back with examples of how we can help them apply technology to deliver  speed, accuracy and efficiency,” said Clare Hart. “We bring our value to clients through our ENGAGE technology, which is a platform where you can get more efficiency for managing processes because it’s a technology that manages the chain of custody. Our second area is AI-enabled technology, ENGAGE Transcribe, which can provide accurate transcription and dictation much faster and more efficiently. Our next service will be ENGAGE Translate to help meet the challenges of our global clients.”

Law firms will need to start the journey to net zero as soon as possible

Sustainability is a growing issue for law firms as many are feeling increased pressure from clients, employees, and regulators to reduce their carbon footprint and improve their sustainability practices. It’s no surprise that 86% of the audience agreed that sustainability is a bigger issue for them this year. However, almost half (44%) said they had no defined target date to reach net zero.

Nicky Sinker spoke about how client demands, regulation, talent, and financial pressures are combining to force firms to reduce their carbon footprint and improve sustainability practices including measuring and reducing their carbon emissions, as well as focusing on sustainable supply chain management. “Clients are asking for more information as they manage the sustainability of their supply chain. They want to know if law firms have measured their carbon footprint and if they have targets. If you haven’t had that yet, you will probably be receiving these requests very soon,” said Nicky. “Young talent also really wants to work with organizations who are doing the right things around the climate emergency.” She also highlighted that the benefits go beyond helping the environment, demonstrated by businesses who have been focusing on energy efficiency years prior, “There are savings that (law firms) can achieve as part of a net zero journey.”

In addition to the changing office space landscape, increasing AI adoption, and prioritizing sustainability, there were additional insights on spending and procurement, law firms’ current hybrid working stance, and right sizing secretarial and administrative support. To find out more, download the results of our LOAF Poll here.