Highlights
- Legal AI adoption is shifting from experimentation to strategic systematization, driving sustainable competitive advantage for law firms.
- Firms that move beyond pilot projects to scalable AI-powered workflows will differentiate themselves in a rapidly evolving market.
- The window for gaining a competitive edge with legal AI is closing as adoption becomes mainstream across the industry.
Most lawyers at your firm are already using AI.
Some are doing it quietly, with free tools they found themselves. Others are part of official pilots that leadership greenlit six months ago. A handful are genuinely transforming how they work. But here’s the problem: almost none of it is connected.
That gap between individual experimentation and firm-level strategy is where most law firms are stuck right now. And it’s a more dangerous place to be than it looks.
Legal AI has moved fast. The question is no longer “will lawyers use it?” but “which AI tools are they using?” While firms celebrate early wins from pilot projects, a more critical question is emerging: how do you move beyond scattered experimentation to build something that actually compounds into competitive advantage?
The answer lies in understanding that most firms are stuck in the first wave of AI adoption, and strategic systematisation is the key to transformation.
To explore this transformation journey, we spoke with Tom Snavely from the Thomson Reuters Transformation Services team. Tom previously helped grow the Thomson Reuters Institute team, where he developed relationships throughout our global large law firm market working with clients on their firm strategy.
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The strategic imperative: Why timing matters
Wave 1: Experimentation
Most firms are in the experimentation phase, driven by external pressures that no longer allow for passive observation. Corporate clients are demanding AI capabilities from their legal advisors, whilst AI-enabled competitors are already demonstrating measurable efficiency gains.
This drives widespread experimentation. Firms are launching pilot projects focused on specific tasks: contract review accelerates, due diligence becomes more efficient, and discovery processes are streamlined. These tactical wins are real and measurable. Legal professionals anticipate saving 5 hours per week, equating to 240 hours annually.
However, a critical barrier prevents advancement:
“One of the biggest barriers is not thinking of AI in terms of a strategic and holistic approach. These tools are so incredibly different than other tools that firms have approached in their history. One of the key things that we really look at when we’re working with firms is, have they set a strategic approach? Have they established how AI supports the firm’s overall strategic direction? Did they create a vision? How are they going to differentiate themselves with AI? And more importantly, how are they going to bring their partners and the rest of the firm along?”
The limitation is becoming increasingly apparent. Disconnected tools don’t create sustainable competitive advantage. Ad hoc adoption without strategic framework may deliver immediate efficiency gains, but it fails to address the fundamental question of how AI at scale can transform legal service delivery at scale.
Many firms struggle with measuring true value beyond efficiency metrics:
“Most firms don’t actually capture return on investment in a way that is strategic. Most of the firms that we’ve worked with and even Thomson Reuters Institute data shows that most firms are capturing measures in terms of internal satisfaction, how many times are people are using these tools, which in turn does not exactly hit the bottom line for these firms or create opportunities.”
Wave 2: Systematization
This systematization wave represents the near future for forward-thinking firms that will define the next phase of legal practice by moving from tactical tool adoption to strategic AI at scale deployment. This represents a fundamental shift from “let’s try this” to “this is how we work.”
The distinguishing factor between firms that advance and those that remain stuck is clear:
“So, it’s the strategy. I think that’s the big piece that we’re seeing. And way back when we started with piloting AI readiness, that was really clear. The firms that had a strategy and a well-communicated strategy were excelling compared to those who did not.”
Systematisation requires deep investment in both technology and change management. Based on what Thomson Reuters Transformation Services sees across firms, the difference between firms that systematize successfully and those that stall tends to come down to a handful of behaviors.
What sets successful firms apart:
- They appoint a named owner for AI strategy. Not just a committee, not just a working group, but a person accountable for outcomes.
- They define success in revenue and client terms, not just usage metrics or satisfaction scores.
- They communicate the “why” to partners early and repeatedly, before rollout, not after resistance appears.
- They build feedback loops so that what lawyers learn using these tools in practice actually shapes how the tools are deployed firm wide.
- They treat training as ongoing, not a one-time onboarding event.
However, firms often underestimate one critical component:
“Change management is so important. And that’s one thing that we’ve seen too in this phase that really does separate the ones that are doing it well is that they have a strategic change management approach. It’s so critical for any organization, and especially for a partnership.”
Partnership dynamics require careful navigation when implementing new initiatives:
“One of the things that we really look at in change management approaches is, have you built the right desire for change? And then that’s a lot of communication. Lawyers want to make sure that they understand how these tools can help them, how these tools will please their clients and make them satisfied.”
Market differentiation emerges here. Small firms gain leverage against larger competitors. General counsels begin insourcing more work. Standard legal work becomes productised, creating new service delivery models that weren’t previously viable.
The data supports this strategic approach. Organisations with an AI strategy are 1.9 times as likely to already be experiencing revenue growth compared to those adopting AI informally. This isn’t coincidental. It reflects the compound benefits of systematic implementation over scattered experimentation.
Wave 3: Transformation
Within five years, the transformation wave will reshape the industry. AI becomes invisible infrastructure, as ubiquitous and essential as email is today. The way legal services are bought and delivered undergoes complete overhaul, with firms creating innovative models that combine technology with human expertise.
Each firm’s innovation journey reflects its unique culture, but time-sensitive decisions loom:
“Each firm has their own culture. Some of the firms we work with, they want to be in the cutting edge. That’s part of their culture. But there’s a certain amount of strength with firms that have held back a bit. Perhaps they’re surveying and understanding the landscape in terms of tools and approaches, playing wait and see, but the window is closing very quickly.”
In this transformed landscape, LLMs and niche data become key differentiators. Market winners and losers emerge clearly. There’s an explosion of legal DIY solutions for routine work, new AI-led market entrants challenge traditional models, and established firms must adapt comprehensively or risk marginalisation.
The firms that reach this transformation wave aren’t just keeping pace. They’re leading the market through systematised workflows and scalable services that competitors simply cannot match.
This transformation preserves what’s essential about legal practice while eliminating administrative burden:
“Some of the exciting things that I’ve seen with AI uses is that it really frees up the lawyer to do things that are more lawyer-like. If you look at a lawyer’s day, often times there’s a ton administrative tasks. We’ve all become used to them. It’s just part of our world. But it really frees them up to do the things that lawyers are great at, which is strategic legal work for their clients.”
The strategic imperative: Why timing matters
The window for gaining competitive advantage through AI adoption is narrowing. Research shows that 53% of organisations are already experiencing AI benefits, but these advantages become increasingly difficult to achieve as the technology becomes mainstream.
For legal leaders, the question is no longer whether to adopt legal AI, but how quickly and effectively you can implement it strategically. The decisions made now determine future market position.
The foundation for successful transformation requires honest self-assessment:
“For firms it is having a clear understanding of where they’re at today. And, being very honest with themselves about where they are today allows a firm to chart a clear and actionable path forward. And the firms that I’ve worked with that have been honest for themselves have done much better than those that are projecting a different view of success.”
The choice is stark. Lead the transformation or be transformed by it.
Your path forward
Legal AI has moved decisively beyond experimentation to become a strategic imperative. The firms that successfully transition from tactical pilots to systematic implementation will establish sustainable competitive advantages that compound over time. The window for competitive differentiation through strategic AI deployment remains open, but it’s closing rapidly.
Don’t just keep pace—lead the market. Discover how CoCounsel Legal UK can give you a competitive advantage today.
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Tom Snavely is a Principal Consultant in the Transformation Services Team, bringing over 25 years of experience leading strategic transformation initiatives across many industries. He spent more than a decade in a senior leadership role on the Strategy Team at an AmLaw 50 law firm, where he helped shape and execute firmwide priorities.
Tom works closely with law firm executives on high-impact initiatives, including AI strategy and readiness, firm growth strategies, combinations, client feedback programs, talent retention, and service excellence.
His work spans all legal practices and business operations, driving revenue growth and operational efficiency through innovative and often innovative approaches.His methodology focuses on delivering clarity and actionable insight through objective client feedback, performance analysis, and market intelligence.
Tom holds an MBA from the University of St. Thomas and is a frequent speaker at industry webinars and conferences, where he shares practical strategies for aligning organizational culture with strategic goals.
