9 Reasons Why Canadian Law Firms Should Embrace Legal AI in 2025

Canadian businesses and professionals have been eager to explore the possibilities of generative artificial intelligence (Gen AI) technology, but adoption rates need to accelerate in 2025 for Canada to stay competitive in the global economy. 

A 2024 survey by the Canadian Chamber of Commerce found that one in seven Canadian businesses have so far adopted Gen AI tools and that on its current trajectory, Gen AI adoption by Canadian businesses could reach a tipping point in the next three to six years. 

“(This) is likely too slow to keep pace with global competitors,” according to a report from Business Data Lab in Canada. “Businesses and governments have practical options for accelerating the adoption of Gen AI in Canada. These include building trust in the technology by educating workers on its added-value usees, up-skilling workers and fostering a sense of urgency to experiment.” 

Legal AI Set for Takeoff in Canada Canadian legal professionals are at the forefront of Gen AI adoption — professional services firms ranked second (28%) among all Canadian industries, according to the survey — but there is still some work to be done in 2025. 

Here are nine ways that Gen AI tools targeted towards the legal profession will continue to shape the Canadian legal landscape in 2025 for those who are ready to embrace the change now: 

1. Revolutionize Legal Work
   Legal AI is moving beyond document automation and is now capable of assisting with legal research, tailored legal guidance and enhanced contract negotiation assistance.

2. Streamline Research and Due Diligence
   AI-powered tools can expedite time-consuming legal research and due diligence tasks by analyzing large volumes of documents to extract key information and identify potential risks. 

3. Litigation Analytics
   Legal AI algorithms can analyze historical data to predict the likelihood of success in litigation, identify potential settlement opportunities and optimize litigation strategies. 

4. Client Confidence
   Lawyers who use Legal AI technologies grounded in authoritative sources can build trust and confidence among clients, nearly all of whom want to see their outside counsel use leading-edge tools that help them work more efficiently and effectively. 

5. Integration with DMS
   Legal AI tools can be integrated with law firm document management systems (DMS) to automate administrative tasks, improve workflow efficiency and optimize resource allocation in the firm. 

6. More Strategic Thinking
   As Legal AI automates routine tasks, legal professionals will be free to focus on strategic activities such as client relationship management and complex legal analysis. 

7. Reduced Costs, New Revenues
   

   On the expense side of the ledger, Legal AI helps law firms to increase efficiencies and reduce costs; on the income side of the ledger, AI can create new revenue streams for law firms such as taking on more business through improved efficiencies or expanding practice areas. 

8. Innovation
   Law firms can foster a culture of innovation by actively seeking out partnerships with technology providers that have developed and implemented innovative AI-powered tools specifically for the legal profession. 

9. Ethical and Responsible Development
   AI development must be guided by ethical principles that prioritize key values such as fairness, transparency and human accountability. This makes it essential for firms to use an AI platform that is rooted in guidelines for responsible use in the legal industry. 

Gen AI will continue to transform the Canadian legal landscape in 2025, so it is important for law firms to embrace these innovative tools that improve client service and enhance the practice of law. 

The good news is that many Canadian businesses appear to have taken their first tentative steps, exploring the potential of Gen AI through small-scale pilot projects, and are ready to dive in  more aggressively this year. 

“This momentum positions 2025 as a pivotal year for Gen AI adoption in Canada,” writes Sam Sebastian, VP and Country Manager for Google Cloud Canada. “As the technology matures and initial deployments demonstrate tangible value, executives will face the imperative to build winning AI strategies that fundamentally transform how their companies operate, compete and innovate.” 

Experience Lexis+ AI™ for Canada

Lexis+ AI is the first comprehensive bilingual Canadian legal Gen AI solution available for legal professionals in Canada. This innovative platform 

enables conversational search, insightful summarization, intelligent legal drafting, and document upload and analysis capabilities — all supported by state-of-the-art encryption and privacy technology to keep sensitive data secure. 

Lexis+ AI is tailored for Canadian legal professionals and is grounded in our extensive repository of accurate and exclusive Canadian law content and use cases. It provides first-of-its-kind tools for Canadian lawyers that take advantage of our exclusive, high-quality content to dramatically improve the speed, quality and effectiveness of their work. 

See how Lexis+ AI can transform your workflow by booking a complimentary live demo. 

Learn what to look for in a legal AI solution by downloading The Definitive Canadian Guide to Choosing a Gen AI Legal Research Solution.