A new survey from Actionstep reveals a rising trend among midsized law firms to consider technology, especially AI, as pivotal for future success. The 2025 US Midsize Law Firm Priorities Report emphasizes that 87% of legal professionals see technological investment as crucial for their firms. AI, in particular, is expected to grow in importance, with 54% of respondents anticipating greater future value from AI despite only 30% recognizing high value today.
The study, which involved 264 U.S. legal professionals from firms boasting 50-250 employees, also sheds light on the prevalent issue of technological fragmentation. Lawyers are typically using an average of 6.6 different tools for handling single client matters. This fragmentation results in operational inefficiencies, notably affecting client service and internal workflows. Almost half of those surveyed (45%) find maintaining multiple records a significant hurdle, with 44% reporting inefficient time management due to disjointed systems.
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One critical finding is that 73% of professionals agree their current technology isn’t set up to support their workflows effectively, and a lack of confidence in data accuracy only worsens this scenario. The fragmentation of technological tools has tangible drawbacks with a significant impact on non-billable time, as professionals spend considerable hours on data entry across systems, time tracking, and more. An overwhelming 99.6% of respondents see potential benefits in leveraging a single, integrated platform.
In terms of AI adoption, firms are experimenting with these technologies across legal research, document drafting, and task automation—areas demanding substantial time investment. This suggests a strategic application of AI where it promises the most immediate effect. Crucially, 61% prefer AI technologies to be integrated into existing tools, indicating a strong preference for systems that mesh seamlessly into current workflows.
Looking ahead, midsized firms are prioritizing technology investments in areas like legal accounting, time tracking, matter management, and client payment systems. With only 28% having implemented legal accounting applications to date, there’s a clear gap and a high motivation to boost tech spending in 2025.
Beyond workflow improvements, the ties between technology and client relationships are prominent. A striking 88% of firm professionals believe technology can enhance client relations, with emphases on collaboration and work quality. Moreover, 99% agree that clients would also benefit from increased technology investments.
Technological advancements also promise considerable benefits to law firm employees, mostly in the form of increased automation leading to more time for high-value work and improved work-life balance. Both lawyers and administrative support roles acknowledge these benefits, although their preferences differ slightly.
As midsized law firms navigate this competitive landscape, strategic technology adoption stands to offer substantial advantages. Integrating solutions to reduce administrative burdens and bolster internal efficiency and client-facing operations will be key. As the Actionstep analysis suggests, technology can and should play a fundamental role in making firms more competitive, not just operationally efficient.