LawtechUK set for next phase as government commits £4.5 million in funding

Ellie Nicholl (she/her) is senior content and engagement coordinator at LawCareers.Net

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The government has announced that it’ll continue to fund the LawtechUK initiative, a legal sector innovation and technology programme, committing £4.5 million until 2029. Law Society CEO Ian Jeffery has praised the decision, noting that “40% of global business and financial transactions [are] governed by English and Welsh law”, and therefore stressing the need to “embrace the new technology landscape to stay competitive”.

Upon announcing the new funding, courts and legal services minister Sarah Sackman stated that UK-founded lawtech companies secured almost £189 million in investment last year – up 35% from the year before. Sackman added: “The UK isn’t just keeping pace with the global legal tech revolution – we’re leading it […] With 44% of all European lawtech startups calling the UK home, they know Britain is where innovation happens. We have no intention of slowing down, which is why we’re investing £4.5 million to keep the UK at the frontier of legal technology.”

LawtechUK was set up in 2019 under Tech Nation, a government-backed network for startup technology businesses, and received £2 million in funding from the Ministry of Justice (MOJ). Its initial focus was to support businesses selling new technologies, such as AI. In 2023, the second phrase, backed by £4 million, shifted towards technology to fulfil “unmet legal need”. This phase was funded by Edinburgh-based tech incubator CodeBase and events company Legal Geek.

The MOJ said a competition to award the next stage of funding will be launched shortly, with the current contractors continuing to run the project in the meantime. Director of Legal Geek, Beth Fellner, said: “We are excited about the next phase of the campaign as we look to further develop a culture of innovation within the legal services sector and grow its vital contribution to the UK economy.”

Jeffery praised the funding decision, he also highlighted that more support is needed from the government. He stated: “While the profession is eager to integrate AI, significant barriers remain. We urge the UK government to provide more support to smaller firms and non-profits through grants, tax incentives and loan schemes.”

Jeffery also highlighted the importance of “upskilling lawyers” to ensure responsible and productive technology adoption”, calling for government-funded courses. He added: “We look forward to working with the government to ensure a level playing field. An innovative legal sector is key not only for the profession but for the entire UK economy. With the right regulation and support, England and Wales can continue to lead the world as a renowned legal centre.”