The legal industry has long been slow to adopt technology due to a myriad of issues, including misalignment created by the billable hour, concerns around security and data privacy, a focus on cost versus value, a lack of technology training, and a fear of job loss. According to the 2022 American Bar Association Legal Technology Survey Report, only 63% of all law firms have practice management software, with usage among small law firms dropping from 61% of respondents to 46% since 2019.

However, COVID-era pressures to automate and optimize, along with a looming threat of AI, accelerated technology adoption in a sector long resistant to thde idea. To add fuel to the fire, momentum has been building over the last three to five years behind a select handful of key trends in the legal landscape. With the proportion of corporate legal budgets spent on technology set to increase from 3.9% in 2020 to 12.0% by 2025, along with law firms increasing tech spending by 7.1% in 2021 and 3.7% in 2022, it’s no secret that the following trends are causing a revolutionary catalyst for growth in the legal tech sector.

Adoption of Cloud-Based Solutions