The Legal Industry Report 2025

Niki Black is an attorney, author, journalist, and Legal Technology Evangelist at LawPay, the #1 legal payment processor.

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 law firm AI policies.

Personal Use vs. Law Firm Use of Generative AI

Personal Use | Law Firm Use*
2024: 31% | 21%
2023: 27% | 24%

*Respondents that 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.

Attorneys increasingly use AI to assist with business operations. 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 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. AI-driven 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 decision-making, 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 firm data assists in identifying the business trends, client preferences, and performance metrics that drive profitability.

Finally, AI tools for correspondence drafting, brainstorming, and data analysis significantly reduce the time lawyers spend on non-billable tasks, improving overall productivity and financial health.

Generative AI Adoption Varies Widely by Practice Area

Immigration practitioners led the way in individual AI adoption, with 47% using AI personally for work-related tasks. Other top practice areas for individual AI usage included personal injury (37%), civil litigation (36%), criminal law (28%), family law (26%), and trusts and estates (25%).

AI adoption rates tell a different story at the firm level. Civil litigation firms took the lead at 27%, followed by personal injury and family law firms (20% each). Trusts and estates firms and criminal law practices tied at 18%, while immigration firms trailed at 17%.

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.

The data highlights AI’s appeal for high-volume, repetitive tasks. However, barriers such as training needs, ethical concerns, and costs continue to limit broader adoption, particularly at the organizational level.

The Impact of Generative AI

Among respondents who reported using AI tools at work, the majority said they were heavily engaged with the technology, with 45% incorporating it into their daily workflows and 40% using it weekly.

These frequent users primarily leverage AI for tasks such as drafting correspondence (54%), brainstorming ideas (47%), and conducting general research (46%).

How Legal Professionals Are Using AI:

• Improving persuasiveness of briefing language
• Summarizing online meetings
• Drafting social media posts
• Business management
• Translation
• Summarizing medical records
• Drafting blog posts
• Marketing and branding
• Business planning and development
• Drafting emails and text messages

At a firm-wide level, 61% of respondents reported that AI adoption has “somewhat” increased efficiency, while 21% noted significant efficiency improvements. Only a small fraction (2%) experienced any decrease in efficiency.

On an individual level, most respondents using AI tools reported time savings:

• 65% saved between 1 to 5 hours per week
• 12% saved 6 to 10 hours
• 7% saved 11 or more hours weekly

These findings suggest that generative AI enhances firm-wide productivity and streamlines individual workflows, offering tangible benefits in time management and task execution.

Looking Ahead: Strategic Technology Adoption

The data points to a clear imperative: firms must adopt a strategic approach to technology integration to stay competitive. Ready to modernize your firm’s operations and get paid faster? Book a LawPay demo today.