An
overwhelming
87%
of
professionals
in
midsized
law
firms
view
investing
in
cutting-edge
technology
as
critical
for
their
firm’s
future,
with
expectations
for
AI’s
value
growing
significantly,
according
to
the
2025
US
Midsize
Law
Firm
Priorities
Report,
released
today
by
law
practice
management
company
Actionstep.
The
report,
which
surveyed
264
U.S.
law
firm
professionals
from
firms
with
50-250
employees,
reveals
that
while
30%
of
respondents
currently
see
high
value
in
AI,
54%
expect
AI
to
deliver
even
higher
value
in
the
future.
Technological
Fragmentation
But
the
report
highlights
a
significant
pain
point
for
midsized
law
firms,
finding
that
the
average
professional
uses
6.6
different
tools
to
manage
a
single
client
matter.
This
fragmentation
creates
numerous
operational
inefficiencies
and
data
management
problems
that
affect
both
client
service
and
internal
workflows.
Nearly
half
(45%)
of
respondents
cite
maintaining
multiple
records
of
client
and
matter
information
as
a
major
challenge,
while
44%
report
inefficient
time
management
resulting
from
juggling
disconnected
systems.
The
consequences
of
this
technological
fragmentation
extend
beyond
mere
inconvenience.
Perhaps
most
concerning,
73%
of
law
firm
professionals
report
that
their
current
technology
is
not
set
up
to
support
the
way
they
actually
work,
and
83%
lack
confidence
that
client
or
matter
information
is
up-to-date
and
accurate
when
they
access
it.
This
represents
a
significant
risk
for
firms
whose
business
depends
on
the
accuracy
and
timeliness
of
client
information.
The
report
also
reveals
that
disconnected
tools
significantly
impact
non-billable
time.
Entering
data
in
multiple
systems
(40%)
was
most
frequently
reported
as
the
non-billable
task
that
law
firm
professionals
spend
the
most
time
on.
Other
time-consuming
non-billable
tasks
include
billing
and
collections
(37%),
marketing
and
business
development
(36%),
time
tracking
(34%),
and
document
updates
and
version
control
(34%).
This
trend
has
been
increasing
over
the
years,
suggesting
that
the
problem
is
growing
rather
than
being
resolved.
Given
these
challenges,
it
is
not
surprising
that
nearly
all
respondents
(99.6%)
see
benefits
in
using
a
single
platform
to
manage
their
practice,
matters
and
clients
instead
of
switching
between
different
tools.
The
advantages
of
such
integration
are
multifaceted
and
impact
every
aspect
of
firm
operations,
the
report
suggests.
The
primary
benefit
of
a
single
platform,
respondents
believe,
is
improved
efficiency
(47%),
followed
by
increased
confidence
in
data
accuracy
(42%),
improved
work
quality
(41%),
and
centralized
visibility
into
business
performance
(37%).
Additional
benefits
include
faster
staff
training
(36%),
reduced
costs
(35%),
and
higher
client
satisfaction
(34%).
These
advantages
directly
address
many
of
the
pain
points
identified
by
respondents
regarding
disconnected
tools.
AI
Adoption
and
Preferences
Like
other
recent
surveys,
the
report
offers
insights
into
how
midsized
law
firms
are
engaging
with
AI
technologies.
Law
firm
professionals
report
experimenting
with
AI
in
several
key
areas
including
legal
research
(36%),
document
drafting
(33%),
and
workflow
and
task
automation
(33%).
Insofar
as
these
areas
represent
some
of
the
more
time-consuming
aspects
of
legal
work,
these
findings
suggest
that
firms
are
deploying
AI
where
it
can
have
the
greatest
immediate
impact.
When
it
comes
to
implementing
AI,
the
report
reveals
strong
preferences
about
how
these
technologies
should
be
introduced.
Six
in
ten
(61%)
respondents
prefer
AI
capabilities
to
be
integrated
into
tools
they
already
use
rather
than
deployed
as
standalone
solutions.
This
preference
for
integration
over
separate
AI
tools
is
particularly
pronounced
among
younger
legal
professionals,
suggesting
that
seamless
integration
will
be
increasingly
important
for
talent
attraction
and
retention.
The
report
also
reveals
generational
differences
in
AI
adoption
preferences
that
firms
should
consider
when
planning
their
technology
strategies.
Younger
generations
show
a
stronger
preference
for
having
AI
capabilities
added
to
their
existing
toolsets,
which
has
implications
for
how
firms
should
approach
AI
implementation
to
maximize
adoption.
Technology
Investment
Priorities
Looking
ahead,
the
report
identifies
several
specific
areas
where
midsized
firms
see
opportunity
for
technology
investment
in
the
coming
year.
Legal
accounting
applications
top
the
list
at
39%,
followed
by
time
tracking
(35%),
matter
management
(31%),
billing
systems
(29%),
and
online
payments
(28%).
These
priorities
suggest
that
firms
are
focused
on
improving
their
financial
operations
and
client-facing
payment
systems.
The
investment
priorities
align
with
identified
gaps
in
firms’
current
technology
implementation.
For
example,
the
report
finds
—
shockingly,
I
might
add
—
that
only
28%
of
midsized
law
firms
have
implemented
legal
accounting
applications,
and
only
20%
say
their
firm
has
invested
in
time-tracking
technology.
That
said,
firms
appear
to
be
highly
motivated
to
spend
more
on
technology,
with 59%
of
firms
saying
they
are
“very
motivated”
to
invest
in
technology
in
2025,
believing
that
both
clients
(46%)
and
employees
would
benefit
“a
lot”
from
additional
technology
investments.
Tech’s
Role
in
Client
Service
Of
course,
while
technology
adoption
is
crucial,
it
must
support
broader
business
objectives.
For
mid-sized
law
firms,
improving
client
satisfaction
(43%)
and
managing
business
costs
(41%)
are
the
top
business
priorities
for
driving
revenue
in
2025,
followed
by
diversifying
or
adding
new
practice
or
service
offerings
(39%),
recruiting
and
retaining
talent
(38%),
and
digital
transformation
and
technology
(31%).
The
report
draws
a
clear
connection
between
technology
investments
and
client
relationships.
A
notable
88%
of
law
firm
professionals
agree
that
technology
can
improve
client
relationships.
When
asked
about
past
technology
investments,
improving
team
and
client
collaboration
(38%)
and
producing
consistent
quality
work
(37%)
were
most
frequently
cited
as
motivators
for
firms
to
invest
in
technology
in
the
past
year.
Furthermore,
99%
of
law
firm
professionals
say
clients
would
benefit
at
least
somewhat
from
additional
technology
investments,
with
almost
half
(46%)
saying
clients
would
benefit
“a
lot.”
Tech’s
Benefits
to
Employees
The
report
also
explores
how
technology
investments
benefit
law
firm
employees.
Almost
all
(99.6%)
law
firm
professionals
say
they
would
personally
benefit
from
additional
technology
investments.
Interestingly,
there
are
differences
in
perceived
benefits
between
smaller
and
larger
firms
in
the
midsized
range,
with
46%
of
professionals
at
firms
with
150-250
employees
saying
they
would
benefit
“a
lot”
compared
to
only
26%
at
firms
with
50-150
employees.
The
desire
for
automation
is
particularly
strong.
Almost
all
(99.6%)
law
firm
professionals
say
they
would
personally
benefit
from
using
additional
automation
for
their
work.
The
top
benefits
cited
include
being
able
to
spend
more
time
on
higher-value
work
and
fewer
administrative
tasks
(41%),
knowing
what
tasks
need
to
be
completed
next
(40%),
improving
work-life
balance
(40%),
and
providing
better
service
to
clients
(39%).
There
are
notable
differences
in
automation
preferences
between
legal
staff
and
administrative
support
roles.
Legal
staff
are
more
likely
to
want
automation
to
know
what
tasks
need
to
be
completed
next
(44%
compared
to
38%
of
administrative
support
roles)
and
provide
better
service
to
clients
(43%
compared
to
37%
of
administrative
support
roles).
In
contrast,
administrative
support
roles
are
more
likely
to
want
automation
to
spend
more
time
on
higher-value
work
and
fewer
administrative
tasks
(43%
compared
to
38%
of
legal
staff)
and
to
improve
work-life
balance
(43%
compared
to
35%
of
legal
staff).
Strategic
Implications
As
midsized
law
firms
navigate
an
increasingly
competitive
landscape,
those
that
strategically
invest
in
integrated
technology
solutions
and
thoughtfully
implement
AI
capabilities
will
likely
gain
significant
advantages,
the
report
suggests.
That
means
that
firms
should
focus
on
reducing
administrative
burdens
through
automation,
consolidating
disconnected
tools
into
integrated
platforms,
ensuring
technology
supports
both
internal
efficiency
and
client-facing
improvements,
and
implementing
AI
in
ways
that
enhance
existing
workflows
rather
than
disrupting
them.
The
Actionstep
analysis
concludes
that
technology
adoption
isn’t
just
about
making
internal
processes
smoother
—
it
is
also
critical
to
enhancing
the
client
experience.
The
overwhelming
consensus
that
clients
would
benefit
from
additional
technology
investments
reinforces
the
necessity
of
client-centric
solutions.
Firms
see
a
strong
connection
between
technology
and
client
satisfaction,
but
must
ensure
they’re
offering
solutions
that
make
working
with
their
firm
easier
for
clients.
“In
a
landscape
where
large
firms
have
deep
resources,
midsize
firms
must
strategically
apply
technology
across
all
areas
of
their
business
to
level
the
playing
field,”
the
report
recommends.
“The
key?
Using
legal
tech
not
just
for
efficiency,
but
to
enhance
client
service,
firm
profitability,
and
overall
business
operations.”