This Week in Law: Cyberattack News, Inflation Surges & More
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M&S Cyberattack – Repercussions still ongoing
Last week, we flagged the major cyberattack on Marks & Spencer, and the story continues to develop. M&S has now confirmed that the fallout will be felt well into July, with operational disruption persisting. A particularly tough blow is their cyberinsurance cover, which is capped at £100 million – total losses are expected to exceed £300 million, meaning a significant portion of the financial impact will come straight out of M&S’s own pocket.
Aside from the immediate monetary losses, this incident raises critical questions about brand reputation and the best ways to manage crisis communications during events like these.
Read more on brand crisis management here.
Inflation Surges to 3.5%, clouding Interest Rate prospects
UK inflation jumped unexpectedly to 3.5% in April, up from 2.6% in March, largely due to rising costs in energy, water, council tax, and transport. This sharp increase has made economists sceptical about the Bank of England’s chances of cutting interest rates in June – with August now also uncertain.
For businesses, this means that borrowing costs may remain high for longer, which could impact cash flow and investment decisions. It’s an important conversation for legal advisers to have with clients, especially around contract terms, pricing strategies, and financing.
Flexible working disputes on the rise
There’s a clear trend emerging in employment law: disputes over flexible working are becoming more frequent. Employment lawyers report an increase in cases related to hybrid and flexible working arrangements.
A recent King’s College London study sheds light on this shift – only 42% of UK workers now want to return to full-time office work, down from 54% in 2022. The impact is particularly pronounced for parents, with 64% of women and 53% of fathers of school-aged children considering quitting their jobs if forced back to the office full-time.
For employers, this highlights the urgent need to revisit flexible working policies to reduce the risk of disputes and retain valuable staff. A good article on flexible working here.
Garfield Law: The UK’s first AI-only Law Firm
A first for England and Wales, the Solicitors Regulation Authority (SRA) has authorised Garfield Law Ltd as the country’s inaugural AI-only law firm. This innovative firm specialises in debt recovery for small claims up to £10,000, using AI to handle tasks such as drafting legal documents and preparing cases for trial.
While AI undertakes routine work, human oversight remains in place to ensure accuracy and compliance. This development could signal a new wave of AI-driven legal services, potentially transforming the legal landscape further.
AI-Generated legal precedents under scrutiny
There’s growing concern within the legal profession over AI-generated legal precedents. Reports have surfaced of AI tools producing entirely fabricated case citations, which have been mistakenly relied on in legal arguments.
One recent example involved a barrister who used AI-created precedents that were later revealed to be fictitious, raising serious questions about reliance on AI without proper verification, whilst another this week involves an ex solicitor losing their appeal for citing 27 false sources, thought to be AI generated. Find out more here.
This serves as a cautionary tale for law firms: while AI offers great promise, all outputs must be thoroughly checked to avoid professional pitfalls.
Google rolls out new AI features
At its 2025 developers conference earlier this week Google unveiled “AI Mode,” a new feature that turns search into a more conversational, AI-powered experience using its latest Gemini 2.5 model. It allows users to ask complex, multi-part questions and get detailed, AI-generated answers. Currently available in the U.S., Google hasn’t confirmed a UK launch date, but based on past rollouts (like AI Overviews), it’s likely to arrive later in 2025.
Gary Lineker’s departure highlights social media risks
Gary Lineker’s recent resignation from the BBC followed controversy over a social media post criticised for containing antisemitic imagery. Despite apologising and removing the post, the incident has brought into sharp focus the career risks tied to social media activity.
For professionals, particularly those in the public eye, this underscores the importance of understanding the potential reputational impact of online posts. Employers may also want to revisit social media policies to help staff navigate these risks.
More on that here.
Rise in AML fines signals regulatory crackdown
The Solicitors Regulation Authority (SRA) has ramped up its enforcement on anti-money laundering (AML) compliance, issuing fines totalling £100,000 in the first two weeks of May alone.
This increase signals a tougher regulatory stance and sends a clear message to law firms: strong AML policies and procedures are essential to avoid costly penalties and reputational damage.
Read more here.
Law Commission proposes major overhaul of Wills Law
The Law Commission has published its final report recommending sweeping reforms to modernise wills law – the first major update since the Wills Act 1837. Key proposals include:
- Abolishing the rule that marriage or civil partnership automatically revokes a will, offering better protection for vulnerable individuals.
- Introducing electronic wills, with added formality requirements to ensure security and authenticity.
- Lowering the age of testamentary capacity and ability to make a will from 18 to 16 years old.
- Enhancing court powers to validate wills that don’t strictly meet formal requirements but clearly express the testator’s intentions.
These are proposed reforms at present but will require law firms to keep updated with new legislation and act accordingly.
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