The Solictors Regulations Authority (“<span class="news-text_medium">SRA</span>”) has authorised the first law firm, Garfield.Law Ltd, to provide legal services through AI. While many law firms already use AI to support back-office functions and public-facing services, Garfield.Law Ltd, based in Tunbridge Wells, Kent, is the first purely AI-based firm authorised to provide regulated legal services in England and Wales. Garfield.Law offers small and medium-sized businesses and law firms access to an AI-powered litigation assistant. Garfield.Law Ltd specialises in helping businesses recover debts of up to £10,000, with costs starting at £2 for sending a 'polite chaser' letter. The service helps clients recover unpaid debts by guiding them through the small claims court process, all the way to trial.
The SRA is actively encouraging the development of new approaches and models in legal services, recognising the consumer benefits that AI-driven services can bring. AI has the potential to deliver better, quicker and more affordable legal services, addressing access to justice concerns. However, the SRA acknowledges the actual and potential risks to consumers and has ensured that appropriate checks are in place to maintain high levels of consumer protection.
Before granting authorisation to Garfield.Law, the SRA engaged with the firm’s owners to review its processes and ensure that its AI service complies with regulatory standards. This included seeking assurances that Garfield.Law has processes in place to quality-check work, protect client confidentiality and avoid conflicts of interest.
Another key concern addressed by the SRA was the risk of “AI hallucinations” - situations where the AI system fails to propose relevant case law due to limitations in large language model machine learning. The system, however, will only proceed with client approval and there will be ongoing supervision and monitoring processes to ensure the AI operates correctly. In the initial launch phase, greater oversight will be provided to identify potential risks and issues.
Under the SRA's rules, regulated solicitors will still ultimately be responsible for the firm’s legal services and ensuring high professional standards. This means that solicitors will be accountable for the system's outputs and any errors or issues that arise. All regulated law firms, including Garfield.Law, must maintain a minimum level of insurance to protect clients. Garfield.Law is not autonomous and will only take a step where the client approves it.
Paul Philip, SRA Chief Executive, commented: “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. Responsible use of AI by law firms could improve legal services, while making them easier to access and more affordable”.
Philip added, “Yet trust and confidence in regulated legal services depend on the public knowing that high professional standards are being met. Any new law firm comes with potential risks, but the risks around an AI-driven law firm are novel. So we have worked closely with this firm to make sure it can meet our rules and all the appropriate protections are in place. As this is likely to be the first of many AI-driven law firms, we will be monitoring the progress of this new model closely, so we can both manage the risks and realise the benefits to consumers”.
The SRA also highlighted its dedicated team focused on supporting innovation within the legal sector. This includes working with law firms and technology providers to test new ideas and help develop innovative approaches that could benefit the public.
