The emergence of artificial intelligence in mainstream legal practice took further steps forward this week, with the acquisition of an existing firm and the launch of the first AI-only consumer legal business.

The AI legaltech platform Lawhive announced it has acquired consultancy-model law firm Woodstock Legal Services, having raised £43m last year in external investment.

The company is hailing the deal as the first ever acquisition of a traditional law firm by an AI platform, combining human expertise with intelligent technology and AI. Lawhive says it follows on from other industries where traditional providers have been brought into AI platforms and set new standards of service and quality.

In particular, the combined businesses will target the conveyancing market and aim to reduce the hours spent manually filling forms and chasing documents.

Lawhive’s AI character Lawrence will be able to draft documents, complete case research and handle routine case management that would normally be carried out by a paralegal or junior lawyer. The company says that Lawrence scored 81% on the Solicitors Qualifying Exam (SQE), well in excess of the 55% pass threshold.

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The intention is for lawyers to work alongside the AI and shape technology evolution from within the profession, rather than have it imposed from the outside.

‘We’re demonstrating that technology can support and enhance the best aspects of legal practice while creating communities where lawyers shape how that technology evolves,’ said Pierre Proner, chief executive and co-founder of Lawhive. ‘We believe that Lawhive’s vertically integrated model of a regulated law firm and tech platform for lawyers to work alongside AI colleagues, creates better outcomes for everyone.’

Woodstock Legal Services was founded by Carly Jermyn (pictured above with Proner) in 2014 and has more than 50 lawyers working as paid consultants. It will retain its brand as part of the acquisition. Lawrence will assist Woodstock’s lawyers by handling the paperwork that features in most transactions in areas such as conveyancing and litigation work.

Meanwhile, developers have unveiled what they claim to be Britain’s first AI-only consumer law firm. Grapple Law, an unregulated entity, will run claims against employers, insurance companies and airlines and claims to be available for as little as £20 a month.

Unlike a standard AI chatbot, Grapple Law will send emails to the target corporation on headed law firm email, and when they reply it instantly loops the client in and prepares the next step in the case, including drafting a court claim to issue. The process has no human lawyers involved, so claims to be cheaper and faster than a traditional law firm.