Across Australia, small and mid-sized law firms are undergoing one of the most significant transformations in the modern history of the profession. This change has not been imposed from above or driven by regulation. It has emerged organically from practitioners who understand how to convert technology into leverage.
Over the past year, there has been a clear acceleration in the adoption of AI-enabled research tools among sole practitioners and small firms. These lawyers are not chasing novelty. They are pursuing efficiency and insight. They have discovered that the most powerful applications of AI are measured in hours saved, matters progressed, and the ability to deliver high-quality, well-reasoned advice within the real-world constraints of a busy practice.
In large firms, efficiency is often a target but rarely a necessity. In smaller practices, it is a lifeline. The Australian legal profession is made up overwhelmingly of small practices serving local or specialised client needs. For these lawyers, every reclaimed hour translates directly into professional and financial value: an extra client seen, an argument refined, an advice perfected.
As one litigation lawyer put it:
“Habeas AI is impressive and powerful. As a litigation lawyer, I have found Habeas useful for sourcing specific sections of legislation and relevant case law within seconds. Using Habeas has expedited legal research by quickly generating results with citations sourced from primary resources, and links directly to the relevant legislation and case law.” - Damin Murdock, Principal Lawyer, Leo Lawyers and Chief Legal Officer, Lawpath Australia
Tools like Habeas do not automate judgment. They expand the time available to exercise it. They give a lawyer as sophisticated ideation and retrieval agent capable of distilling vast volumes of information into key insights. Research that once consumed the better part of a morning now takes minutes. That margin of saved time compounds, allowing practitioners to analyse more thoroughly, draft more confidently, and focus on strategy rather than search.
Across dozens of firms surveyed, the pattern is consistent. Lawyers using modern AI-integrated research systems report three to five times faster turnaround on research tasks, greater confidence in sourcing authority, and renewed energy in testing alternative arguments. The real transformation lies not only in efficiency but in how these tools are reshaping the structure and competitiveness of small firms.
A new model of knowledge work is emerging within the profession. Many firms using Habeas are building internal knowledge layers that merge case law, legislation and their own precedent materials. These are firm-specific legal intelligence systems, repositories of insight accessible through natural-language queries.
These firms are no longer catching up with larger ones. In many cases, they are outpacing them. Without the inertia of legacy systems or the delays of large-scale decision-making, smaller firms are adopting AI quickly, refining workflows weekly, and embedding technology across their client lifecycle. The result is a new class of agile, mid-tier practices emerging from the small-firm sector, growing through smarter use of technology.
For decades, this kind of internal infrastructure was the preserve of top-tier firms with dedicated knowledge management teams. Now, a sole practitioner with a modest budget can achieve comparable analytical power, often with greater precision and flexibility. The redistribution of capability that follows may prove to be one of the most consequential shifts in Australian legal practice in a generation.
Australia’s legal landscape makes it especially fertile ground for this change. With a high proportion of sole practitioners and boutique firms, the marginal gain from technology is amplified. Many of these lawyers operate outside major city centres, where time, staffing and access to resources are persistent constraints. AI has become an enabler of progress and accessibility.
As one practitioner observed:
“In the last few years of experimenting with AI, I’ve found its legal research capabilities to be pretty underwhelming. However, I have found a genuinely useful research tool in Habeas. The difference is its agentic approach that builds off more traditional search methods and ties the results to publicly available case law and legislation, always cited with relevant extracts produced. It is genuinely helpful and it’s also far more affordable for tiny practices like mine.” - Jennie Pakula, Principal, Lawyers’ Friend; former Ethics Solicitor, Law Society of NSW
Jennie’s experience reflects a broader reality. For smaller firms, reliability, affordability and verifiable sourcing matter as much as capability. An effective AI system for legal work must integrate cleanly into existing workflows, maintain professional standards of accuracy and deliver results that can withstand the scrutiny of court or client.
The story now extends beyond efficiency. Firms that integrate AI intelligently are beginning to scale. They are taking on more complex matters, attracting higher-value clients and expanding their reach and practice. By automating repetitive tasks and accelerating analysis, they are unlocking capacity that once limited their growth.
Smaller firms can now deploy advanced tools faster, iterate more freely and respond more quickly to client needs than many of their larger competitors. Several of the most forward-looking practices we have seen are already transitioning from boutique to mid-size operations, growing through efficiency rather than headcount.
At the centre of this evolution remains professional judgment. Every effective use of AI in practice depends on the lawyer’s ability to frame a question precisely, interpret results critically and apply reasoning to the client’s circumstances. The technology magnifies these abilities; it does not replace them.
The lawyers who achieve the most with AI treat it as an extension of their intellectual craft. They bring to it the same discipline and clarity that define good legal practice. In doing so, they preserve the essence of the profession while expanding its reach.
Legal AI is no longer experimental or peripheral. It is becoming part of the profession’s working infrastructure, supporting lawyers across Australia in the daily rhythm of their practice. The firms integrating it now are defining what modern legal practice will look like in the decade ahead.
At Habeas, it has been remarkable to watch this transformation unfold and to play a small part in it. Each practitioner who incorporates AI into their workflow contributes to a broader movement defined by competence, curiosity and professional integrity.
