The legal industry is evolving faster than ever, and those who don’t keep up risk being left behind. Over the next few years, technological innovation, the rise of alternative legal services (ALSPs), and the expansion of non-traditional roles will reshape how legal services are delivered. Is your firm ready for this change? According to our recent survey, law firms are already beginning to feel the need to adjust their strategies to meet these challenges. This blog will look at the drivers behind these changes and what they mean for the future of law.
As the legal industry becomes more reliant on technology, the demand for digital skills is increasing. The results from our latest survey reflect a growing consensus that technology is the future of legal work. 53% of large law firms indicate that technology skills will become increasingly important, followed closely by 46% of small law firms and 47% of academic institutions. As technology continues to shape legal work, professionals are no longer just expected to practice law, they must become fluent in the tools that are driving the industry forward.
Embracing technologies such as artificial intelligence, automation tools, and data analytics is no longer an option. Results show that 71% of lawyers believe delivering work faster is the top benefit of AI and 54% agree it contributes to better client service. With client demands rising, those firms who fail to adopt new solutions like Lexis+ AI will find themselves falling behind competitors who can provide more efficient, innovative, and cost-effective services.
Legal AI solutions are designed to automate routine tasks such as legal research, document review, and contract analysis. These solutions are designed to allow lawyers to focus on more strategic, high-value work - such as nurturing client relationships. As these technologies become more rooted in legal processes, firms that embrace them will be better positioned to offer faster, more cost-effective services to clients.
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While technology offers new opportunities, it also brings new competition. ALSPs are disrupting the legal market by leveraging new technology to deliver services faster and more affordably. 38% of large law firms and 35% of mid-sized firms see ALSPs as a significant threat, even small law firms (27%) are acknowledging the challenge these providers bring. The real question for firms isn’t whether to embrace ALSPs, but how to adapt and stay competitive in a market where these services are gaining popularity.
Large law firms that have traditionally relied on high fees for legal services now risk losing clients to more efficient, lower-cost alternatives. Mid-sized firms face a different kind of pressure, while they may not have the scale of large firms, they often occupy a unique selling point of offering more specialised services. ALSPs, however, can undermine them on the delivery of routine legal tasks. Even small firms are feeling the pinch. These firms need to balance cost-effective solutions with maintaining their value proposition through specialised expertise. However, ALSPs make it possible to deliver faster, cheaper services, which is increasingly what clients want. Small firms must adapt by embracing technology to stay relevant, or risk losing clients to these more agile competitors.
For many law firms, ALSPs present a challenge because they offer a more flexible, cost-effective alternative to traditional legal models. By utilising technology and automation, ALSPs can deliver services faster and at lower costs appealing to clients who increasingly demand efficiency without sacrificing quality. Law firms, particularly large and mid-sized must adapt to this new competitive environment. This means rethinking pricing strategies, integrating more technology into practice, and adopting more innovative service models to remain competitive. Firms that fail to keep pace with ALSPs’ ability to leverage technology risk losing their place in the market.
Another crucial shift taking place is the increasing demand for non-legal roles such as project managers, data analysts, and operations professionals. The public sector (37%) shows the highest level of interest in hiring non-legal roles, with large law (28%) and small law firms (24%) not far behind. This shift is happening because law firms recognise that managing technology, client relationships, and large-scale projects requires people with expertise beyond just legal knowledge. However, this trend is not just for the big fish, small law firms (24%) are also investing in these roles to ensure their survival in an increasingly tech-driven market.
Non-legal professionals are essential in optimising the day-to-day operation of law firms. Project managers can oversee the implementation of new systems while making sure that technology is effectively integrated into practice. On the other hand, data analysts can evaluate and interpret data to improve decision-making and help firms identify efficiencies. These roles enable lawyers to focus on legal work while delegating operational tasks to specialists. For mid-sized and large law firms, expanding these non-legal teams is a strategic move that positions them to deliver more efficient services that can better meet client expectations.
Regardless of the size of your practice, embracing these shifts is essential to remaining competitive. Law firms that effectively integrate technology, adapt to the rise of ALSPs, and expand their teams to include non-legal professionals will be the ones best positioned to succeed in the coming years.
As we look ahead, it’s clear that the future of law will require more than just legal expertise. A forward-thinking approach to technology, collaboration, and efficiency is essential in a rapidly changing industry. Firms that can build multidisciplinary teams, leverage the power of AI and innovate their service models will lead the way in an increasingly competitive and fast-paced legal market. The question isn't whether the legal industry will change, it’s how quickly you can evolve to meet the challenges ahead.
Look at the full results from our latest survey.
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