Legal AI Goes Core: Clio's Jack Newton on What's Next-and Why Australia Is Out in Front
On a recent Scalable Law Podcast, Clio CEO Jack Newton laid out where legal tech is headed, how AI is changing firm operations, and why Australia is becoming a proving ground. As the founder of a leading cloud-based practice platform, he has a clear view of what's working and what isn't.
Here are the key ideas-and what they mean for your firm.
1) Legal AI isn't an add-on-it's the operating system
AI is moving inside the workflow: drafting, intake, research, timekeeping, and case management. Newton puts it plainly: "The law firms that win are the ones that go native with AI, not the ones who bolt it on."
- Pick two high-volume, low-risk workflows (e.g., intake triage, first-draft emails) and pilot AI there.
- Create a private knowledge base (templates, briefs, memos) to improve output quality.
- Keep humans in the loop. Require sign-off on every client-facing document.
- Track ROI: hours saved, turnaround time, realization rate, client satisfaction.
2) Culture is the hidden edge
Code matters, but culture decides adoption. Firms that connect AI to a clear purpose move faster and avoid busywork projects.
- Name an AI lead, set simple guardrails, and run weekly office hours.
- Offer short trainings and reward actual use (not slide decks).
- Document prompt best practices and common failure patterns.
3) Access to justice is the biggest business opportunity
Lower cost-to-serve and you open up a bigger market. AI plus automation can make fixed-fee work, unbundled services, and quicker responses viable for more clients.
- Use guided intake and FAQs to answer simple questions fast, then route to a lawyer when needed.
- Automate routine follow-ups, deadline reminders, and document assembly.
- Publish clear pricing and turnaround expectations to reduce inbound friction.
For context on the global justice gap, see the World Justice Project's research here.
4) Why Australia matters now
Australia has high cloud adoption, strong interest in legal operations, and a regulatory environment that rewards good process. That makes it a prime testbed for modern practice platforms.
Newton confirmed Clio is building features for local needs-from billing formats clients expect to compliance tooling that matches regional requirements. If you operate in Australia, align AI adoption with privacy obligations and client expectations. A good starting point is the OAIC's guidance on the Privacy Act here.
5) The next frontier is clients, not courts
The near-term win isn't replacing lawyers-it's increasing capacity. Client-first systems will outperform firm-first systems because they reduce confusion and increase speed.
- Offer a secure portal with real-time status, messaging, e-sign, and payments.
- Summarize calls and documents into client-ready updates-consistently, not just on good days.
- Use AI to suggest next steps, follow-ups, and deadlines so nothing slips.
A 90-day plan to move from talk to traction
- Days 0-30: Write a one-page AI use policy. Audit workflows. Select two use cases. Choose vendors with strong privacy and data controls.
- Days 31-60: Pilot with one practice group. Red-team for confidentiality, accuracy, and bias. Capture before/after metrics.
- Days 61-90: Roll out training. Publish playbooks and prompts. Expand to a second practice group.
Risk, ethics, and client trust
- Protect privilege and PII; avoid public tools for live client data.
- Use model grounding (retrieval from your documents) to reduce errors.
- Disclose AI assistance where appropriate and keep a human reviewer in the loop.
- Negotiate DPAs with vendors and turn on audit logs.
Bottom line
AI is becoming the core of legal work. Firms that build the culture, process, and client experience around it will pull ahead-especially in markets ready to move, like Australia. Start small, measure hard, and ship improvements weekly.
If your firm needs structured upskilling for different roles, explore practical AI course paths by job role here.
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