Firms are using AI tools for contract review and analysis, due diligence, legal research, drafting, predictive legal analytics, knowledge management and automation. Additionally, AI is being leveraged for litigation support, flagging risks, legal database querying and retrieval, email retrieval, summarisation, and translation.India's top law firms are taking to AI-powered tools to ramp up efficiency, accuracy, time saving, cost reduction, and client satisfaction to stay competitive. The technology is reshaping core processes by automating routine tasks, enabling firms to focus on higher-value advisory work with the ability to predict outcomes and deliver personalised client insights, legal executives said, adding it could potentially shift the business model.
"Law firms may be forced to shift from traditional hourly billing to value-based pricing models, with AI-driven efficiencies allowing a narrower focus on higher-value services," said Kartik Ganapathy, founding partner, IndusLaw. "Clients themselves will adopt AI powered tools, which will lead to law firms having to think about both their form and function in a world where AI has developed to the point of capably performing various legal tasks."
Firms are using AI tools for contract review and analysis, due diligence, legal research, drafting, predictive legal analytics, knowledge management and automation. Additionally, AI is being leveraged for litigation support, flagging risks, legal database querying and retrieval, email retrieval, summarisation, and translation.
AI in data analysis, marketing and communication, market intelligence, strategic decision-making support, and business development are also focus areas.
Many are putting in place dedicated teams to chalk out their AI strategies and innovation roadmaps, looking to scale AI use across practice areas and functional teams, training lawyers on how to use the technology effectively and safely, and striking partnerships to leverage the technology.
According to Gartner, Generative AI is set to accelerate the growth of the legal technology market, which is expected to reach $50 billion by 2027.
"The legal sector has not embraced any technology with such fervour in recent history," said Hemant Krishna, partner, Shardul Amarchand Mangaldas.
ET reported in September that the Nifty 500 companies spent Rs 52,568 crore ($6.26 billion) in legal expenses for the year ended March 2024, up 17.03% from Rs 44,920 crore in the previous year.
"If you can reduce that by even 10-20% using AI technology, that's a big achievement," said Saakar S Yadav, founder, Lexlegis.ai, a Mumbai-based startup developing AI-driven solutions for legal research, drafting, and document analysis.
IndusLaw uses a range of purpose-built bespoke AI tools integrating various LLMs and is looking to develop or use more specialised AI tools for areas like mergers and acquisitions, intellectual property, and litigation.
"At this time, in a blue-sky scenario, (AI tools for client assistance) could even range to real-time contract management and legal advice use cases," Ganapathy said.
Khaitan & Co is driving AI adoption with its internal initiative Khaitan AI Programme (KAI) that combines firm-specific data with various large language models (LLMs) to ensure data security and deliver practical tools for lawyers.
"We have a structured AI strategy led by our digital, technology, and innovation team," said Rohit Shukla, chief digital officer at the firm. The focus is capability enhancement, responsible innovation, and delivering measurable value.
In November-December 2024, KAI.Query saved approximately 85-100 hours across various use cases. Material contract summarisation reduced review times by 50-60% in certain large-scale projects. Document list reviews and change-of-control provision analyses have seen efficiency gains of 50-75%, while custom tools like a litigation date-tracking widget have streamlined workflows significantly, Shukla said.
Trilegal is also experimenting with contract generation automation and deep AI search, said Nikhil Narendran, partner-technology, media and telecommunications and head-digital innovation group.
Adoption has been boosted by the increasing maturity of GenAI tech, with token costs coming down and a multi-LLM approach enabling better outputs. "On-premise installation options have also given us the right comfort with respect to data security," said Narendran.
The question is no longer whether to adopt GenAI but how to integrate it thoughtfully while navigating challenges around ethics regulation and cultural change, according to Komal Gupta, chief innovation officer, Cyril Amarchand Mangaldas. "Those who rise to this challenge will shape the legal profession's next frontier," Gupta said.
With GenAI, productivity has increased by 30%, with improved client outcomes and reduced turnaround times, Gupta said. The firm is prioritising the development and implementation of a comprehensive Generative AI policy considering strategic expansion, targeted training, and robust governance.
While some routine tasks may be automated, AI is more likely to augment the role of lawyers rather than replace them, executives said.
Meanwhile, smaller firms or legal startups with advanced AI adoption could disrupt the market by offering more cost-effective, tech-driven solutions, forcing larger firms to innovate and adopt similar tools to stay competitive.
