Artificial intelligence is emerging as a new source of legal and financial pressure for UK businesses, with more than a third now reporting a rise in low-merit claims generated using AI tools, according to new research from Irwin Mitchell.
The study, based on a survey of more than 80 senior in-house lawyers, highlights how AI is reshaping the litigation landscape—creating not only new efficiencies, but also new risks. Businesses say AI-generated claims are increasing legal workloads, absorbing senior management time and driving up costs at a moment when many organisations are already operating under tight margins.
Around 35% of in-house legal teams reported an uptick in claims, particularly from customers, where AI tools are being used to produce lengthy, highly structured legal arguments. While many of these claims lack substantive merit, they are often sophisticated enough to require detailed review and formal response.
Katie Byrne, Head of Commercial Dispute Resolution at Irwin Mitchell, said these claims are rarely successful but still impose a material burden on businesses.
“In-house teams are dealing with a growing volume of AI-generated, low-merit claims. Many are lengthy, legalistic and built from templates. Businesses say they rarely stand up, but they still consume time and budget, and are driving greater spend on cyber cover and claims handling,” she said.
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