The Singapore Law Gazette

A Memo to Law Firm Leaders: Will Your Firm Be Left Behind?

This article is inspired by Richard Susskind’s latest book, How to Think About AI: A Guide for the Perplexed¹Richard Susskind, How to Think About AI: A Guide for the Perplexed (Oxford, Oxford University Press, 2025).

The book prompted a reflection on how senior lawyers, managing partners and law firm leaders should think about artificial intelligence (AI).

AI is no longer a distant disruption. It is already reshaping how legal services are delivered, how clients evaluate value and how younger lawyers expect to work.

Yet many law firms remain uncertain about what to do next. Many are still operating the same way they did a decade ago. Not surprising as change is hard, especially with legal practice. Should they wait and see? Or should they trust the AI tools and invest in them now?

In the meantime, clients are evolving, regulators are modernising and technology is accelerating.

Firms that hesitate may find themselves edged out not because they lack talent, but because they delayed too long to adapt. The risk is no longer about jumping onto the AI bandwagon too early. It is about standing still for too long.

The Real Risk is Not AI — It is Irrelevance

For most law firm leaders, the instinct is to protect what works – a successful business model, reputation and long-standing client relationships. However, what worked in the past may not be enough for the future.

Many clients are already experimenting with alternative legal service providers and AI tools. While they do not expect these to replace lawyers, they do expect better value, speed and flexibility from their lawyers.

Therefore, the biggest risk is not about adopting the wrong AI tool, but becoming gradually irrelevant, slower, less competitive and increasingly out of sync with how clients and markets are evolving.

The Thomson Reuters Future of Professionals Report 2025 ²Thomson Reuters Future of Professionals Report 2025 noted three key findings – AI is already boosting productivity, early AI adopters are pulling ahead, and a clear AI strategy is key.

The question now is not if your firm will adopt AI. It is how, when and to what end.

What AI is (and is Not)

AI is not the magic bullet. The current AI technology improves the productivity of tasks such as

• contract review
• clause comparison
• legal research
• compliance tracking
• client intake/KYC
• summarising judgments or transcripts

However, it does not replace strategic thinking, relationship-building or ethical oversight. This means firms need to redesign how work gets done.

Leadership Questions

Too many discussions on AI in law are centred around hype and hesitation. Instead of focusing too much on the foregoing, consider these questions:

1. Strategy: Which part of your legal work is truly bespoke?

Not all legal tasks need a lawyer. It is crucial to differentiate between high-value advisory work and routine process work, to avoid being overtaken by more agile players. Consider the following:

• What is your competitive edge? If another law firm using AI tools undercuts your pricing tomorrow, how would you respond?

• Are you using AI just to chase trends?
• If you started your firm today, how would you structure it for a digital-first world?

2. People: What will the lawyer of the future look like?

Junior lawyers are not redundant. However, their development path is changing. AI must be used such that it does not hollow out training and future talent. Consider the following:

• Are your lawyers prepared to work with AI, to assess and improve its output or are they overwhelmed by it?
• Are your younger lawyers being mentored to develop human judgment, not just edit machine output?
• Are you building a team that will be relevant five years from now or just maintaining the past?

3. Risk: Who is responsible for AI output?

If AI is now part of your firm’s processes, your risk framework such as engagement letters and internal approval processes needs to be updated. Consider the following:

• Do you understand how the AI tools your firm uses actually work? Can you explain them to clients or regulators?
• How do you deal with liability if AI gets something wrong and a client suffers loss?
• Should you disclose when AI is used in drafting, review or advice?
• Are your risk, ethics and client policies keeping pace?

4. Execution: Are you piloting or procrastinating?

“Let’s wait and see” is not a strategy. The firms that will lead tomorrow are experimenting today. Not everything needs a formal project or major investment. Consider the following:

• Have you identified low-risk areas (e.g. NDAs, internal summaries) where AI can be tested?

• Is there a clear success measure before investing in AI or is it a vague “we need to modernize” agenda?
• Are tech discussions happening at partnership level?
• Is there a clear process for experimenting and learning from AI tools or just waiting for clarity that may never come?

5. Vision: What kind of firm do you want to be?

There is no need for your firm to become a cutting-edge legal tech law firm.

However, how your firm is postured matters to clients, talent and the market. Are you adapting? Or holding on? What are you choosing to preserve, and why? Consider the following:

• Are you a cautious adopter, a smart follower or a pioneer in legal innovation?
• What kind of clients do you want to attract and how will they expect you to use AI?
• What are the red lines on AI in your firm? Under what circumstances should AI not be deployed?
• What values guide your AI decisions? Is it speed, trust or something else?

Adopting AI is Not About Reinvention

This article is not a call for wholesale adoption of AI and the reinvention of the business of law. It is a call for law firm leaders to think about how to adopt and adapt to AI.

The cost of waiting is rising. Adapting does not mean abandoning what has worked but it means being willing to question it.

The best performing firms will not necessarily be the most automated, biggest or flashiest. However, they will be the most intentional. They would have asked the hard questions early, clarified what they want from AI and what they will not compromise.

Finally: What You Can Do Now

What can you do if:

• you are time-strapped and risk-averse;
• do not have a dedicated tech team;
• sceptical of AI and overwhelmed by the jargon;
• think “we are doing fine as we are” but is vaguely aware that change is happening.

Try this:

• Have a conversation in your firm about AI. There is no need for a workshop or consultant. Just raise the topic at your next partner or team meeting.
• Discuss what AI can (or cannot) do for your firm or practice. Knowing what matters most will help you decide what can evolve and what should stay the same.
• Discuss one thing where the firm/practice is open to improving using AI. Change does not mean throwing everything out.
• Pick one task to test AI and see what it is capable of. Try something low risk such as NDAs or contract summaries. Start small but start somewhere.
• Ask your juniors if they are already using AI. Many probably are. If they are using it, you need to know how and whether it is affecting work quality or risk.
• Start internal discussions about skills the next generation of lawyers need, for example, use AI to assist, not replace learning.