Navigating Economic Uncertainty: How Law Firms Have Adapted—And What Lies Ahead

Economic headlines, from inflation to market instability, are everywhere, and many lawyers are wondering what it all means for the future of their practice. But the legal industry has faced uncertainty before and adapted successfully.

During the early days of the COVID-19 pandemic, many law firms not only weathered the storm but reimagined how they worked. The lessons learned then can still guide firms today.

In this blog, we draw on Clio’s research to explore how law firms adapted during past disruptions, and how those insights can help you stay resilient in today’s shifting economy.

The Legal Landscape During Early COVID-19

In March 2020, the World Health Organization officially declared COVID-19 a global pandemic. Legal professionals across the world suddenly had to adjust to lockdowns, economic disruption, and a rapidly changing client landscape.

When we checked in with law firms during those early months, the challenges were clear:

• 76% of lawyers reported heightened stress and anxiety.
• 60% saw fewer potential clients reaching out.
  24% experienced lost revenue as clients struggled to pay legal bills.

Although firms were cautious, they didn’t sit idle. Most lawyers were preparing for difficult months ahead while also rethinking how they worked—and how to continue serving clients under new constraints.

Shifting To New Ways of Working

As the legal profession adjusted to a remote-first world, many firms adopted new workflows out of necessity—pivoting to virtual meetings, digital intake forms, and cloud-based case management.

Interestingly, nearly 1 in 3 lawyers reported that their firm had started doing more to attract clients than before the pandemic began. Others broadened their services to reach new types of clients.

The takeaway? Adaptability mattered, and technology became a lifeline. A striking 88% of lawyers said that automating more parts of their practice would improve client service.

Technology's Role in Staying Competitive

At the beginning of the pandemic, technology helped law firms maintain continuity. Over time, it became a major competitive differentiator. Once temporary solutions, like remote client meetings and e-signatures, evolved into permanent expectations from clients.

Firms that adopted tools like online payment systems, CRM platforms, and secure client portals performed better overall. Many saw higher caseloads and stronger revenue per lawyer, even as the economy remained uncertain.

By the end of 2020:

• 68% of lawyers said tech helped them deliver a better client experience.
• 72% believed cloud software was crucial for the long-term health of their practice.

Clients Are Evolving, Too

It wasn’t just lawyers who changed—clients did, too. During the pandemic, legal consumers became accustomed to fast, digital, and remote-friendly services. This shift in expectations didn’t go away once restrictions eased. Instead, it reshaped what clients now consider standard service.

Today’s clients often expect:

• Convenient scheduling and communication
• Real-time updates on their case
• Paperless, mobile-friendly service options

That means firms that continue to rely on outdated methods may find themselves outpaced by more tech-forward competitors.

Why Investing in Tech Now Matters More Than Ever

Economic slowdowns test every business. But they also create moments of opportunity. Just as forward-thinking firms emerged stronger from the pandemic, law firms today can position themselves for success by embracing change instead of resisting it.

If there’s one lesson from the past few years, it’s this: waiting for stability to innovate is a missed opportunity. The firms that act early often gain the biggest advantage.

Get actionable insights on how to prepare your firm for any climate. Watch Clio’s on-demand webinar, Resilient by Design: Managing Your Law Firm Through Economic Uncertainty.

Preparing For the Road Ahead

It’s understandable to feel uneasy about what’s next. But law firms that lean into change—rather than shy away from it—are more likely to grow through uncertainty.

Whether you’re running a solo practice or managing a team, the steps you take now can set the tone for long-term resilience. Investing in the right tools, systems, and strategies helps you stay agile, meet rising client expectations, and build a firm that thrives in any economic environment.

About the Data

The insights shared in this blog are based on comprehensive research conducted during the COVID-19 pandemic and beyond. Clio gathered feedback from hundreds of legal professionals and monitored performance across tens of thousands of firms, forming the foundation for the annual Legal Trends Report.