English regulators have approved a pioneering law firm that leverages artificial intelligence to offer legal services at significantly reduced rates, marking a notable advancement in the integration of technology within the legal industry. The firm, Garfield AI, operates under the premise of providing accessible legal remedies to businesses and individuals, including tradespeople, for costs as low as £2 for service such as drafting “polite chaser” letters.

Founded by former litigator Philip Young and quantum physicist Daniel Long, Garfield AI utilises an online platform that assists users in navigating small claims court proceedings. The AI tool is designed not only to produce basic communication documents but also to file important legal forms, charging £50 for such services. Moreover, it can generate arguments for claimants to present in court.

The approval from the Solicitors Regulation Authority (SRA) in March 2023 has been described as a “landmark moment” for the legal sector. Young, who previously co-founded a renowned litigation firm in London, noted that the service could address the staggering £6 billion to £20 billion of unpaid debts that remain uncollected annually, often due to the lengthy and costly processes involved in legal recovery.

This announcement aligns with broader trends in which artificial intelligence is increasingly influencing sectors typically resistant to such rapid change, including law and finance. Last week, the Financial Times reported on the emergence of Rogo, an AI chatbot designed to emulate the functions of an investment banker, which successfully raised $50 million, elevating its valuation to $350 million.

Young expressed confidence in Garfield AI’s potential, stating, “I believe this is a world first, not only in being a pure AI law firm, but as a tool that can take a case through the court system from beginning to end.” In the initial stages, all outputs generated by the AI will be reviewed by Young before transitioning to a sampling system to ensure accuracy and quality.

The initiative has garnered some backing from the judiciary, with Lord Justice Colin Birss commenting in November that technology aiding access to justice was pivotal to the UK’s future legal framework.

In the face of this innovation, traditional law firms worldwide are grappling with the implications of artificial intelligence, striving to enhance efficiency while managing the risks associated with client data confidentiality and the precise nature of legal counsel. A significant player, A&O Shearman, is already working on developing AI tools that can be marketed to clients and other legal firms, focusing on alleviating the burdens of time-consuming, low-billing tasks in areas like antitrust and fund formation.

Paul Philip, the SRA’s chief executive, emphasised the importance of embracing such innovations, stating, “The first regulatory approval of an AI-based law firm is a landmark moment for legal services in this country. With so many people and small businesses struggling to access legal services, we cannot afford to pull up the drawbridge on innovations that could have big public benefits.”

Source: Noah Wire Services