TLT has earmarked a £500,000 investment fund to develop new legal technology and consulting solutions as part of its 'Future Law' initiative.

The initiative will be led by James Touzel, head of TLT's digital group and an IT partner at the firm.

The fund will focus on developing pilots and prototypes and initially look at specific use cases for AI, smart contracts and eDiscovery.

Touzel said: "In two years' time we want this law firm to feel very different. We'll still be a law firm, but also a consultancy and selling our own technology."

He added: "Tech and new market entrants are clearly disrupting the sector. We are thinking differently about how to solve the challenges our clients face, as an intrinsic part of what we do every day. Ramping up our innovation programme will ensure that we continue to have a sustainable and valuable proposition for our clients in the future."

The initiative follows back-to-back revenue increases for the firm and comes after the announcement of other key initiatives, including a partnership with AI contract solution LegalSifter and the launch of a new regulatory consulting service led by Stuart Murray – a former director of regulatory affairs at BT.

Touzel explained: "Clients expectations are changing. They want law firms to provide consultancy on how they run their own in-house legal teams to be more efficient and provide more value. It's not only providing advice – an increasing number of clients also want us to sell them the technology we're using."

The fund was budgeted for at the beginning of the year. If pilot projects are successful, they will receive additional resources from the firm's major transformational projects fund.

Last month, TLT was appointed to Lucozade Ribena Suntory's first formal legal panel, along with Addleshaw Goddard, Clifford Chance, DWF, Norton Rose Fulbright, Stephenson Harwood and Walker Morris.