Key points:
- 63% of mid-sized law firms have adopted generative AI, with Microsoft Copilot being the most common tool.
- 81% of firm leaders express concerns about AI's reliability and associated risks.
- U.S. courts recorded 487 instances of AI errors in court documents during 2025, a tenfold increase from 2024.
The legal profession has reached a pivotal moment: for the first time, a majority of lawyers are utilizing generative AI tools in their practice. This widespread adoption underscores the transformative potential of AI in legal workflows. However, it also brings to the forefront significant concerns regarding the technology's reliability and the imperative for robust governance.
**Adoption and Applications**
According to the 2025 State of the Legal Industry report by SurePoint Technologies, 63% of mid-sized law firms have formally integrated generative AI into their operations, with Microsoft Copilot being the most commonly adopted tool. Lawyers are leveraging AI for various tasks, including:
- **Legal research**: 40% of users
- **Drafting communications**: 25%
- **Summarizing legal narratives**: 23%
- **Reviewing legal documents**: 19%
- **Drafting or templating contracts**: 13%
- **Reviewing discovery**: 11%
- **Due diligence**: 8%
**Reliability Concerns**
Despite the rapid adoption, apprehension about AI's dependability remains prevalent. The report highlights that 81% of firm leaders are concerned about the reliability and risks associated with AI. This caution is not unfounded; U.S. courts documented 487 instances of AI-related errors or hallucinations in court documents during 2025—a more than tenfold increase from the previous year. Notably, licensed attorneys were responsible for 37.8% of these problematic filings.
**Governance and Risk Management**
The surge in AI-related errors underscores the necessity for comprehensive AI governance frameworks within legal practices. Effective governance is crucial to mitigate risks and ensure the responsible use of AI technologies. As the report aptly states, "AI governance is becoming as important as AI capability."
**Looking Ahead**
While 94% of firm leaders anticipate that AI will enhance revenue and improve client service, the structural changes many foresee have yet to materialize. For instance, nearly one-third expect AI to reshape their billing models, but none have implemented such changes to date.
As the legal industry continues to navigate the integration of AI, balancing innovation with caution will be paramount. Establishing robust governance structures and addressing reliability concerns will be essential to harness the full potential of AI while maintaining the integrity and trustworthiness of legal services.