By Legal Futures Associate Search Acumen
- 2026 will see an accelerated adoption of AI and technology in the legal sector, especially in property law, driven by government innovation and investment
- As AI and digital tools become more sophisticated and comprehensive, law firms will streamline their subscriptions to one or two essential products
- Potential complications in transactions resulting from tax and policy changes will emphasise the value of trusted and experienced legal advisors
- 2026 will see an accelerated adoption of AI and tech in the legal sector
The Government is investing significantly in AI and technological capabilities to make public services more efficient and effective. This includes HM Land Registry’s 2025+ strategy, which will deploy technologies such as artificial intelligence (AI), automation, open data, and geospatial mapping to speed up transactions, reduce fraud and improve access to land and property information. As these technologies are introduced, there will be an acceleration of their adoption in the private sector.
Andrew Lloyd, Managing Director of Search Acumen, says: “Law firms have been dipping their toes into the world of AI and digital technologies, but with the government’s continued drive to digitise, as exemplified by HLMR’s tech-forward 2025+ strategy, many will find 2026 is the time to dive in fully. For example, the closure of the AP1 portal in Spring 2026 will mean that firms will have to be equipped to submit applications via the Document Registration Service, or incur costs by using third party providers to do it for them.
“Clients and other market stakeholders will also increasingly expect greater technological know-how from law firms as the ecosystem continues to digitise. The firms that fail to keep pace with the current trajectory will soon find themselves falling behind quickly.”
- Law firms will streamline their tech subscriptions to one or two essential products
Since the explosion of ChatGPT and generative AI onto the scene three years ago, innovation has been a key characteristic of the legaltech market. As a result, firms have had a broad variety of tools to choose from, developed by a multitude of providers. As the market matures and product development becomes more iterative and focused on user experience, many firms will find by 2026 that they have several tools duplicating the same service, where reducing their tech bloat will be a key theme of the next 12 months.
“Streamlining third party technology tools in 2026”, says Andrew, “Will be key to unlocking budget and honing the right skills as the legaltech market matures. Technology officers and those looking after subscriptions at law firms will be looking for providers that offer a rounded suite of services and targeted efficiencies, rather than single impressive capability. Those holding the purse strings will also be looking to cut tech bloat and eradicate duplicate services from multiple providers but may find the market beats them to this, as M&A deals bring similar technologies under the same brand.”
- Soft skills in legal work will become more important than ever
The Autumn 2025 Budget heralded some significant changes and potential challenges for the property sector. The so-called “Mansion Tax” will precipitate greater disputes and negotiations regarding valuations of residential properties, whilst changes to business rates could have a potentially similar impact in the commercial real estate sector.
Commenting on the enduring value of the human touch in legal work, Andrew says: “As home buyers and businesses navigate the new economic reality created by the Budget, trusted and experienced legal advisors will be more important than ever. Increasing property taxes and business rates also magnifies transactional risk and reward, supercharging emotions and expectations during negotiations. A steady pair of legal hands can make all the difference in these situations, and lawyers of this calibre and experience will be in high demand in 2026 for sure.”
