UKResearch
NatWest/PKF survey: 40% of UK law firms would consider third-party investment; AI use near-universal
NatWest’s annual legal report analysing 112 UK law firms found 40% would actively consider third-party investment, up from 29% two years earlier, Legal Futures reported on September 23, 2026. The survey also found only 5% of firms were not using AI, down from about half a year earlier, while warning that loss of client-account interest income could pressure margins and firm viability.
Key points
- Forty percent of surveyed UK law firms would actively consider third-party investment, up from 29% two years ago.Legal Futures
- The NatWest report, authored with PKF Francis Clark, analysed finances of 112 firms with median turnover of £23 million.Legal Futures
- Only 5% of firms were not using AI, versus about half in 2025.Legal Futures
- Interest profits were a median 3.7% of earned income and 14% of PEP.Legal Futures
- Median fee income growth was 7% in 2026; median PEP rose 2%.Legal Futures