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Law Technology Today

2025

The Legal Industry Report 2025

MyCase

Summary 

  • A survey of 2,800+ legal professionals shows growing personal use of generative AI, while firm-wide adoption lags due to policy and ethical concerns.
  • Law firms prioritize AI tools that integrate seamlessly with existing systems and align with legal workflows and ethics.
  • AI is increasingly used beyond legal work, supporting firm operations like billing, scheduling, and financial decision-making.
The Legal Industry Report 2025
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For the 2025 Legal Industry Report, we surveyed over 2,800 legal professionals and covered a wide range of technologies that impact law firms, including artificial intelligence (AI) and generative AI. We also explored how law firm leaders approached the adoption of essential software, ranging from financial management platforms to tools that enable flexible office arrangements and remote work.

We were particularly interested in tracking changes in AI adoption, so we revisited many of the same questions asked in last year’s survey. AI advancement is occurring at a record pace, but we wondered: Is the legal profession embracing the change? The answer is a lawyerly one: It depends. We found that personal AI usage has increased since last year. At the same time, individual and firm-wide AI adoption varied greatly across firm size and practice areas, showcasing the profession’s diverse approaches to integrating new technology.

Generative AI in Law: Individual Use Rises While Firms Take a Cautious Approach to Adoption

First, let’s look at how individual legal professionals use generative AI for work-related purposes. 31% of respondents shared that they personally used generative AI at work, up from 27% last year. Within the next year, we can expect to see even more significant increases as the technology advances and restrictive law firm AI policies arising from accuracy and ethics concerns are lifted.

AI adoption rates among legal professionals indicate steady interest. However, growth isn’t exponential, likely due to slow law firm adoption and restrictive AI policies.

Personal Use vs. Law Firm Use of Generative AI
Personal Use | Law Firm Use*
2024: 31% | 21%
2023: 27% | 24%
*Respondents who replied “Unsure” accounted for 10% in 2023 and 15% in 2024

Respondents from firms with 51 or more lawyers, though representing a smaller subset of this survey’s participants, reported a significant 39% generative AI adoption rate. By contrast, firms with 50 or fewer lawyers had adoption rates at half that level, with approximately 20% indicating the implementation of legal-specific AI within their practices.

When considering investments in legal-specific generative AI tools, 43% of respondents prioritized integration with trusted software as a top reason. Additionally, 33% highlighted the importance of the provider’s understanding of their firm’s workflows, while 29% expressed greater trust in the output of legal-specific tools compared to consumer-based options. Ethical alignment was a key factor for 26%, and 23% pointed to other considerations unique to their firm.

These findings indicate that adoption decisions are heavily influenced by seamless integration with existing systems, a deep understanding of legal workflows, and confidence in the reliability and ethical compliance of legal-specific AI tools.

Attorneys increasingly use AI to assist with business operations, not just legal work. The report reveals that 54% of legal professionals use AI to draft correspondence, 14% use it to analyze firm data and matters, and 47% expressed notable interest in AI tools that assist in obtaining insights from a firm’s financial data.

From Scheduling to Billing: AI’s Impact on Law Firm Operations

Drafting correspondence, assisting with scheduling, and business decision-making are increasingly common uses for AI technology at law firms. AI scheduling tools can optimize meeting times and avoid conflicts, while billing software with AI integration can reduce errors and streamline invoicing.

AI can also play a role in financial decisions, such as setting competitive pricing strategies and ensuring affordable rates while protecting profit margins.

The advantages of integrating AI into your practice management software are clear:

First, AI-driven automation reduces administrative burdens and minimizes human error, especially with time-consuming tasks like drafting correspondence and preparing invoices.

Second, AI’s ability to analyze data helps firms identify business trends, client preferences, and performance metrics that drive profitability.

Finally, AI tools that assist with writing, brainstorming, and data analysis significantly reduce the time lawyers spend on non-billable tasks, improving overall productivity and financial health.

These trends show that while generative AI is gaining traction, adoption remains uneven due to practical, cultural, and economic factors. Employees often experiment with free or low-cost tools, while firms face pressure to justify more significant investments with proven ROI.

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