It's reasonable to have concerns about investing in new legal technology. For some firms, the central concern is whether the technology will justify its cost. Some are unsure what they actually need right now, especially as client demands and industry requirements continue to evolve each year.
However, despite these concerns, lawyers continue to use legal technology and are doubling their revenue from it. According to the Clio Legal Trends Report 2025, growing law firms have nearly doubled their revenues over the last four years while increasing the total number of clients by approximately 50%. That means not just law firms, but every business should adopt upcoming technology as soon as possible to be competitive, as competitors are already using these tools to stay ahead in the market.
Therefore, in this article, we'll explore the critical recent trends reshaping legal practices. These trends can help you make informed decisions about which technologies deserve your investment.
AI is currently the biggest technological trend of this decade, and law firms are adopting it at an accelerated rate relative to many other industries. According to a 2025 Legal Industry Study, 79% of attorneys are currently using some form of AI. The majority of these attorneys use AI for document review, legal research, and drafting letters.
If you are the owner or manager of a legal firm, implementing AI is recommended. Based on these statistics, your competitors are already using AI technology to complete the same tasks that you do, but in half the time. In contrast, you continue to draft client emails manually and examine contracts line by line.
As noted by Jack Newton, CEO of Clio:
"Legal is outpacing other industries when it comes to adopting AI; whether it is document drafting, client communications, or legal research, we are seeing lawyers realize the value of AI in a concrete way, further reaffirming that if you don't embrace AI, you're at a fundamental, competitive disadvantage."
How AI Helps Your Firm
It can help law firms in several ways. Below we have highlighted a few of them:
- AI handles important tasks like time tracking and document generation
- Clients receive their answers within hours compared to days. This quick turnaround improves the overall experience
- AI chatbots answer queries 24/7, freeing attorneys from constant availability
- AI analyzes your firm's entire dataset to identify which case types are most profitable
Considerations Before You Invest
AI is only valuable when implemented thoughtfully. Therefore, before investing in AI tools, law firms should address these critical considerations:
AI Makes Mistakes: High-profile cases have shown that AI tools can fabricate legal citations in briefs. As per the ABA Model Rule 1.1, a Lawyer must have the requisite skills, knowledge, thoroughness, and preparation necessary to represent a client competently; adopting an AI application will not change this standard or the lawyer’s responsibility. A Lawyer or law firm must also be responsible for any documents they generate, all research done on behalf of clients, and all correspondence with clients.
Training Isn't Optional: Simply providing an attorney with an AI tool does not equate to a competent use of it. An attorney must know how AI functions and be able to identify errors produced by AI tools. Most importantly, they must be well-versed in using them responsibly in accordance with professional conduct rules. Without proper training, you're at risk of making serious errors.
The Generational Adoption Gap: 28% of Millennial lawyers use AI regularly compared to just 5% of Baby Boomers. This significant difference between both generations is not a result of their age differences, but rather how both generations have been socialized to feel comfortable with new and emerging technology. Because of this gap, law firms need to take proactive steps to bring all generations to the same level of confidence with AI. As Colin Pearce, founder and CTO at Inderly, advises, the simplest way to ensure successful adoption is to “consider the needs and preferences of all generations when choosing software.” When firms select tools that everyone can use confidently, the technology delivers its full value.
The majority of law firms now operate on cloud-based systems. One of the main reasons for this is that 87% of attorneys reported preferring to work at a firm that invests in new technology (or ‘tech-savvy environment’). As per one report, 76% of legal organizations have adopted cloud-based remote working technologies. The most commonly adopted tools are video conferencing (79%), e-signature (78%), and e-filing (76%).
Attorneys who work remotely benefit from this technology because it removes the limitations that have historically constrained legal practice to physical offices. Now, attorneys can respond to urgent client needs while at the courthouse waiting on a hearing and complete paperwork while commuting to/from work. This level of flexibility enables the attorney to maintain a balance between work and home life while ensuring billable hours are preserved and not lost to travel time.
Addressing Real Concerns
Even though there are many benefits to cloud-based technology for your legal business, security is still a major concern. The 2024 Data Privacy Trends Survey conducted by U.S. Legal Support revealed that 20.92% of law firms experienced a cyberattack within the past year 2024. However, when asked about their choice of vendor, 70.86% of respondents said they chose a vendor based on its data privacy policy.
The above data illustrates that security is the foremost concern, which is why law firms should choose platforms that offer strong encryption, strict access control, and clearly defined privacy policies.
High-profile data breaches make headlines every year, and many law firms may not know that 39% of all law firms reported experiencing a cybersecurity breach in the past year, according to Arctic Wolf and Above the Law. What's even more alarming is that, among those firms that were breached, 56% lost confidential client data.
But here's where this becomes a business opportunity from the perspective of the law firm. According to the 2025 Integris Report, 37% of clients would be willing to pay premium pricing for a law firm with excellent cybersecurity. On the other hand, 66% of clients stated they would not work with a law firm still using outdated technology.
"The 2025 Integris Report makes it clear: digital trust is no longer optional. For law firms, cybersecurity and IT investment are no longer back-office functions—they're front and center, impacting client trust, satisfaction, and willingness to pay."
Your cybersecurity posture is now part of your value proposition. Clients are researching it. Sophisticated clients are asking about it in Requests for Proposals (RFPs). Some are making it a requirement for engagement.
What Strong Cybersecurity Looks Like
Strong cybersecurity requires specific protections beyond basic antivirus software:
- It should have multi-factor authentication
- Settings should be set to zero-trust by default, and continuously validating access
- There should be end-to-end encryption that makes data unreadable without proper decryption keys
- It should include proactive threat detection that uses AI to identify suspicious patterns before damage occurs
Despite knowing what strong cybersecurity requires, most firms are still not equipped with the basic defenses necessary to respond to modern threats. As per the ABA Cybersecurity TechReport, only 34 percent of law firms have an incident response plan (which decreased from 42 percent last year). That means those firms are hoping that they won't be targeted rather than preparing for when they are.
"The ultimate challenge is maintaining an agile defense against evolving cybersecurity threats, while adhering to our clients' rigorous compliance standards," notes Aird & Berlis Law Firm
Selection Criteria
Client expectations of law firms to protect their information and data as securely as banks protect their money. The best way to meet Client expectations is to implement the following recommendations:
- Strong authentication controls
- Proven encryption standards
- Security tools that have been successfully tested and meet the Bar Association Standards
Additionally, you should consider security solutions that integrate with your practice management and billing systems, so that your sensitive information is protected throughout your firm's entire business process.
This guide has shown you where legal technology is heading and has helped you understand how it has already changed the way many competitive law practices operate. You now understand that AI adoption isn't optional; instead, cloud-based systems have become standard for remote work flexibility, and that cybersecurity directly impacts client trust and willingness to pay premium rates.
Prioritize cybersecurity infrastructure first if you handle sensitive client data, because clients won't work with firms using outdated technology. Adopt cloud-based practice management when your attorneys need remote access and work-life balance. Your software investments should address specific operational problems in your practice, not just follow industry trends.