AI and Regulatory Compliance in Law Firms — What Solicitors Need to Know

UK law firms are increasingly using AI tools — for research, drafting support, and practice management. But regulatory frameworks have not stood still. The SRA, ICO, and professional conduct rules all have implications for how and whether you can use AI in practice.

This post sets out what UK solicitors need to have in place.

The SRA's position on AI

The SRA does not ban AI. But it makes clear that solicitors remain personally responsible for the work they produce, regardless of how it was generated. The SRA Standards and Regulations — particularly the Principles and the Code of Conduct — apply to AI-assisted work exactly as they apply to work done without AI.

Key obligations that apply:

Competence. You must be able to assess the output. If you cannot identify whether an AI-generated research memo is accurate, you may not be competent to use it in that context.

Client confidentiality. Inputting client data into a third-party AI tool may constitute a disclosure. You need to understand where data is processed, who can access it, and whether your retainer permits it.

Supervision. Junior or unqualified staff using AI tools still need to be supervised. The AI does not reduce that obligation.

ICO requirements

The UK GDPR applies whenever personal data is processed. Using AI on client files almost certainly involves personal data — names, circumstances, health information, financial details.

You need to be able to answer:

• What is the legal basis for processing client data through the AI tool?
• Where is the data processed? Is it leaving the UK? Is there an appropriate international transfer mechanism?
• Is there automated decision-making that affects a data subject's rights? If so, are you compliant with Article 22 (UK GDPR)?
• What is in your data processing agreement with the AI provider?

Most consumer-grade AI tools (including widely used chatbots) are not designed to be used with client-confidential data. Using them without proper due diligence is a risk.

A practical checklist

Before deploying any AI tool in practice:

1. Read the data processing terms of the tool. Understand what the provider does with your inputs.
2. Map the data flows. Identify what personal data will pass through the tool and why.
3. Update your privacy notice if necessary — clients should know how their data is processed.
4. Document the decision. If you decide to use a tool, record why and what safeguards apply.
5. Train staff. Everyone using the tool should understand what it can and cannot do, and what they must verify.
6. Review AI outputs before use. Build this into your workflows. AI output is a starting point, not a finished product.

What about AI research tools?

AI-assisted legal research tools that search case law and legislation — rather than generating free-form text from training data — carry a different risk profile. The outputs are traceable to real sources, and verification is straightforward.

Even so, you should check that citations are accurate, that cases have not been overruled, and that legislation reflects current law.

Where OrdoLux fits

OrdoLux is a legal case management platform for UK solicitors. It includes a built-in AI legal research tool for case law and legislation research, with citations for human verification.

The platform handles matter management, time recording (via keyboard, automatic Outlook email capture, and WhatsApp), document storage with SharePoint, billing, KYC via Checkboard, Stripe payments, and electronic signatures — all in one place.

Learn about SRA compliant case management, see all features, or book a demo.