The legal industry is in the middle of a major transformation, and the latest data proves it. AllRize recently released the findings of its 2025 Legal Technology and AI Adoption Report. The nationwide survey of nearly 100 law firms covered some of the most pressing issues facing attorneys in the modern legal age including technology adoption, AI usage, operational challenges, and workplace dynamics.
The findings reveal an evolving profession where smaller, more agile firms are leading the way in adopting technology and artificial intelligence, while larger organizations are still testing the waters. The report also uncovers where the industry stands on issues such as work-life balance, billing models, technology pain points, and more.
Here is a recap of the research findings:
AI Moves From Buzzword to Business Tool
More than 60% of survey respondents are already incorporating AI tools into their work routines. What are they using it for? Non-legal writing, such as email and marketing, tops the list at almost 50%. Other popular use cases are legal research, document review, and meeting notes. Almost half of respondents cited time savings as the primary advantage of using AI. However, firms are still moving with caution. Security and accuracy were cited as significant concerns by almost a quarter of respondents, and 18% of respondents acknowledged they don’t yet know how to maximize the value of AI.
Key findings:
- 61.1% of survey respondents are already incorporating AI tools into their work routines
- 18.8% of respondents report “no plans” for AI adoption
- 51.8% of respondents said they are using AI with no guidance or support
- 32.9% of respondents report having an established policy on how AI can be used
Work-Life Imbalance
The report highlights a long standing issue in the legal industry and confirms what many attorneys already feel: long hours, stress, and limited work-life balance. Despite advancements in technology and efficiency tools, many attorneys report working well beyond the standard 40-hour work week, particularly partners and senior-level associates. Almost one-third of respondents listed excessive workload as their primary source of stress, and 14% cite stressful firm culture as their primary source of stress.
Key findings:
- 21.2% of respondents regularly exceed 50 hours weekly
- 9.4% of respondents work more than 60 hours each week
- 37% of partners report workweeks of 60 hours or more
- Over 75% of paralegals and administrative staff work 40-50 hours/week
- Only 17.6% of respondents spend more than 80% of their time on billable work
- 20% of employees spend less than 10% of their time on billable tasks
Technology Integration is a Clear Pain Point
The research reveals a clear and critical challenge across the industry: technology integration, particularly software integration. Respondents consistently reported encountering significant obstacles when trying to implement new software solutions, ranging from resistance to change to compatibility with existing systems, to budget constraints.
Key findings:
- 41.2% of respondents are satisfied with how their software applications work together
- 55.3% of firms use 5-10 different software applications
- Resistance to change affects 52.9% of firms attempting new implementations
- 37.6% of respondents say that compatibility with existing systems, and a lack of sufficient product training, are both significant obstacles in new implementations
The Microsoft Advantage
The report found that nearly 90% of law firms already use Microsoft tools, creating a huge opportunity for smarter, more connected legal tech.
There is a compelling opportunity to address the software integration challenges that plague the legal profession. Given that only 41.2% of respondents are satisfied with how their software applications work together, law firms could dramatically reduce complexity by prioritizing legal applications that integrate seamlessly with the Microsoft ecosystem that they’ve already embraced.
Key findings:
- 89.2% of law firms use Microsoft for their general-purpose office productivity tools
- 8.4% use Google for their general-purpose office productivity tools
Hourly Billing Under Pressure, But Still Dominant
The billing practices of respondents show both traditional patterns and emerging innovation. While hourly billing remains the dominant model at 74.1% of firms, many firms now offer multiple billing options. Additionally, there is significant diversity in billing approaches, with 42.4% using contingency models, and 37.6% offering a flat fee structure. While technology and client expectations are driving change in billing practices, only 31% of firms report exploring alternative billing arrangements in the past year.
Key findings:
- Hourly billing is the primary model at 74.1% of firms
- 42.4% of firms use contingency models
- 37.6% of firms offer a flat fee structure
- 13.9% of firms combine multiple billing structures
Key Takeaways
The survey data proves out what many attorneys are living every day: the legal industry is in transition. While seismic changes in legacy industries often come with significant pain points, there is also tremendous opportunity for firms willing to embrace technology and meet clients where they are.
The full report contains a deeper analysis of the topics briefly covered above as well as additional data points such as technology adoption by practice area, recommendations for legal organizations, and more.
Access the full report here.