SRA approves “first purely AI-based” law firm

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The Solicitors Regulation Authority (SRA) has authorised the first fully AI-driven law firm, Garfield.Law Ltd, to provide regulated legal services in England and Wales. The move is said to be a “landmark moment for legal services in this country”.

The firm offers an AI-powered litigation assistant designed to help small and medium-sized businesses, as well other law firms, recover unpaid debts of up to £10,000 through the English and Welsh court system. The cost of its services starts at £2 for sending a “polite chaser” letter.

The SRA is “encouraging the development of new approaches and models due to the potential consumer benefits”, highlighting AI’s potential to deliver “deliver better, quicker and more affordable legal services”. However, the regulatory body has acknowledged the unique risks posed by AI and is “making sure there are appropriate checks in place to make sure that consumer protections are not diluted”.

Before granting approval, the SRA conducted a thorough review of Garfield.Law’s systems to ensure compliance with regulatory standards. This included checks on client data confidentiality, quality assurance, conflict of interest safeguards and mitigation of ‘AI hallucinations’ – that is, instances where AI might generate inaccurate legal information. In addition, the AI system at Garfield.Law isn’t autonomous; it requires client approval for every action and is subject to human oversight, particularly during its initial rollout.

SRA CEO Paul Philip said: “Responsible use of AI by law firms could improve legal services, while making them easier to access and more affordable. Yet trust and confidence in regulated legal services depends 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.”

Meanwhile, the CEO of the Law Society of England and Wales, Ian Jeffery, called the approval a “significant milestone” but also highlighted that “necessary safeguards are in place”.

Jeffrey added: “Although the SRA's decision opens opportunities for AI-based law firms to make legal services more affordable and accessible, solicitors are still accountable to their clients regardless of the technology used.”

The SRA plans to “closely” monitor Garfield.Law’s performance and has a dedicated team supporting innovation in the legal sector. The move is expected to pave the way for more AI-driven law firms in the future, as the legal industry continues to evolve with technology.