Law360, London (May 6, 2025, 6:57 PM BST) -- The solicitors' watchdog said Tuesday it has approved the first legal services provider powered entirely by an artificial intelligence large language model, rather than human lawyers, describing it as a significant step toward enhancing access to justice.

Garfield.Law's AI litigation assistant helps small to midsized businesses recover unpaid debts of up to £10,000 ($13,400) through the English small claims court, with services starting from as little as £2. The Solicitors Regulation Authority said it is the first "purely AI-based firm" that it has authorized to provide regulated legal services in England and Wales.

Paul Philip, the SRA chief executive, described the move as "a landmark moment for legal services in this country. With so many people and small businesses struggling to access legal services, we cannot afford to pull up the drawbridge on innovations that could have big public benefits."

The CEO said that firms could improve legal services by using AI, while making them easier to access and more affordable.

The watchdog is encouraging new approaches and models which could potentially benefit consumers, but it has also warned that there are potential risks to the public from the use of AI in law. These include biases that could lead to unfair and incorrect outcomes, as well as errors such as considering non-existent cases.

Philip said that trust and confidence in regulated legal services rely on the public knowing that high professional standards are met. He added that risks associated with an AI-driven firm are unique.

"So, we have worked closely with this firm to make sure it can meet our rules, and all the appropriate protections are in place," he said.

SRA rules stipulate that named regulated solicitors will still ultimately be accountable for the firm delivering high professional standards, the watchdog added.

Garfield.Law, based in Tunbridge Wells, southeast England, was founded by London commercial litigation lawyer Philip Young — now its CEO — and quantum physicist Daniel Long.

The law firm says that businesses often view the pursuit of sub-£10,000 claims as prohibitively costly and time-consuming. The process is perceived as "confusing and intimidating, especially for sole traders and smaller businesses," the firm said in a statement Monday.

"U.K. businesses lose billions each year in unpaid invoices," Young said, with SMEs being particularly vulnerable. Garfield.Law addresses this by providing every business with the tools to get paid "fairly, affordably, and fast," he added.

Garfield.Law allows the claimant or their representative to upload relevant information and authorize each step in the process. The AI platform handles everything from creating letters before action to applying for default judgment, managing settlement negotiations and preparing for trial.

Services start at £2 for a "polite chaser." An AI-generated letter before action, compliant with the County Court's official debt protocol, costs £7.50. A claim form and particulars of claim, which comply with court rules and are sent on behalf of the client, cost £50.

Justice Colin Birss, deputy head civil justice, told the Civil Justice Council in November that Garfield.Law is "absolutely at the core of what we can do for access to justice."

Philip of the SRA said that the watchdog expects it will regulate more such firms in the near future. A recent survey of more than 4,000 consumers in the U.S. and U.K. revealed that more and more people are open to legal services being powered by AI. Although only 4% of respondents said they would trust the new tech on its own.

"As this is likely to be the first of many AI-driven law firms, we will be monitoring progress of this new model closely, so we can both manage the risks and realize the benefits to consumers," Philip said.

--Editing by Joe Millis.

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