ILTA Just-In-Time: The Future of Law Firms Is Not Just About AI in 2025

By Franki Russell posted 02-19-2025 12:40

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Please enjoy this blog by @Debbie Foster, CEO, Affinity Consulting.

Reinvention Over Hype: Why AI Alone Won’t Transform Law Firms

Law firms are missing the real AI opportunity. Despite substantial investments in AI tools, many law firms continue to implement tomorrow's technology with yesterday's mindset—and the results are predictably underwhelming.

The painful truth is that law firms don't have a technology problem, they have a vision problem. The same challenges that have historically limited technology effectiveness - siloed implementations, resistance to change, and misaligned incentives - are now threatening AI adoption. For years, firms have replaced one set of technology frustrations with another, never fully realizing the promised benefits of new technology due to inconsistent adoption and enforcement challenges.

It's a little like Groundhog Day. Firms invest in AI tools without addressing the fundamental issues that will keep them from unlocking AI’s full potential. Outdated business models, disorganized data, and cultures that reward time spent over value delivered are going to hold firms back. In 2025, the winners won't be those with the most advanced AI, but those who leverage it to reimagine what a law firm can be in this era of transformation.

Here’s what law firm technology leaders should be focusing on to drive real transformation in 2025.

1. AI is Forcing a Business Model Shift, and That’s a Good Thing

For years, the traditional law firm business model has been built on time spent rather than value added. The billable hour structure means that the longer a task takes, the more revenue it generates, creating little incentive to streamline processes. AI disrupts that equation. Tasks that once took hours, such as contract review, due diligence, and legal research, can now be done in a fraction of the time.

Some firms will try to limit AI’s impact on billing, fearing that efficiency means lost revenue. But if maximizing billable hours is the goal, why not go back to using typewriters instead of computers? The firms that succeed will rethink how they define and price legal services, focusing on the value they deliver rather than the time it takes to complete a task.

What to Watch in 2025:

• Strategic AI adoption will drive efficiency. Firms that implement AI with a clear strategy will reduce redundant tools, optimize workflows, and maximize the value of their technology investments.

• AI-powered pricing models are emerging. Firms are starting to use data and AI insights to predict costs, improve pricing strategies, and move toward fixed or outcome-based fees.

• Firms that embrace change will gain a competitive edge. The ones that adapt their business models and leverage AI to provide better, faster, more strategic services will come out ahead.

Take Action: Start small. Identify one practice area or client segment where AI-driven efficiencies could support a shift to value-based pricing, and pilot an alternative billing model.

2. AI is Only as Good as Your Data, and Most Law Firms’ Data is a Mess

Every AI system is only as powerful as the data it has access to. Many law firms assume they are the only ones struggling with messy data, but the problem is widespread. At the G100/G200 ILTACON wrap-up session last year, a CIO summed it up perfectly: "My data is everywhere, and everywhere else." Disparate data creates silos that limit AI’s effectiveness.

The challenge isn’t that law firms ignore data governance. It’s that many attorneys are reluctant to delete anything. There’s a deep-seated fear that something might be needed later, leading to a culture of keeping everything. This makes it nearly impossible to implement effective data retention policies. IT teams often lack the authority to enforce data governance because lawyers resist any effort that feels like losing control over their information. Whether a firm can successfully implement AI-driven data strategies depends largely on its governance structure. Firms with strong leadership that enforce policies will make progress, while those with decentralized decision-making will struggle.

What to Watch in 2025:

• A strong information governance strategy will maximize AI’s impact. Firms that prioritize data organization, retention, and accessibility will unlock AI’s full potential and improve decision-making.

• Firms with structured data will gain a competitive advantage. AI tools perform best when they have access to well-managed, high-quality data that supports automation and insights.

• Change management will be critical for success. Lawyers who understand the value of data governance will be more likely to support and adopt AI-driven solutions.

Take Action: Build cross-functional teams that include IT, firm leadership, and practice groups to develop clear, enforceable data retention policies. Provide training that connects data management to real-world benefits for attorneys, and ensure leadership actively supports enforcement.

3. AI Adoption is a Cultural Shift, Not Just a Tech Upgrade

The biggest barrier to AI adoption isn’t just technology. It’s also how law firms approach change, learning, and even how they define efficiency. Many lawyers struggle with basic features in the tools they use every day, like Microsoft Word and Outlook. Expecting most lawyers to intuitively understand and leverage AI is unrealistic.

True efficiency isn’t just about finishing tasks faster - it’s about rethinking how work should be done in the first place. If we were to observe how most lawyers use their technology, it would be obvious that there are better ways to accomplish routine tasks. But those inefficiencies aren’t always obvious to the people doing the work.

Adopting AI isn’t just about changing workflows. It requires a shift in mindset toward continuous learning, habit-building, and structured implementation. Without proper training and support, AI will feel like just another tool that doesn’t quite work the way lawyers need it to.

At the same time, many firms are struggling with tool-hopping. They are experimenting with multiple AI tools without a clear strategy, policy, or training in place. Lawyers try tools they don’t fully understand, quickly decide they don’t work, and move on to the next one. This often results in firms paying for multiple AI tools that do the same thing but are poorly implemented, leading to unnecessary spending and frustration. Firms that succeed with AI won’t just introduce new technology. They will create a structured approach that helps legal professionals integrate AI into their workflows with confidence and purpose.

What to Watch in 2025:

• A structured AI adoption strategy will lead to better outcomes. Firms that approach AI with a clear roadmap will reduce redundancy, improve adoption, and maximize efficiency.

• Upskilling legal professionals will accelerate AI integration. Lawyers who are proficient in foundational technology will more easily adapt to AI-enhanced workflows.

• A culture of continuous learning will drive AI success. Firms that foster ongoing education and structured AI implementation will see the most value from these tools.

Take Action: Establish an AI adoption framework before rolling out new tools. Prioritize hands-on training that builds on existing tech skills. Create structured learning programs that show lawyers how AI fits into their daily workflows. Encourage firm leadership to model AI adoption and support a mindset of continuous learning.

The Bottom Line: 2025 is About Reinvention, Not Just AI

The firms that thrive in 2025 won’t just be using AI—they’ll be redefining what it means to be a law firm in an era where technology drives strategy, efficiency, and value. The question for firm leaders isn't whether to adopt AI, but whether they have the vision to fundamentally reinvent their approach to legal service delivery.