In a move that underscores the growing influence of artificial intelligence (AI) in the legal industry, Baker McKenzie, one of the world's largest law firms, has announced a significant reduction in its global business services staff. This decision affects various departments across all offices, including IT, knowledge management, administration, DEI (Diversity, Equity, and Inclusion), leadership and learning, secretarial, marketing, and design teams.

The firm is set to lay off just under 10% of its workforce, which translates to over 700 employees, according to current staff numbers. This sweeping change is part of a broader strategy to incorporate AI technology in a bid to streamline operations and enhance service delivery to clients.

A statement released by Baker McKenzie explains the rationale behind the layoffs: "To position the firm for continued growth and remain agile in a fast-evolving business context, we recently undertook a careful review of our business professionals functions. This review was aimed at rethinking the ways in which we work, including through our use of AI, introducing efficiencies, and investing in those roles that best serve our clients’ needs.”

The firm also noted that the decision was not made lightly and that it plans to support those whose roles are affected. "Following the review, and consistent with many other organisations, we are proposing a series of changes to how we operate and deliver important business services. Subject to consultation processes in applicable jurisdictions, some roles will likely be phased out, while others will evolve. We have not taken decisions around these proposed changes lightly, but felt it was necessary to deliver on our long-term plans. We appreciate the valuable contributions our impacted colleagues have made to the Firm and will be supporting them.”

This development has sparked a conversation about the future role of AI in the legal sector, especially regarding its potential to replace human jobs. While the technology promises greater efficiency and cost-effectiveness, it also poses challenges for employment within the sector.

The news of the layoffs at Baker McKenzie serves as a stark reminder of the double-edged sword that technological advancements can represent. As AI continues to be integrated into various industries, the balance between harnessing its potential and mitigating its impact on employment remains a critical challenge.

For those interested in more details about the layoffs and the role of AI in reshaping business operations at Baker McKenzie, further coverage is available through RollOnFriday and Legal Cheek. These sources provide exclusive insights into how the reliance on AI is shaping decisions at major law firms today.