Key Insights from the 2025 Legal Industry Report

The 2025 Legal Industry Report, recently published by AffiniPay, serves as a critical resource for law firms navigating the evolving landscape of technology adoption. By analyzing the behaviors and practices of over 2,800 legal professionals, the report provides essential insights into how technology can enhance workflow and bolster profitability across various practice areas.

Growing Interest in Generative AI

As generative AI continues to dominate discussions in the technology sector, its implementation within legal practices has notably increased. According to the report, 31% of legal professionals utilized generative AI tools in 2024, up from 27% in 2023. This growth in adoption is particularly pronounced among specific practice areas:

• Immigration: 47%
• Personal Injury: 37%
• Civil Litigation: 36%
• Criminal Law: 28%

However, the broader adoption of AI at the firm level saw a slight decrease, with only 21% of firms embracing generative AI in 2024, down from 24% in the previous year. This trend may reflect a cautious approach among firms, as many still experiment with AI through pilot programs rather than full-scale integration.

Enhanced Profitability Through Financial Management Tools

The report also underscores the growing reliance on specialized financial management software, crucial for streamlining operations within law firms. Responses indicate that:

• 37% of firms utilize legal accounting software integrated with their practice management systems.
• 16% rely on billing software with built-in accounting features.
• 11% employ software that is integrated but not native to their law practice management platform.
• 16% have adopted independent legal accounting tools.

The impact of these tools is significant. Many firms reported regaining up to five hours each month in productivity, with notable results indicating savings of up to 15 hours for some. Coupled with invoicing software, which 80% of surveyed professionals use, the overall impact on productivity and financial health is clear.

Rise of Online Payment Processing

The findings also highlight a trend toward the adoption of online payment processing solutions. In 2024, 82% of firms accepted credit and debit cards, an increase from 78% in 2023. This shift has not only streamlined payment workflows but also improved collection rates. More than a third of respondents (35%) reported saving one to five hours each month through these systems, with 59% witnessing improved collection rates.

Embracing Remote and Hybrid Work Models

Remote and hybrid work environments have become commonplace in the legal industry, with approximately 75% of firms utilizing cloud-based tools for remote operations. Key technologies facilitating this transition include:

• Videoconferencing: 79%
• E-signatures: 78%
• E-filing: 76%

Regarding work models, 28% of firms operate fully in-office, while 40% adopt varying degrees of remote or hybrid schedules. While participation in virtual court proceedings has remained consistent, many professionals express a preference for in-person hearings, especially in civil litigation and personal injury cases.

Conclusion

The AffiniPay 2025 Legal Industry Report provides pivotal insights into how legal professionals are adapting to technological changes. Increased interest in generative AI, enhanced financial management practices, and a robust shift toward remote work are shaping the future of law practices. The data emphasizes the importance of embracing technology to foster efficiency, maintain competitiveness, and improve overall profitability.

Nicole Black, an attorney and legal technology strategist, authored this analysis and serves as the principal legal insight strategist at MyCase. With extensive expertise in the intersection of law and technology, she contributes valuable insights through her writings and public speaking engagements.