While many firms are already using AI to support and deliver a range of back-office and public-facing services, Garfield.Law Ltd is the first purely AI-based firm authorised to provide regulated legal services in England and Wales.

The firm offers small and medium sized businesses, as well as law and other firms, the use of an AI-powered litigation assistant to help them recover unpaid debts, guiding them through the small claims court process up to trial.

Under SRA rules, named regulated solicitors will still ultimately be accountable for the firm delivering high professional standards. This means they will also be responsible for all the system outputs and for anything that goes wrong. All regulated law firms must also have a minimum level of insurance in place to protect clients.

Paul Philip, SRA chief executive, said: “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.

“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.

“As this is likely to be the first of many AI-driven law firms, we will be monitoring progress of this new model closely, so we can both manage the risks and realise the benefits to consumers.”