High Initial Costs and Implementation Challenges of AI for Small Law Firms

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Challenge: High Initial Costs and Implementation Challenges

A 2023 Thomson Reuters report suggests that small, agile law firms are in an excellent position to use generative AI-based tools and products to compete with larger, resource-rich law firms in ways that were previously impossible.

However, the high initial costs and implementation challenges remain significant barriers for small law firms and sole practitioners, more so than for BigLaw.

Industry research conducted by Genie AI on 79 Legal AI, LegalTech, and AI tools revealed that only one-third of these tools publicly disclose their pricing on their websites.

Many AI capabilities are increasingly embedded in products that lawyers at small firms are already using, which may help mitigate some of the implementation challenges. To determine if the investment is worthwhile, firms should utilize ROI calculators or conduct their own cost-benefit analysis.

The procurement process could be particularly challenging for smaller firms, who may benefit from tools offering freemium plans or trial accounts.

"Once you decide to implement Legal AI software, it is never an easy or straightforward process, that is one of the drawbacks"

Aleksandra Kozikowska, Solicitor (Construction and Engineering), UK

While Software as a Service (SaaS) tools in other industries have embraced product-led growth (PLG), this approach is not yet widespread in the legal SaaS sector. PLG relies on product usage to drive adoption, reducing dependence on traditional sales processes.

Notable examples of PLG in the legal tech space include Genie AI, which has acquired 100,000 users without marketing spend, and legal automation tools like Logikcull and HelloSign by Dropbox.