How can a small law firm keep up with AI?

Over the next three years, the biggest AI issues for small law firms are no longer abstract “future of law” questions, but very practical choices about tools, pricing, training, and risk. The firms that will do best will treat AI as a managed change program—iterating quickly to keep up with new capabilities, while putting simple but firm guardrails around security, ethics, and quality

In the next three years, AI tools will continue to move from standalone apps into the tools lawyers already use. That means even “late adopters” will encounter AI during normal work, whether or not the firm has an official AI program.

Surveys show most lawyers now expect their AI use to increase in the next 12–18 months, but small firms are still lagging in structured adoption and governance. At the same time, regulators, courts, and bar associations are rapidly updating guidance on technical competence, disclosure, and supervision, raising the risk for firms that adopt informally without controls.

What are some of the biggest practical challenges that smaller law firms face?

At Walker Clark LLC, we see many challenges for small and midsize law firms as they try to keep up with the pace of technological change in the legal services markets, and to a certain extent the relative impacts of those changes will be somewhat firm-specific. However, we have identified five challenges that every small and midsize firm should consider now — not three years from now.

1. Quick wins in efficiency and workload relief

Current surveys show lawyers rank “time savings and increased efficiency” as their most important AI benefits, especially in solo and small firms where lawyers shoulder more admin work. Narrow, well‑chosen tools for tasks like document drafting, email summarization, intake triage, and research can yield measurable time savings within weeks, not years.

For small firms (i.e., those with fewer than ten partners), these quick wins free up capacity for higher‑value work, faster turnaround, and business development without adding headcount. The key is to pilot AI inside existing platforms where lawyers are already working (e.g., research and practice management), reducing risk and training overhead.

2. Better client service and responsiveness

Clients are increasingly expecting faster communication, clearer updates, and more transparency about status and fees. This observation is supported by more than twenty years of research by Walker Clark LLC, which demonstrates that the two highest-value service indicators for law firm clients are responsiveness and partner availability. AI‑enabled intake, chat, document generation, and matter‑status tools can help small firms respond quickly and consistently, making a partner “virtually available” when otherwise engaged.

Over the next three years, firms that use AI to augment client touchpoints—while keeping legal judgment and relationship‑building firmly human—can differentiate on service quality. That can translate into better online reviews, more referrals, and increased willingness by clients to accept premium pricing for predictable, high‑touch service supported by efficient processes. All this produces client loyalty — the strongest competitive advantage of all.

3. Leveling the playing field with bigger competitors

Recent data shows that smaller firms are using AI to close gaps in research, drafting, and document review. Lightweight AI tools embedded in research and matter‑management give small firms access to sophisticated functionality that previously required large teams and custom systems.

In the next three years, a small firm that systematically deploys AI in a few core workflows can credibly compete for more complex matters or larger portfolios, especially where clients care about agility and partner access and even against larger, better-resourced rivals.

4. More predictable, value‑driven pricing

As lawyers use AI more, they gather better data about how long specific tasks and matter phases actually take, under realistic conditions. Combined with templates and standardized workflows, that data lets small firms offer flat fees and hybrid arrangements with more confidence in both profitability and scope.

Over the next three years, firms that move quickly toward transparent, outcome‑oriented pricing can convert AI‑driven efficiency into competitive advantage rather than margin erosion. This also positions the firm well if courts or clients increasingly push back on time entries that could have been completed faster with commonly available tools.

5. Building a stronger, tech‑confident culture

While small firms often lack formal innovation programs, they can move faster culturally because decision‑makers are closer to the work. A modest but well thought-out AI program—clear policies, small pilots, regular debriefs—can build a culture where lawyers and staff feel comfortable experimenting within guardrails that protect profitability and compliance with ethical standards.

That culture becomes an asset in recruiting, retention, and client development, signaling that the firm is modern, adaptable, and serious about using technology to serve clients better. In a three‑year horizon, this is as much a branding and leadership opportunity as a technical one.

How can a small firm, with limited resources, keep up with AI-produced change without being burned by it?

Here are several ideas to consider.

1. Adopt a “small, steady, strategic” approach.

Industry analyses emphasize that successful firms treat AI adoption as a series of targeted, measurable projects rather than a one‑time transformation. For small law firms, a practical approach is:

• Pick 2–3 high‑impact use cases only (for example, research, intake, litigation document drafting) and ignore everything else initially.

• Prefer tools integrated into existing platforms to reduce training and context‑switching.

• Decide in advance how success will be measured (time saved, fewer write‑offs, faster response times) and review quarterly.

This cadence lets the firm benefit from rapid improvements in tools while avoiding constant wholesale changes.

2. Put simple guardrails around risk.

Recent commentary on malpractice risk stresses that consumer‑grade tools can turn cost‑saving measures into career‑ending liabilities if used without controls. Small firms can materially reduce risk with a short, written AI policy that covers:

• Approved tools and where they may be used (for example, no client identifiers in consumer chatbots; only vetted, enterprise or legal‑specific tools for client content).

• Confidentiality and security rules, including how to handle uploads and what settings must be enabled.

• Supervision standards—who must review AI‑assisted work, what must be double‑checked, and how to document human oversight.

• Requirements for compliance with any court‑ or client‑specific AI orders, including disclosure of AI use where required.

Pairing this policy with brief, recurring training helps lawyers satisfy their growing technical‑competence duties without needing in‑house specialists.

3. Create an internal “AI playbook” and keep it updated.

Because AI capabilities and rules are evolving quickly, static manuals age fast. A better fit for small firms is a lightweight “AI playbook”: a shared document that lists approved use cases, prompts, red‑flags, and examples, updated a few times a year by a designated partner or small team.

This playbook can link to vendor documentation, bar guidance, and court decisions, giving lawyers a central reference for both capability and risk. A quarterly — or at least semi-annual — habit of updating the playbook is one of the most pragmatic ways for small firms to “keep up” without constantly reinventing their risk management processes and protocols — or, worse yet, blundering into a fast-changing future with less and less reliable operational guidance for well-informed decisions.

4. Leverage external guidance and communities.

You are not alone.

Small firms do not need to track every AI development alone. Bar associations, courts, and reputable vendors now publish regular guidance, checklists, and model policies on AI use and risk. Participating in local or practice‑area‑specific AI user groups, webinars, and listservs can give small firms curated, contextual insight into what is working for similar practices.

Over the next three years, leaning on these external resources—rather than ad‑hoc internet searches or vendor marketing alone—will be critical to staying informed without burning excessive non‑billable time.

5. Align AI decisions with the firm’s strategic priorities.

Finally, keeping up without overreacting requires tying AI choices to the high-priority components of the firm’s strategy, such as target clients, key practice areas, and desired market positioning. For example, a small firm that focuses on high‑stakes litigation will prioritize different AI investments than a volume‑driven consumer practice, even though both use AI and even many of the same applications.

By asking, “Does this help us serve our best clients better, or reach the clients we most want?” before buying or piloting anything, smaller firms can avoid chasing every novelty. In a rapidly evolving AI environment, that strategic discipline is what allows them to move fast enough to stay competitive while still protecting clients, reputation, and profitability.

How can Walker Clark help you?

For more than thirty years, Walker Clark members have been advising law firms, corporate law departments, and government legal agencies on how best to integrate new technology into their practices and to manage the changes it produces. To learn how we might be able to help your practice, use the secure email contact link at the botton of this page to schedule a complimentary, strictly confidential, consultation with a senior member of our team.