Microsoft’s Secret to Legal Efficiency: What Law Firms Can Learn

Microsoft, one of the largest companies in the world, grapples with the same legal challenges faced by law firms every day. Their 2,000-strong legal team—tasked with analysing countless regulations, managing mountains of contracts, and keeping pace with ever-changing global compliance requirements—needed a solution. But instead of turning to expensive, off-the-shelf legal tech, Microsoft decided to try something bold.

They implemented a tool you might already have access to. A tool that could save law firms countless hours and thousands of pounds.

The results? Game-changing.

A Counter-Intuitive Move in a Booming Market

On the surface, Microsoft’s approach might seem puzzling. The legal tech market is booming, projected to surpass $35 billion by 2025. Established legal software providers are adding AI to their platforms, enhancing case management systems, legal research tools, and contract drafting software.

At the same time, a flood of new AI-powered tools is hitting the market. Tools designed to automate everything from e-discovery to contract analysis to client intake processes. They promise precision, speed, and compliance—features every law firm wants.

The messaging is clear: you must have one of these tools to keep up. Legal tech vendors argue that without their products, firms will fall behind in an increasingly competitive and technology-driven world.

But Microsoft did the opposite. They didn’t buy into the hype of niche AI legal tools. Instead, they chose to leverage their own technology—tools available in Microsoft 365—to address the same challenges these specialised solutions claim to solve. And it worked, resulting in a 32% faster completion of assigned tasks and a 20% improvement in accuracy.

What Microsoft Did: Copilot Transforms Legal Operations

Using Copilot, Microsoft’s legal team redefined how they work:

• Summarising Complex Regulations: Copilot rapidly condenses lengthy regulations into digestible insights, cutting hours from research time.
• Streamlining Legal Research: With AI-generated summaries and trend analyses, CELA attorneys stay ahead of industry changes with minimal effort.
• Drafting with Precision: Copilot assists with drafting guidance, ensuring documents are clear, accurate, and delivered faster.

The result? Microsoft transformed a traditionally reactive department into a proactive, strategic partner.

Building on Copilot with Copilot Studio

While Copilot itself brings immense value, its capabilities can be extended even further with Copilot Studio. This platform enables law firms to develop customised workflows and conversational agents tailored to their unique needs.

• Automated Workflows: Copilot Studio allows firms to create automated workflows that integrate seamlessly with legal processes. Imagine setting up a workflow to:

  • Automatically draft contracts from predefined templates.
  • Flag inconsistencies or missing data in scanned agreements.
  • Generate client intake summaries based on email or form inputs.
    
    

• Conversational Agents with Legal Knowledge Sources: Firms can build conversational agents that are specifically trained on their legal knowledge bases or external providers. These agents can:

  • Respond to client queries instantly, reducing response times for common legal questions.
  • Assist lawyers in real time by providing summaries of case precedents or explaining legal terms in plain language.
  • Serve as internal assistants for administrative tasks, such as scheduling or time tracking.
    
    You can try this out for yourself with our demo Anti-money Laundering Conversational Agent which uses the Solicitors Regulation Authority's LSAG Guidance as its knowledge source to answer detailed questions on AML compliance for firms or individual cases.
    
    

• Live Transcription and AI Notes in Teams: Microsoft Teams, enhanced by AI capabilities, offers live transcription and AI-powered meeting notes. For lawyers, this means:

  • Instant transcription of meetings or calls, enabling accurate record-keeping without manual note-taking.
  • AI-generated summaries and action points that can be saved as file notes or directly linked to cases.
  • Seamless integration into workflows, ensuring critical insights are captured and accessible for future reference.

By combining Copilot, Copilot Studio, and tools like Teams, law firms can take control of their workflows, adapting the technology to their exact needs rather than being forced to fit into someone else’s software.

Why This Matters for Law Firms

The technology Microsoft used isn’t exclusive to them. Tools like Copilot, Copilot Studio, and Teams are widely available to any firm using Microsoft 365. This accessibility changes the game for law firms:

• Tailored Solutions: Unlike specialised legal tech that forces firms to adapt their processes, these tools allow firms to build workflows and assistants that fit their specific needs.
• Cost Efficiency: With no need to purchase additional platforms, firms can leverage existing tools to achieve significant savings.
• Scalability and Flexibility: These tools evolve rapidly, ensuring they stay relevant as the firm’s needs grow or change.

The Danger of Rushing into Specialised Legal Tech

Here’s the catch: many law firms are tempted by niche AI legal tech solutions. These tools promise to solve specific problems, but they come with risks:

1. Lock-in: Specialised platforms can tie firms into rigid workflows that don’t align with their needs.
2. Obsolescence: AI is advancing so quickly that tools purchased today may be redundant tomorrow.
3. Integration Challenges: Adding yet another platform to your tech stack often creates more problems than it solves.

Microsoft’s approach—dogfooding their own tools—shows that general AI solutions like Copilot and Copilot Studio can meet most legal needs without the downsides of specialised software.

GDPR Compliance and Security

But what about data compliance? As our blog on GDPR and Microsoft Copilot explains, these tools are designed with robust compliance features. For law firms handling sensitive client data, this is non-negotiable.

With Microsoft prioritising GDPR and other regulatory frameworks, firms can trust these tools to handle their most sensitive data securely.

What Law Firms Should Do Next

Microsoft’s success is a lesson in innovation, agility, and smart investment. Here’s how law firms can follow their lead:

1. Assess Your Needs: Start by identifying areas where staff augmentation or automation could save time or reduce costs.
2. Leverage What You Have: Explore the potential of tools already in your tech stack, like Microsoft 365, before committing to new platforms. Remember, as a Microsoft M365 customer you can use the basic version of Copilot for free at https://copilot.microsoft.com
3. Stay Agile: Monitor advancements in AI tools like Copilot and Copilot Studio to ensure your technology keeps pace with industry developments. Only use legal tech to fill gaps that can't be covered by your existing tech.

A Blueprint for the Future

Microsoft’s internal experiment wasn’t just a success for them—it’s a model for the entire legal industry. By leveraging tools like Copilot and Copilot Studio, law firms can modernise operations, reduce costs, and remain competitive without the risks of over-investing in niche legal tech.

The tools are there, ready to be used. The question is: will law firms seize the opportunity, or get left behind?

Start Using AI Today

Why adapt your firm to someone else’s software when you can use tools that adapt to you? With AI assistants like Microsoft Copilot and Copilot Studio evolving rapidly, the smartest investment might be in what you already have.

To find out more, fill out the form below to book a discovery call and explore how your organisation can transform today with AI.