The continuous advancements of legal technology represent more than just a fleeting trend; they signify a transformative shift in how law firms will operate and interact with their clients in the coming years.
My company provides tech tools for the legal industry, and from my perspective, law firms that embrace technology can position themselves more confidently in the market and gain a competitive edge through their ability to adapt to shifting client service demands.
Let’s break down the top legal tech trends you can expect to see in 2025.
Trends To Watch This Year
- A Focus on Client Experience and Technology-Driven Client Services
Client expectations have shifted over the years. Whether it’s real-time updates or scheduling, today’s clients often expect better communication and transparency from their law firms throughout the entire case lifecycle. I expect advancements in client service and providing more accessibility through technology will continue this year.
- Evolution Of Pricing Models in Legal Services
I also believe we could see more innovative pricing models offered by firms, such as subscription-based and value-based pricing, which would reflect the change we are seeing in client expectations. These types of pricing models can allow for easier financial planning and give law firms the ability to scale as needed.
- Cloud Computing, Remote Work, Globalization and Cross-Border Legal Services
Over the past few years, the use of cloud-based solutions by law firms has grown to 70%, according to the American Bar Association (registration required). This shift can support hybrid and remote work arrangements, which have become a common practice in many firms and reflect broader changes in employment patterns. Moreover, embracing flexible work models can open growth opportunities for firms to provide cross-border legal services and expand their reach and expertise into new regions.
- Legal Analytics and Data-Driven Decision Making
There’s a growing focus on leveraging legal analytics to inform the decision-making process for law firm strategies and operations. For example, firms can use analytics to help assess risks and make more informed decisions, which can lead to improved efficiency and client satisfaction.
Several law firms are already doing this, but this year, I believe we’re going to see more businesses use historical data analytics as a backbone of their strategic decision-making.
- Automation Of Routine Legal Tasks
Legal software that is used to automate operational tasks has been gaining prominence as next-gen lawyers enter the industry. Some law firms are now using automation to handle repetitive tasks such as document drafting or time and expense tracking. These types of tools can make it faster to complete daily administrative tasks and free up time for legal teams to focus on high-priority activities.
- Integration Of Artificial Intelligence
It should come as no surprise that one notable trend is the prevalence of artificial intelligence (AI) use in legal departments. A report (registration required) from Wolters Kluwer said 76% of legal departments are using generative AI at least once a week.
This year, I believe we will see more AI advancements roll out across the space, and, with it, more law firms will adopt AI solutions to help tackle legal challenges. As a way to incorporate AI into their processes more effectively and efficiently in 2025, I also think the industry is likely to see new roles dedicated to championing AI training and adoption. This position would help guide employees in safely and effectively harnessing AI, evaluating tools and overseeing pilot programs to identify opportunities for automation while preserving quality.
- AI In Mergers and Acquisitions
I am certainly expecting an increase in AI-driven mergers in 2025. We’re already seeing that large law is in M&A motion, as evidenced by the many mergers we saw in 2024. In 2025, I expect that same type of activity to make its way to smaller and mid-sized law firms, which are often looking to step up aggressively, expand their regional footprints and grow their practice areas.
- Cybersecurity And Data Privacy
To ensure protection against digital threats, I expect more law firms to adopt robust cybersecurity measures to ensure compliance with data privacy regulations and safeguard their operations. Doing so will put preventative measures in place against cyber threats like phishing and data breaches. As stated above, with more firms moving to a cloud-based environment for remote work, the use of SaaS platforms to uphold data security and streamline law firm operations may also grow in 2025.
Preparing Your Practice For 2025 And Beyond
The adoption of technology is sweeping across the legal industry with no signs of slowing down. Thoughtful planning and proactive firm-wide communication will help prepare your firm for a smooth implementation when adopting new tech that’s suitable for your practice. Here are a few best practices law firms should keep in mind when introducing new tech this year:
- Define the problem and set clear goals.Before implementing new technology, identify your “why” behind the adoption. Whether your firm is aiming to streamline case management, enhance data security or improve client communication, it’s important to engage departments and involve key stakeholders. Encouraging this feedback during the implementation process can help identify any pain points and opportunities.
- Invest in training programs.Legal departments can often be hesitant to adopt new tools. To address any resistance to change, communicate the benefits of the new technology, take part in a trial or pilot program to help employees get comfortable with changes, and invest in ongoing training and support to ensure staff feel confident with any new systems.
- Conduct a comprehensive evaluation of the solution.Any new technology will be an extension of your services, so a thorough evaluation of the company’s reputation, support services and commitment to product updates is essential. Additionally, ensure the solution would address inefficiencies in your current processes; prioritize user-friendly interfaces; consider whether the technology offers flexibility and scalability that could support you in the future as you grow; and verify the technology upholds industry standards for protecting data security.
By keeping these trends and strategies for implementation in mind, law firms can successfully adopt new technologies and ultimately position themselves as future-ready businesses to better serve their clients in 2025 and beyond.
Written by Daniel Farrar, originally published on Forbes.