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Traditional practices are being challenged by technological advancements and changing client expectations. To thrive, law firms must innovate. But where should they focus their efforts? This blog identifies key areas ripe for innovation, providing a roadmap for law firm leaders to navigate the future. For more in-depth information on innovation in the legal sector, read our new report.

The integration of artificial intelligence (AI) into legal services is transforming the industry. However, many firms are lagging. A January 2025 UUÂãÁÄÖ±²¥ survey revealed that only 18% of private practice lawyers believe their firm is fast or very fast at implementing new technology. Laura Hodgson, AI Lead at Linklaters, emphasises the need for a mindset shift: "Law firms have more to offer than the knowledge in each lawyer’s head: institutional data and new workflows can transform the value provided to clients."

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Efficiency is crucial in legal practice, yet many firms are hindered by outdated processes. More than half (52%) of private practice lawyers rate their firm's legal research speed as adequate, slow, or very slow. Darren Mitchell, Chief Operating Officer at Simmons & Simmons, highlights the importance of knowledge management: "It's key for driving change in how we structure and utilise core documents to enable effective use of AI-powered tools."

Personalised services and efficient communication. Hélder Santos, Head of Legal Tech and Innovation at Bird and Bird, believes innovation should focus on the client experience: "Enhancing client experience through personalised services and efficient communication builds trust, while technology streamlines workflows and adds value."

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Data is a powerful tool for law firms, yet many are not leveraging it effectively. More than half (58%) of legal professionals say their firm is slow at using data and analytics. Deborah Finkler, Managing Partner at Slaughter and May, notes the potential of technology: "We are focusing on practice areas where new technology can make the most difference – looking at how we can deliver legal advice even more effectively."

Innovation should align with a firm's business goals to maximise impact. Nick West, Chief Strategy Officer at Mishcon de Reya, advises: "One legal department's priority might be trying to drive productivity improvements into a high-volume contracting process, whilst another's might be creating a better 'legal front door' due to an overwhelming number of requests."

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