AI in Microsoft 365 – the mid-market advantage

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Posted by Rob Lawson, head of sales and partnerships at Legal Futures Associate Qanooni

Lawson: Integration is key to realising benefits of AI

The next phase of legal AI isn’t about new platforms, it’s about integration

The reality of AI adoption in law

Artificial intelligence is no longer a speculative idea in the legal sector; it’s increasingly a business imperative. Clients, regulators and stakeholders expect firms to show they are making practical use of AI.

Still, many mid-sized firms are cautious due to risks such as cost, disruption and the uncertainty associated with adopting unfamiliar platforms or workflows. For firms without large IT teams or deep innovation budgets, the challenge is how to unlock AI’s benefits without painful upheaval.

Why familiarity matters

In the legal sector, adoption is far more likely when tools align with existing workflows. In law, this means the applications already used every day, particularly Microsoft Word and Outlook. These are the tools lawyers trust; layering AI into them reduces resistance, training burden, and risk of sprawl (multiple systems, multiple log-ins, etc).

Evidence from UK legaltech and AI trends

Here are some key data points and trends that highlight the current state of AI adoption in law firms:

• According to a survey by LexisNexis of over 800 UK legal professionals, 41% were using AI for legal work in late 2024, up from 11% in mid-2023.
• However, barriers remain: in the same research, only about 10% of respondents said they were free of concerns around generative AI; a majority (59%) had some concerns, with about a third describing their worries as ‘significant’ or ‘fundamental’.
• The Law Society reports that approximately 75% of the UK’s largest law firms have adopted AI in some form, whereas only about 30% of small firms are exploring its use.
• The Society for Computers & Law says that 38% of legal organisations admit to sending more than 16% of data to external AI tools that contains private or sensitive information.
• Regulatory/legal oversight is increasingly important. A Clyde & Co analysis emphasises that law firms must ensure robust data protection and cybersecurity when using AI to avoid client confidentiality breaches and legal liability.

The mid-market equation

Given this landscape, mid-market firms face a strategic choice: continue piloting and exploring AI in fragmented or peripheral ways or adopt tools that integrate with what they already use, to reduce friction and risk.

Embedding AI into Microsoft 365 fits well with the second route. Because Word, Outlook and the Microsoft stack are already part of procurement, licensing and security frameworks in most firms, layering AI into them can mean:

• Faster deployment;
• Fewer disruptions to workflows;
• Easier compliance with existing security/regulation frameworks; and
• Improved adoption, since lawyers are less resistant to changing tools they already engage with every day.

Trust as the deciding factor

From the data above, one of the clearest recurring concerns is confidentiality. Many firms are unsure how external AI tools handle or store sensitive client data.

More than one report suggests that sending data to third-party tools (for drafts, review, etc) poses real risk unless there are strong guarantees, while ethical, regulatory and professional standards demand oversight of AI outputs (accuracy, bias, traceability).

Any AI approach that seeks to win trust must provide transparency, auditability and rigorous controls around data use. Without that, adoption may stall, even if the benefits are evident.

Outlook

Trends suggest that AI will become a required part of legal practice, rather than an optional ‘nice-to-have’. Key indicators include:

• Firms are increasingly expected by clients to use modern tools and operate efficiently;
• The gap between firms that have adopted AI meaningfully and those that have not appears to be widening; and
• Smaller firms that lag behind risk both competitiveness (speed, cost) and perception (client expectations).

In this environment, the strategy that minimises risk, leverages what is already in place, and preserves client trust will likely win out. Embedding AI where lawyers already work (Word, Outlook, Microsoft 365) seems increasingly like the most pragmatic path forward.

Conclusion

AI in law is real; the opportunities it offers are very material. But for many mid-market firms, the path to realising those opportunities is less about which new platform to adopt, and more about integrating AI into the systems already in use.

Trust, privacy and seamlessness matter. Firms that can deliver efficiency gains without sacrificing confidentiality, running costs, or professional standards will be best positioned.