The legal industry is entering an era of transformation. Rising costs, evolving regulations, and technological change are pushing legal professionals to rethink how they work. According to our latest survey of 800+ UK lawyers, 45% of respondents cite increasing costs as their top concern, while 40% struggle to keep up with legal changes and new technology. Staying current on legal precedent and advancements in legal technology is becoming critical.
Breaking the data down further, public sector (60%) and academic professionals (65%) report the greatest difficulty in keeping up with regulatory updates, while 52% of large law firms say they are challenged by the pace of technological advancement. Cost concerns are nearly universal, affecting law firms of all sizes. Many are also reviewing long-standing clauses like the force majeure clause in contracts to plan for uncertainty.
Relying on legal expertise won’t cut it. Success in the coming years will also depend on a firm’s ability to control costs, stay ahead of evolving regulations, and embrace new technology like law firm software and legal research platforms.
So, how can legal professionals turn these challenges into opportunities? This blog explores the key issues and what firms can do to stay ahead.
From rising salaries to increased office expenses, firms across all sectors are feeling the financial strain, with almost half of legal professions concerned about increasing costs. The burden is felt most acutely in academic institutions (53%), the public sector (51%), and large law firms (49%.) Smaller firms, including solo practitioners, are also grappling with this issue, with 46% citing cost concerns. For many, investing in law firm management software has become essential to control expenses while maintaining productivity.
The reasons behind this financial strain are clear. Salaries for legal professionals continue to rise as firms compete for top talent. The rising cost of talent is also a major factor, with law firms finding it increasingly difficult to attract and retain skilled professionals without offering more competitive salaries and benefits. Some firms are now balancing these costs by outsourcing tasks like due diligence and using legal practice management software to automate workflows. Lastly, investments in legal technology and compliance efforts add to operational expenses.
As costs continue to rise, legal departments are facing more pressure. Law firms may need to raise their fees, however, as clients are demanding greater efficiency and cost transparency, making it harder for firms to simply pass these rising costs onto them. For corporate in-house teams, the challenge lies not just in internal costs but also in the external pressures from clients demanding lower fees and faster results.
To reduce costs, firms and legal departments will need to rethink their approach, from leveraging automation to exploring alternative fee structures. Tools such as case management software and law firm software can play a major role in these transitions.
Laws, regulations, and legal precedents are constantly changing. Keeping track is essential, especially in sectors governed by common law systems. Two-fifths of legal professionals are finding it increasingly difficult to keep up with legal changes. This issue is particularly pronounced in certain sectors, such as the public sector (60%) and academia (65%), where practitioners often work with highly specialised areas of the law. Even in private practice, the concern is widespread, with small (36%) and medium-sized firms (29%) also feeling the pressure.
Without a proactive approach to research, firms are at a greater risk of missing key legislative changes which can undermine their ability to advise clients accurately and in real-time. In-house legal departments, particularly in corporate settings (47%), must also stay on top of regulatory changes that could have costly consequences for business operations.
The best way to address this challenge would be to invest in legal research tools that provide timely updates. Tools like Lexis+ provide court judgments within 24 hours, along with case digests and enactments published throughout the day. Users can set up email alerts for relevant legislative changes, while features like historical versioning and legislative timelines help track how the law has evolved.
Subscriptions to legal news outlets, webinars, and knowledge-sharing can also help professionals remain agile and well-informed.
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The rapid pace of technological change presents both an opportunity and a challenge for the legal profession. New AI-driven tools have the potential to transform how firms operate. However, many legal professionals (40%) are struggling to adapt. This is particularly true for larger firms (52%) and the academic sector (59%), where there is a growing need to adopt new tools to remain competitive and efficient. In contrast, smaller firms and solo practitioners (33%) and the bar (30%) appear to be less concerned but still face the challenge of adopting technology in a way that aligns with their specific needs.
The pressure to integrate new technologies can be overwhelming, especially when legal professionals are unsure of which tools will provide the most value. This is largely due to the higher costs associated with new technologies as well as concerns over cybersecurity and data privacy. For many legal professionals, the transition from manual processes to automated systems is a daunting one. Adopting new tools often requires both financial investment and time to retrain staff. As technology evolves, client expectations also shift. Clients are increasingly demanding more efficient, tech-driven legal services. For firms that fail to modernise, this can result in a growing digital divide, where better-resourced firms gain an edge. Legal departments and firms that fall behind risk being outpaced by competitors.
To stay ahead, firms should focus on user-friendly, scalable legal tech solutions like Lexis+ AI. Lexis+ AI automates time-consuming tasks such as document review, case summarisation, and drafting, making it easier for legal teams to adopt AI-driven workflows without requiring significant upfront investment or extensive technical expertise.
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Investing in tech training and partnering with legal tech vendors for tailored solutions can begin to bridge the gap between early adopters and those hesitant to embrace change.
Rising costs, evolving laws, and the pressure to adopt new technologies are demanding attention. The results demonstrate a broad consensus across the legal sector that these concerns will significantly impact operations in the coming year. Legal professionals must take a proactive approach by balancing financial constraints, staying up to date with legislative changes, and embracing new technologies. Firms that invest in innovation and adopt flexible strategies will gain a competitive advantage and be better positioned to navigate the ever-changing landscape.
Find the full survey results here.
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