Lawyers using ChatGPT and similar AI tools have significant opportunities to enhance their efficiency, improve research capabilities, and deliver faster results to clients.

These tools can draft, summarize, and structure text in seconds, which are powerful capabilities for lawyers who spend much of their time reading, writing, and reasoning. The firms seeing results aren’t outsourcing the law to ChatGPT; they’re using it as a multiplier with strong guardrails, rigorous review, and smart workflows.

This article focuses on ChatGPT for lawyers, showing you how to use ChatGPT in your law firm, detailing where it helps, where it doesn’t, and how to stay compliant. You’ll find field-tested prompts, verification checklists, and concrete examples for research, drafting, and administrative tasks. Throughout, we connect AI use to your broader law firm operations, so you can measure the improvements it makes.

Main Takeaways

Understanding ChatGPT for Legal Professionals

ChatGPT is a large language model (LLM) developed by OpenAI that uses artificial intelligence to understand and generate human-like text based on user prompts. For lawyers who may be unfamiliar with AI technology, think of it as an advanced writing and research assistant that can process queries and provide detailed responses across a wide range of topics, including legal subjects.

Unlike traditional legal research tools that search through databases of cases and statutes, ChatGPT generates responses by drawing upon patterns learned from vast amounts of text data during its training. This allows it to understand context, synthesize information, and provide explanations in natural language that can be immediately useful for legal professionals.

There are shortcomings of ChatGPT’s LLM foundation, however.

ChatGPT Limitations in Legal Contexts

ChatGPT offers significant benefits for legal professionals, but understanding its limitations is crucial to implement it safely and effectively. AI systems can produce convincing but incorrect information, lack understanding of jurisdictional nuances, and may not reflect the most current legal developments.

In “Causal Artificial Intelligence in Legal Language Processing: A Systematic Review,” authors Tritto and Ponce summarize the shortcomings and challenges of using AI tools like ChatGPT in legal contexts:

“The interpretation of legal language through AI models presents interconnected challenges spanning technical, operational, and ethical dimensions... These challenges emerge from the inherent complexity of legal language, technical limitations of current AI approaches, strict legal requirements, operational constraints, and ethical considerations.”

Recognizing and addressing AI hallucinations

A significant concern about using AI in law is the tendency of AI tools to hallucinate. Hallucinations refer to instances where the system generates information that appears credible but is incorrect or fabricated. In legal contexts, this might involve citing non-existent cases, misstating legal standards, or providing inaccurate information about statutes or regulations.

According to Dahl et al. 2024, “LLMs hallucinate at least 58% of the time, struggle to predict their own hallucinations, and often uncritically accept users’ incorrect legal assumptions.”

As law firms begin to use ChatGPT and other AI tools built on large language models, it’s critical to be aware of the tools’ shortcomings and to verify the outputs it produces.

Verification strategies for AI-generated information:

Handling legal nuance and jurisdictional differences

Legal practice involves countless nuances that can significantly affect case outcomes. ChatGPT may not fully grasp subtle distinctions between jurisdictions, recent changes in legal standards, or the complex interplay between different areas of law that experienced attorneys understand intuitively.

Verification steps for jurisdiction-specific information:

In short, LLMs like ChatGPT shouldn’t be relied on to know the law. Their strength lies in retrieving information quickly, summarizing it, and producing initial draft documents for lawyers to then develop completely.

Key ChatGPT Features Relevant to Legal Work

A lawyer is sitting at his desk, drafting a version of a legal document using ChatGPT.

Natural language processing: ChatGPT can understand complex legal questions posed in everyday language and respond with sophisticated analysis, making it accessible to lawyers regardless of their technical expertise.

Assist with drafting legal documents: The tool can generate initial drafts of various legal documents, providing a strong foundation that lawyers can then refine and customize. This saves lawyers precious time and relieves them of this mundane task.

Summarize research: ChatGPT excels at taking multiple concepts or legal issues and synthesizing them into coherent explanations, helping lawyers understand complex interactions between different areas of law.

Respond quickly: Unlike traditional research methods that may require hours of database searching, ChatGPT provides immediate responses that can serve as starting points for deeper investigation.

Why Law Firms Are Adopting AI Tools

Client demands for faster service, increased competition, and the need for greater efficiency are pushing law firms to explore technological solutions that can help them deliver superior results while maintaining profitability.

Recent studies including the 2024 ABA Legal Technology Survey Report indicate that lawyers’ AI adoption has accelerated dramatically, tripling year over year from 11% in 2023 to 30% in 2024. This trend reflects both the maturation of AI technology and the growing recognition among legal professionals that these tools can provide significant competitive advantages when properly implemented.

Meeting client expectations for faster service

Modern clients expect rapid responses and faster turnaround times on legal matters. The traditional model of extensive research and deliberation, while still necessary for complex issues, must be balanced with clients' demands for immediate insights and quick initial assessments.

Using ChatGPT for legal research, for example, enables lawyers to provide faster preliminary analysis by quickly generating starting points for research, offering immediate explanations of legal concepts to clients, and creating initial drafts of documents that can be refined and customized.

Addressing profitability challenges through automation

Law firms increasingly recognize that automating routine tasks can significantly impact both billable hours and overall profitability.

Tasks that traditionally consumed significant attorney time, such as initial legal research, first-draft document creation, and routine legal analysis, can now be accelerated with ChatGPT’s assistance. This doesn't eliminate the need for attorney involvement but shifts it toward review, refinement, and strategic decision-making.

Thomson Reuters’ 2024 Future of Professionals report projects about 200 hours per year saved with current AI, if firms capture improvements via repeatable workflows.

Practical Use Cases for ChatGPT in Legal Practice

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ChatGPT works best as a starting point for legal work, not a replacement for attorney judgment. It can accelerate routine tasks and provide initial drafts that lawyers then review and refine.

Making legal research more efficient

ChatGPT can quickly identify relevant legal concepts and suggest research directions. It helps lawyers frame research questions and understand how different jurisdictions approach similar issues. However, always verify AI-generated research through Westlaw or Lexis.

Crafting your ChatGPT prompts strategically can help produce a more accurate and useful result.

Best practices for research-focused prompts

Sample effective legal research prompt: "Act as a legal researcher specializing in employment law. I'm representing a client who was terminated after filing a workers' compensation claim in California. Provide an overview of potential legal theories for wrongful termination, including relevant statutes and the general elements I would need to prove for each claim. Focus on California law and highlight any recent developments in this area."

Traditional Legal ResearchAI-Assisted Legal Research Methods
Manual database searches through Westlaw/LexisImmediate AI-generated starting points + targeted database verification
Hours spent reading through cases to find relevant informationQuick AI synthesis of key concepts + focused case review
Linear research progressionIterative prompt refinement for comprehensive coverage
Limited to exact keyword matchesNatural language understanding of complex queries

Drafting initial versions of legal documents

ChatGPT excels at creating initial drafts of legal documents that attorneys can then customize and refine, such as engagement letters, NDAs, discovery requests, demand letters, or client updates. This saves significant time on routine document creation while ensuring consistent formatting. However, even when providing structured prompts for legal documents, human review and editing remains essential.

As discussed above, remember that ChatGPT and other AI tools can hallucinate. Therefore, all AI-generated documents must undergo thorough review by attorneys to ensure accuracy, compliance with local rules, appropriate legal standards, and alignment with specific case requirements. AI should never be used to generate final versions of legal documents without professional oversight.

ChatGPT for Legal Research and Analysis

ChatGPT can accelerate legal research by quickly synthesizing information and identifying connections between legal concepts. It provides starting points for deeper investigation through traditional legal databases.

Finding relevant case law and statutes

ChatGPT helps identify potentially relevant case law and statutes for specific scenarios. This is especially useful for novel legal issues or when exploring all possible legal theories. ChatGPT can also summarize case law and the latest trends and developments, but always verify its outputs for accuracy.

Case law research prompts for ChatGPT

Clear and specific prompts like the following examples can help produce the most relevant information when using ChatGPT for legal research. Still, they don’t guarantee a 100% accurate response, so be sure to validate. Examples of case law research prompts might be:

Verification strategies

Creating Effective Legal Prompts: Key Tips for ChatGPT

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The effectiveness of ChatGPT in legal contexts depends heavily on how well lawyers craft their prompts. Generic or poorly structured queries often produce generic responses that provide little value, while well-crafted legal prompts can generate highly useful analysis and starting points for further work.

Understanding how to structure effective legal prompts is essential for maximizing the value of AI assistance while ensuring that the responses are relevant, accurate, and useful for specific legal scenarios.

Structure clear legal queries

Effective legal prompts should include several key elements: specific legal context, relevant factual details, the jurisdiction involved, and a clear indication of what type of assistance you're seeking. The more specific and structured your prompt, the more useful the AI's response will be.

Use role and context assignments for better results

Instructing ChatGPT to assume specific legal roles can significantly improve the relevance and depth of responses. Role-based prompts help the AI understand the perspective from which to approach legal issues and the type of analysis that would be most valuable.

Framework for creating effective legal prompts

  1. Assign a role: Tell ChatGPT to act as a specific type of legal professional
  2. Set the context: Provide relevant background information and jurisdiction
  3. Make a specific request: Clearly state what you want the AI to help you with
  4. Define the scope: Indicate any limitations or specific focus areas
  5. Define the output format: Specify how you want the information presented

Sample template ChatGPT prompt for legal analysis

"Act as a [specific type of attorney] in [jurisdiction]. I'm dealing with a situation involving [brief factual summary]. Please analyze [specific legal issue] under [relevant area of law], focusing on [particular aspects]. Include discussion of [relevant legal standards/tests] and any potential [complications/defenses/remedies]. Present your analysis in [preferred format]."

Common ChatGPT prompt mistakes to avoid

Navigating Confidentiality and Ethical Considerations

The use of AI tools like ChatGPT in legal practice raises significant ethical and confidentiality concerns that lawyers must carefully address. Ethics rules haven’t changed their core obligations of competence, confidentiality, communication, and fees, but the American Bar Association’s Formal Opinion 512 explains how they apply to generative AI. Build your program around those pillars and check state guidance on tech competence.

Protecting client confidentiality when using AI

Never input actual client information, case details, or confidential communications into AI systems unless you have explicit client consent and understand the AI provider's data handling policies.

How to avoid sharing confidential information with ChatGPT

ABA guidance on AI use: The American Bar Association permits AI use provided lawyers maintain competence, protect confidentiality, and exercise proper supervision over AI-generated work.

Confidentiality compliance checklist

Ensuring compliance with professional responsibility rules

Lawyers must understand the tools they use and maintain appropriate supervision over AI-generated work. You remain fully responsible for all work product, even when AI assists in its creation.

Relevant Model Rules of Professional Conduct:

Advanced Strategies for AI Quality Control

Professional team of lawyers holding a planning meeting in a conference room

As law firms become more sophisticated in their AI implementation, whether using ChatGPT or other tools, developing advanced quality control strategies becomes essential for maximizing benefits while minimizing risks. These strategies go beyond basic verification to create systems that ensure consistent quality and reliability in AI-assisted work.

Advanced quality control involves implementing multiple layers of verification, establishing metrics for measuring AI effectiveness, and creating feedback loops that improve AI implementation over time.

Implementing systematic verification processes

Developing systematic review protocols ensures that AI-generated law firm content meets professional standards and complies with ethical requirements. These protocols should address different types of AI assistance and establish appropriate levels of review based on the complexity and importance of the work product.

Quality control checklist

Documenting AI assistance for transparency: Maintain records of when and how AI tools were used in client representation, both for internal quality control purposes and to ensure transparency with clients when appropriate or required.

Measuring AI assistance effectiveness

Tracking the effectiveness of AI implementation helps firms optimize their use of these tools and demonstrate their value. Effective measurement involves both quantitative metrics (time savings, cost reductions) and qualitative assessments (improved work quality, client satisfaction).

Key performance indicators (KPIs) relevant to legal practice

Efficiency metrics

Quality metrics

Simple tracking system template

Regular assessment of these metrics helps firms refine their AI implementation strategies and identify areas where additional training or process improvements might be beneficial.

Integrating ChatGPT with Legal Practice Management

Rather than treating ChatGPT as a standalone tool, the most effective implementation approach is to integrate it with existing legal practice management systems that maintain proper oversight, documentation, and quality control.

This integration ensures that AI-generated work product flows seamlessly through established review and approval processes while maintaining the security and organization that legal practices require.

Aligning with document management systems

AI-generated content must be properly incorporated into existing document management systems to ensure version control, proper review protocols, and compliance with security requirements.

Workflow considerations

  1. Generate first drafts in an approved ChatGPT workspace.
  2. Save to your DMS/matter with standardized naming.
  3. Route through review steps (associate → senior associate → partner).
  4. Track versions and approval timestamps.

Comprehensive platforms like Centerbase provide the infrastructure necessary to support these integrated workflows, offering document management capabilities that can accommodate AI-assisted work product while maintaining proper oversight and security protocols.

Moving Forward with ChatGPT in Your Legal Practice

Used strategically, ChatGPT helps lawyers think faster, not cut corners. It accelerates drafting and synthesis, supports more responsive client service, and frees time for high-value advocacy. It’s important to pair using ChatGPT in law firms with robust review protocols involving human lawyers, ethical safeguards, and a practice-management platform that makes AI-assisted work product findable and auditable.

Ready to integrate AI into a comprehensive practice management solution? Request a demo of Centerbase to see how our platform supports modern legal workflows and helps firms maximize the value of emerging technologies while maintaining proper oversight and compliance.

Artificial intelligence is reshaping the legal industry, allowing firms to automate repetitive tasks, enhance legal research, improve decision-making, and achieve many other productivity and efficiency results. As AI continues to evolve, firms that understand the role AI can play in legal practice and leverage AI-powered tools will gain a competitive edge by increasing efficiency and reducing errors.

This comprehensive article explores how AI benefits law firms, examines the challenges and benefits to consider of using AI in law, key tools and AI trends to watch for the legal industry, and provides practical insights for successful implementation.

Main Takeaways

Key Benefits of AI in Law

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Time and Cost Savings

AI's most immediate impact on legal practice comes through time savings on routine tasks. According to the professionals surveyed in Thomson Reuters' 2024 Future of Professionals Report, automating routine law firm tasks such as document review, legal research, and contract analysis have substantial efficiency gains.

Respondents estimate the time savings to be four hours per week or 200 hours per year (assuming 50 working weeks a year). At an average billing rate of $500 per hour, you can do the math: law firms stand to gain $100,000 in extra billable time annually.

This speed advantage allows firms to complete high-volume workflows more efficiently, reducing overhead costs while maintaining quality. For your clients, efficiency improvements translate into faster turnaround times and more cost-effective legal services.

Improved Accuracy and Risk Mitigation

AI systems excel at identifying patterns and inconsistencies that human reviewers might miss, particularly in document-heavy tasks. This enhanced accuracy proves especially valuable in contract analysis, where AI can flag potential risks, identify missing clauses, and ensure compliance with regulatory requirements.

The result for clients is more reliable outcomes and stronger risk management throughout the legal process, building trust and reducing liability exposure for both firms and their clients.

Greater Focus on High-Value Work

By automating routine tasks, AI enables attorneys and support staff to redirect their attention toward strategic thinking, client relationships, and complex advocacy work. AI can allow professionals to spend time on more innovative and intellectually satisfying practices—the type of work that originally attracted them to the legal profession.

This shift improves job satisfaction as legal professionals can focus on work that requires human judgment, creativity, and strategic thinking. For clients, this means receiving more personalized and strategic legal guidance rather than paying premium rates for procedural support that AI systems can efficiently handle.

Enhanced Client Experience

AI-powered tools contribute to smoother client interactions through faster communication, clearer billing processes, and more accurate documentation. Automated client intake systems can gather information efficiently, while AI-enhanced billing software reduces errors and provides transparent cost breakdowns.

AI chatbots and virtual receptionists enhance client service without adding to staff workload. They can handle client intake, answer common questions, and filter calls using AI-enabled voice receptionists. This responsiveness throughout the case lifecycle builds trust, improves client retention, and creates stronger long-term relationships.

Enhanced Legal Research

Traditional legal research methods, while thorough, can be time-intensive and may miss relevant precedents across vast legal databases. AI-powered legal research tools like Lexis+ AI, Westlaw Precision, and Harvey help firms quickly find case law, statutes, and precedents with greater accuracy and speed than manual methods.

Generative AI capabilities can summarize complex legal concepts, draft research briefs, and identify connections between cases that might not be immediately apparent to human researchers. This enhanced research capability ensures more comprehensive case preparation and stronger legal arguments.

Better Due Diligence

In transactional work, AI significantly improves due diligence processes by automating background checks, extracting critical data from large document sets, and validating compliance requirements. For mergers and acquisitions, AI can analyze hundreds of contracts simultaneously, identifying key terms, potential liabilities, and areas requiring attention.

AI tools can scan vast amounts of digital data, detecting relevant evidence faster than human reviewers. AI in law will further enhance e-discovery capabilities, ensuring greater accuracy and efficiency in compliance management at law firms. This automation reduces both the time and cost associated with complex transactions while improving accuracy in risk assessment.

Challenges and Risks of AI in Law

People sitting at a desk, reviewing a document.

Data Quality and Availability

AI systems are only as good as the data they're trained on, and legal databases often contain inconsistencies, outdated information, or jurisdictional variations that can affect AI performance. For providers of AI tools, this will mean they are constrained to things they own and things they have permission to load, potentially limiting comprehensive coverage.

Poor data quality can lead to incomplete analysis or incorrect conclusions, making it essential for firms to understand the limitations of their AI tools' training data and supplement automated research with traditional verification methods.

Risk of Hallucinations in Generative AI

Perhaps the most significant concern facing legal professionals using AI is the phenomenon of "hallucinations,” which is when AI confidently generates false information. AI sometimes produces hallucinations in the industry because the models generate responses based on statistical patterns learned from large datasets rather than by verifying facts in those datasets.

Retrieval-augmented generation (RAG) has been presented as a method to avoid hallucinations. RAG helps generative large language models (LLMs) produce more accurate results by accessing external sources of information and combining it with the internal material the LLM has been trained on. But even RAG systems are not hallucination-free.

Recent studies1 show concerning rates of hallucinations, with one legal AI system producing incorrect information more than 17% of the time, and another producing incorrect information more than 33% of the time.

The consequences can be severe. Courts around the country have questioned or disciplined lawyers for citing AI-generated fictitious cases, highlighting the critical importance of human verification.

Bias and Fairness

AI systems can perpetuate or amplify biases present in their training data, potentially affecting legal outcomes. Since these models mimic patterns in their training data without discerning truth, they can reproduce any falsehoods or biases present in that data.

In legal contexts, this bias can manifest in inconsistent recommendations across different demographic groups or geographical regions, making it essential for firms to monitor AI outputs for fairness and consistency.

Integration and Change Management

Technical integration remains a significant hurdle. According to Attorney Journals, 37% of law firm employees and 42% of corporate law employees experience challenges integrating generative AI with existing legal systems and processes.

Successful AI implementation requires not only technical integration but also staff training, workflow redesign, and cultural adaptation. Many firms struggle with the change management aspects of AI adoption, particularly in ensuring all team members understand both the capabilities and limitations of their new tools.

Regulatory and Ethical Uncertainty

Many legal professionals have reported being concerned that using generative AI could put them or their firms in violation of ethical and professional codes of conduct. Currently, there are no clear industry-wide and fully-agreed-upon guidelines as to how to proceed.

Attorney ethics rules require lawyers to vet and stand by their court filings or risk being disciplined. The American Bar Association has informed its members that those obligations extend to "even an unintentional misstatement" produced through AI. This evolving regulatory landscape requires firms to stay informed about changing ethical standards while developing internal compliance policies.

Popular AI Tools in the Legal Industry

A person sitting at their desk using a tablet.

Document Management Systems with AI Features

Modern document management systems increasingly incorporate AI capabilities that enhance searchability, automate classification, and streamline routine document processes. These systems can automatically tag documents based on content, extract key information, and route files through approval workflows.

Advanced systems like Centerbase leverage AI for document automation, optical character recognition (OCR), and electronic signature workflows, reducing the manual effort required for document processing while maintaining accuracy and compliance standards.

AI-Powered Legal Research Platforms

Legal research has been revolutionized by AI-powered platforms that use generative AI to surface relevant case law more efficiently than traditional database searches. Unlike generic AI tools, these solutions minimize the risk of AI hallucinations and ensure reliable legal research.

Contract Analysis and Review Tools

Contract analysis platforms have become essential for corporate and transactional law practices. These tools can highlight potential risks, suggest clause revisions, and provide comprehensive contract summaries in minutes rather than hours. This growing reliance on AI-powered contract analysis reflects the technology's maturation and proven value in transactional work.

E-Discovery Platforms

Manually reviewing large digital files for discovery is labor-intensive. AI-powered tools automate document categorization and review, improving search accuracy and efficiency. Modern e-discovery platforms use predictive coding and smart filtering to manage massive data volumes while ensuring relevant information isn't overlooked.

These systems can process terabytes of data, identify privileged communications, and flag documents for attorney review based on relevance scoring, dramatically reducing the time and cost associated with litigation discovery.

Workflow and Task Automation Tools

Automation tools can handle intake processes, pre-bill approvals, deadline reminders, and matter status updates. AI scheduling tools can optimize meeting times and avoid conflicts, while billing software with AI integration can reduce errors and streamline invoicing.

Centerbase offers automated workflows tailored by practice area, allowing firms to customize automation based on their specific procedural requirements and client needs. These workflows can automatically trigger actions based on case events, deadlines, or client communications.

Emerging Trends to Watch in AI and Law

Rise of Generative AI

Generative AI has the potential to change how legal professionals do their jobs in the years to come. Law firms using generative AI systems are already posting greater efficiencies in legal research and document management.

Generative AI is being applied to draft legal documents, summarize case materials, and create client communications. However, lawyers must validate everything AI produces. And most clients will want to talk to a person, not a chatbot, regarding legal questions, highlighting the continued importance of human oversight and interaction.

Early-stage applications show promise in routine drafting and preliminary research, but limitations remain in complex legal reasoning and nuanced client advisory work.

AI Integration with Core Practice Management Platforms

Legal professionals increasingly expect AI tools to work invisibly within their existing platforms. The trend is moving toward unified systems that combine AI capabilities with traditional practice management functions like billing, client intake, and case management.

By bringing AI to content, rather than requiring content to be migrated to standalone AI platforms, legal teams can maximize the value of these technologies while minimizing disruption. This integration provides competitive advantages for firms that can offer seamless, AI-enhanced operations without requiring staff to learn entirely new systems.

Focus on Explainability and Transparency

As AI adoption increases, both lawyers and clients demand greater transparency in how AI systems reach their conclusions. By allowing end users to delve into the same source documents the LLM used in crafting its answers, RAG fosters a deeper understanding and trust in the AI-generated responses.

The importance of audit trails and transparent decision-making processes continues to grow, particularly as regulatory bodies develop clearer guidelines for AI use in legal practice. Systems that can clearly document their reasoning processes will likely see greater adoption as they support both ethical practice requirements and client trust.

Best Practices for Law Firms to Stay Compliant with AI

Establish Clear AI Governance Policies

Successful AI implementation begins with clear governance structures. Firms should define who is responsible for selecting, deploying, and auditing AI tools across the organization. This includes establishing decision-making authority for AI investments and creating internal guidelines for acceptable AI use across different departments.

Governance policies should address data security, client confidentiality, quality control procedures, and regular performance assessments of AI tools. Clear accountability structures help ensure consistent application of AI policies and provide mechanisms for addressing issues when they arise.

Maintain Human Oversight on All AI-Powered Tasks

Human oversight must be maintained for all AI-generated content, particularly for case law research, contract analysis, and legal briefs.

Experienced attorneys should review AI-generated outputs for accuracy, completeness, and appropriateness. This oversight extends beyond simple fact-checking to include evaluating the legal reasoning, ensuring jurisdictional appropriateness, and confirming that AI recommendations align with client objectives and ethical requirements.

Train and Educate Your Team on AI

The more educated your firm is about AI and its implications within the legal market, the more likely you are to maximize AI's possibilities while minimizing its risks. Comprehensive training should help staff understand the foundations of using AI within law firms, including use cases, benefits, and ethical considerations.

Attend CLE and Other Educational Opportunities: Many vendors and associations now provide education and guidance on AI for law firms. Begin attending events through your Bar Associations, practice area groups, technology vendors, and the Association of Legal Administrators. Consider inviting outside subject matter experts to train your team on AI usage.

Try AI Products: "Rent" AI products using SaaS pricing models to begin testing how AI could provide a competitive advantage for your firm and staff. Many products include free trials or low-cost, short-term subscription options to get started. For each product you test, have trial users fill out a rubric to evaluate the product's effectiveness, documenting things like use cases, accuracy and performance, robustness and limitations, regulatory and ethical considerations, security, user experience, and cost.

Read Up: Even though AI usage in the legal field is just beginning, many resources exist to help you understand the full landscape of AI. The American Bar Association often covers topics related to AI, machine learning, and automation in law practice. A quick online search will produce numerous resources, including guides about AI adoption in the legal market, checklists to implement AI at your firm, and sample AI policies for law firms to help document your firm's AI approach.

Vet AI Tools for Data Privacy and Security Compliance

Choosing AI platforms that meet your jurisdiction's legal ethics rules and cybersecurity standards is essential for client protection and regulatory compliance. There is a huge difference between consumer AI and legal AI tools, which use only reliable and verifiable sources of data.

Ensure that client data remains confidential and is not used for external model training purposes. Evaluate vendors' security protocols, data handling procedures, and compliance certifications before implementation. Consider requiring contractual guarantees about data protection and AI model training restrictions.

Prioritize Tools with Audit Trails and Transparency

Select AI systems that document how conclusions were reached and provide clear attribution for their recommendations. This transparency is not only vital for legal practitioners who need to trace the origins of the information provided but also instrumental in building trust in AI systems.

Transparent tools support both ethical practice requirements and client trust by allowing lawyers to understand and explain the basis for AI-generated recommendations. This capability becomes increasingly important as courts and clients demand greater accountability for AI-assisted legal work.

Align AI Investments with Long-Term Strategic Goals

Avoid implementing AI simply to follow trends. Instead, tie AI tool selection to specific operational pain points such as billing bottlenecks, document review delays, or client communication inefficiencies.

The advantages of integrating AI into your legal practice management software are clear:

How to Evaluate Your Firm’s Technology

To integrate AI technology effectively, your existing technology needs to be ready for it, too. That means you will need a solid technology infrastructure in place to ensure the successful integration and operation of AI products when you’re ready to implement them. Consider these recommendations to get started.

Move Your Core Systems of Record to Cloud-Based Technology

Ensure your firm uses modernized cloud-based technology that supports continued enhancements and updates. By having your client data, research data, and documents in modern platforms, you increase your firm’s ability to quickly access this information within AI platforms.

Research Your Vendors

Speak with your current vendors to understand their AI roadmap and AI usage within their platform. Ensure you understand the underlying technology the vendor plans to use and that it aligns with your firm’s policy on AI usage.  

Consider API Access

Understand the API access available in your current software. apis allow you to integrate your products and data with software and could speed up the transition to using AI within your law firm.

Forming an AI Committee Within Your Firm

A group of people sitting around a table in a conference room.

Evaluating AI’s fit within your firm could be a significant undertaking, so be prepared to dedicate some resources to it. You will recoup costs incurred during this research and evaluation phase by avoiding surprises and setbacks with a well-prepared AI integration plan. 

While you might need one point of contact to organize the effort, forming an AI task force within your firm allows multiple stakeholders to weigh in, ensures diverse perspectives and user groups are considered, and helps your firm prioritize AI and other emerging technologies.  

This task force can begin identifying specific AI use cases within the firm, such as document review, contract analysis, legal research, or client communication. Prioritizing the use cases where AI technology can provide the most significant value will allow the committee to begin architecting your future technology stack to support them.  

The committee should also be responsible for drafting policies and guidance on how your staff can use AI. This helps ensure your firm factors in compliance and ethical considerations when making decisions about using AI. 

Streamline Your Firm's Operations with AI-Powered Workflows from Centerbase

AI has been transforming how legal services deliver value to their clients, and it continues to do so. This, in turn, will require legal professionals to make changes to their traditional business models. As the legal industry continues its digital transformation, AI's impact on modern law firms will only grow more significant.

The key to successful AI adoption lies in selecting the right tools that match your firm's specific needs and operational requirements. Rather than implementing AI for its own sake, focus on solutions that address concrete challenges and enhance your ability to serve clients effectively.

Centerbase understands these challenges and opportunities. Our AI-powered workflows are designed specifically for law firms, offering automation solutions that integrate seamlessly with your existing processes while maintaining the security and compliance standards that legal practice demands.

From document automation and client intake processes to billing optimization and case management workflows, Centerbase helps law firms harness the power of AI while preserving the human judgment and expertise that clients value most.

Ready to discover how AI can transform your firm's operations? Book a demo to see how Centerbase's AI-powered workflows can streamline your practice, or learn more about our billing features to understand how automation can improve your firm's financial efficiency.

1. “Vals Legal AI Report” and “Hallucination Free? Assessing the Reliability of Leading AI Legal Research Tools”

By Paige Roncke, Chief Revenue Officer, Centerbase

The legal industry is at a critical inflection point where law firms can no longer identify only as legal services providers. Law firms must also be data and technology companies in order to effectively compete in the market for long-term success.  

I discussed this new landscape with Debbie Foster, CEO of Affinity Consulting, during a webinar on law firm profitability. A substantial portion of that conversation was rooted in the theory that profitability is more than a simple math formula of revenue minus cost; rather, it’s about understanding your firm's opportunity to maximize revenue streams while also minimizing costs without compromising quality of legal services.  

It’s a misnomer to assume the application of technology only minimizes cost. Yes, technology has a critical role in automating administrative tasks, optimizing billing processes and creating comprehensive and speedy communications both internally and externally. However, technology is best utilized when the full power of software is applied to maximizing potential revenue streams.  

This can be software-driven enhancements like improving time capture to create more billable hours, building reports that provide deeper insights into profitability at various levels — from individual attorneys to entire practice areas — through data clarity and availability, and utilizing that data to retain and attract stronger talent that can bill at higher rates. 

In other words, as Debbie stated, “Technology should be used as a revenue multiplier.” And multiplied revenue leads to greater profitability. 

While many firms have already made investments in technology, they may not be fully utilizing these tools. Let’s examine how technology can enhance law firm profitability by improving time tracking, managing billing, and providing actionable insights into the firm’s financial health. We'll also discuss common technology pitfalls and how to avoid them, so your firm can make the most of your technology investments. 

Where Technology Drives Profitability in Law Firms 

With the right tools, firms can unlock efficiencies that translate directly into higher profits. The key is knowing how to leverage technology effectively to improve law firm profitability, such as: 

Technology Shouldn’t Be the First Budget Reduction 

Despite these opportunities to use technology as a revenue multiplier to drive significant profitability gains, many firms struggle to fully leverage the tools they have — and that often leads to cutting technology costs. But cutting costs isn’t a sustainable path to profitability. 

Consider these common pitfalls to avoid so you can maximize your technology to advance your revenue streams. 

1. Underutilizing Software Features 

Many law firms invest in technology but only use a small fraction of the available features. For example, your firm might not be taking full advantage of your practice management software’s time tracking, billing, and reporting features that could improve efficiency. Leveraging a tool’s full capabilities can not only improve efficiency but help reduce stress at work, too. Encourage continuous learning, where attorneys and staff explore new features and share tips for improving efficiency. 

2. Lack of Ongoing Training and Support 

Too often, technology implementation is treated as a one-time event rather than an ongoing process. A lot of effort goes into the rollout and not enough into continuous training to learn about the tool after it’s been implemented.  

As Debbie says:

“We really need to marry up our technology spend with building a culture of training.” 

Pay attention to new updates and features, and make sure your staff learns how to use them by providing ongoing training and support. Consider hosting monthly lunch-and-learn sessions to discuss new ways to use your tools more effectively. 

3. Not Using Technology to Attract and Retain Talent 

One of the best things technology can do for your firm is standardize processes. Sure, every lawyer prefers to do certain things differently, but technology can help you agree on standardizing core elements of practicing law and running a firm. The result goes beyond efficiency. 

New associates coming out of law school want to gain experience with modern technology — and they expect it. Maximizing your technology presents your firm as forward-thinking and committed to providing resources to work effectively, and that can help you stand out as an employer of choice.  

Newer technology presents employees with an enhanced user experience with fewer clicks, simpler and more modern interfaces, and intuitive ease of use. This streamlined experience over older systems leads to higher job satisfaction, boosting your talent retention and attraction. 

The Future of Law Firm Profitability is Powered by Technology 

Technology is no longer optional — it’s essential for creating a long-term competitive edge. Whether it’s automating time tracking, streamlining billing, or analyzing profitability across practice areas, the right tools can make all the difference in how efficiently your firm operates. 

By embracing technology and ensuring it is fully integrated into your firm’s processes, you can unlock new levels of profitability, improve client satisfaction, and future-proof your business for years to come. The key is not just investing in technology but leveraging it to its full potential—and continuously improving how you use it through ongoing training and fostering a culture the embraces technology. 

As the legal landscape becomes more complex and competitive, adopting modern law practice management software is one of the best ways to help your law firm keep up. Legal technology can greatly increase your competitive advantage, make your operations more efficient, and continuously enhance client service. 

However, this journey isn’t as simple as purchasing the first legal software you come across online. It involves a step-by-step process of assessing your firm’s needs, conducting due diligence to select the right vendor for your firm, and implementing the software. 

Based on the latest insights from Centerbase's 2024 Guide to Buying Law Practice Management Software, this article will help you navigate and simplify the path to selecting the best legal practice management software for your firm. 

Why Law Firms Change Technology 

Law firms turn to technology for a variety of proactive and reactive reasons. Proactively, firms seek opportunities to increase efficiency, improve client service, and maximize cost savings. Reactively, they are compelled to switch software when faced with challenges such as missing functionality, the need for remote work capabilities, system consolidation, data security issues, or the need to retire an old server. 

Proactive and reactive reasons for choosing law firm software

Assessing Law Firm Technology Needs 

Before embarking on the legal technology journey, take an inventory of your firm’s current technology infrastructure. Then, ask your team to identify gaps your current tech stack doesn’t fill to understand their vision to optimize law practice operations. 

By building a cross-functional team to represent your law firm's software user base and setting expectations for what the new software should accomplish, law firms can outline a clear vision for their technological needs. Be sure to consider budgets during this assessment, too.  

Choosing a Legal Software Vendor 

Once the technology needs have been assessed, the next step involves selecting legal practice management software that's right for your firm. This process requires a comprehensive review of potential vendors based on selection criteria that go beyond cost.  

Features and capabilities to consider in law firm software 

Create a short list of best law software vendors 

Now that you've researched various software vendors' offerings, make a short list of finalists, send them a request for proposal, and set up demonstrations. 

Collect your findings on how well each legal practice management software meets your team's expectations, conduct reference checks, and review terms of service and service level agreements. 

You're now ready to score the proposals, run pilot tests of the best options, run the numbers, and make a choice. 

Implementing New Legal Software 

With a vendor selected, the next step is implementation. This process may include stages like data migration, setup, configuration, and testing.

Training is also indispensable at this stage as it is vital for maximizing the return on the investment in law firm technology while also driving successful software adoption.

What to look for in effective technology training

Just as you're evaluating the software's overall ability to meet your firm's needs, you should put equal emphasis on understanding the vendor's process for creating a smooth legal software implementation. 

Moving Forward with New Legal Practice Software 

Keep in mind, legal technology isn't a one-size-fits-all solution. It needs to be the right fit for your law firm to truly optimize operations and stay competitive in the fast-evolving legal industry. 

With the meticulous planning, careful selection, and continuous learning we've outlined, you'll be on your way to using technology as a powerful tool to enhance efficiency, improve client service, and contribute to your firm's overall success. 

Get our complete guide to buying legal practice management software for detailed tips and considerations to choose the right technology for your firm.  

In today's legal landscape, staying competitive and efficient is crucial. If your firm isn’t using an all-in-one legal practice management software to streamline firm and client operations, you’re missing out on the highest level of efficiency and competitive advantages to set your firm apart. The cost of not having such software is too great to not act.

Multiple types of productivity software exist to improve law firms’ efficiency with certain tasks, such as client intake, case management, and timekeeping. But having multiple disparate systems requires opening each one, toggling among them when switching tasks, leading to less efficiency overall, not more.

Yet, many law firms hesitate to adopt legal practice management software that could solve their efficiency woes, underestimating what law firms stand to lose by choosing the status quo. Just like neglecting IT infrastructure, ignoring legal technology can lead to significant financial and operational downsides. 

But why do law firm hesitate to adopt legal software? According to Forbes, choosing not to upgrade software is rooted in common fears, including:

What’s the cost of not having legal practice management software?

Without legal practice management software, you’ll miss out on operational efficiency, best practices, and firm culture benefits that optimize your law practice. Let’s dive into some of the greatest potential costs associated with not implementing an all-in-one legal technology platform.

Efficient and accurate accounting

Building your general ledger accounting into your timekeeping, billing and accounting operations in one platform gives you the most efficient and accurate accounting operations.

Integrating data for each of these processes means you enter the data once, and it populates everywhere. This helps your firm avoid double-entry recordkeeping between multiple software systems, and it ensures consistent data across the entire system.

Without the right legal practice management software, you might even miss out on the ability to integrate general ledger firm and trust accounting in one place, which enables reconciliation across your client and firm accounts. With such a system, you can track every dollar in and out of your law firm.

Loss of Billable Hours 

Without streamlined processes, you and your attorneys are wasting time on administrative tasks. Legal practice management software automates billing, scheduling, and document management, freeing up time for billable work. This directly impacts revenue, as even a small increase in billable hours can lead to substantial financial gains over time. 

Data Security Risks 

Without robust software solutions, your firm could be at risk of data breaches. With the high degree of sensitive client information you handle, a data breach can be costly and damage your firm’s reputation. Legal practice management software often includes secure data storage and encryption, ensuring client confidentiality and compliance with legal standards. 

Client Dissatisfaction 

Efficient case management is key to client satisfaction. Manual processes can lead to delays, missed deadlines, and errors, frustrating clients. Legal practice management software enhances communication, tracks case progress, and ensures deadlines are met, leading to better client relationships and retention. 

Competitive Disadvantage 

Law firms that use technology risk falling behind competitors who are more tech-savvy. Legal practice management software enables firms to leverage analytics and reporting, improve marketing efforts, and offer better services, helping them stay competitive in a crowded market. 

An investment or a cost?

Investing in legal practice management software is not just about improving efficiency; it's about protecting your firm's financial health and reputation. The cost of doing nothing can far exceed the investment in the right software solution. If you're considering enhancing your practice with technology, now is the time to act. Don't let your firm fall behind — explore the benefits of legal practice management software today. 

As you search for new law practice management software, you shouldn’t settle for a painful implementation process — which is the largest obstacle preventing law firms from embracing new and better software. 

With the right components in place, a legal software platform can provide an accurate and efficient implementation with minimal business disruption — so you can start making strategic and profitable business decisions immediately.    

Here’s what you should look for in a well-mapped legal software implementation process when searching for the right vendor. 

Professional People to Organize Legal Software Implementation

As you’re narrowing down your law practice management software options, ask each vendor if they have a dedicated team that will focus on delivering an exceptional implementation.  

A comprehensive implementation team should include project managers and data specialists that organize your implementation and deliver accurate data imports, and support, training, and customer success teams that champion your firm’s success throughout your firm’s experience — including post-implementation.  

Proprietary Implementation Processes  Minimize Disruption

What is the actual implementation process for each vendor? You’ll want to understand how thoughtfully they’ve mapped each phase of implementation, and what tools will be used to migrate your firm’s data to the new software.  

Any software implementation must deliver correct data in the way you intend to use it and do so with minimal business disruption. Ask the vendors specific questions about each phase of the implementation process to understand if they can deliver on this expectation. 

Initial software implementation phases  

The early stages of an implementation process should:  

Data migration and testing phase 

Accurate data migration is critical to successful implementation of law practice management software that your team wants to use. Look for the following in vendors’ data migration phases: 

Configuration, testing and training phase 

Having accurate, ready-to-use data in the system allows your team to start learning how to use the new software. Ask vendors how they handle: 

Final software transition and beyond 

When the official switch to the new software begins, you’ll want it to be as seamless as possible. Vendors should have plans to minimize business disruption by walking your team through: 

Of course, you also need to feel confident a vendor will continue to help your team reap the benefits of the new software as your firm grows and changes. 

Why organized implementations for legal practice management software matter

Your new legal technology investment should help your firm become more efficient and profitable. If it offers the features to help you accomplish your firm’s goals, ensuring it also has an efficient and accurate implementation process will allow you to extract that value from day one of using the software.  

Be selective, and hopefully you’ll experience a software implementation that minimizes business disruption like Susie Saldivar, Office Manager at Gaido & Fintzen. 

“The onboarding process [with our legal software vendor] could have been terrible and glitchy, but, instead, it was super dreamy," she says. "I couldn’t have asked for a better onboarding experience. Everything went great." 

Get all the details for what makes an accurate and timely implementation here. 

A recent study from Gartner found that almost half of workers struggle to find the information they need to effectively perform their job. Every minute that your timekeepers spend chasing down documents is a minute they can’t bill or spend delivering superior service to a client. This can hamper your firm’s productivity, force timekeepers to engage in rework, and — even worse — disappoint and frustrate clients.

A document management solution can help you stay organized, but with so many solutions on the market, how can you choose the right one for your firm? Here are the optimal features to look for in a document management solution that will take your law firm’s productivity to the next level.

1. Advanced document search and retrieval

Basic legal document management systems help law firms corral their information. They offer search functionality but often stop short of offering full text search. Unless you know generally where your document is or remember its title, it can be hard to find the file you need.

But with an advanced document management system, you can say goodbye to frantic searches for deposition transcripts or other scanned or digital documents buried deep within your digital haystack. Advanced search capabilities, including optical character recognition (OCR) technology, integrated into top-tier platforms enable legal professionals to swiftly locate relevant documents using a variety of search parameters, from keywords to metadata tags, even in PDF documents.

Leading document management systems offer metadata management tools that allow users to customize document profiles with pertinent details like case numbers, client names, and document types, facilitating seamless organization and retrieval. The best platforms ensure that your documents appear in global searches of your law firm’s network and conflict checks.

2. Document assembly and template management

Copy and paste are a thing of the past with new document assembly technology baked into advanced document management platforms. Instead of having to copy documents to create new files, attorneys can leverage template management features that shortcut the document creation process, ensuring more consistent and accurate documents as soon as new matters are opened.

Some advanced platforms also auto-fill document templates with matter and client data and include features that automatically configure page numbering.

3. Document collaboration and review

Legal work is inherently collaborative, but working in separate applications on discrete documents makes it hard to keep track of revisions and versions. Version control can become a nightmare unless you have a centralized repository, leading to errors and inconsistencies.

Advanced collaboration tools enable real-time co-authoring, version comparison, and annotation of documents. These tools foster smoother workflows and improve the accuracy and consistency of legal professionals’ work.

4. Automated time capture

Attorneys need to capture all of their time when drafting documents and emails, but precious minutes can fall through the cracks if attorneys wait until well after they have finished drafting to record their time.

Top document management platforms offer features such as universal timers and automatic time recording. These platforms help attorneys capture the time they spend in Microsoft Word and Outlook and allocate it to the appropriate matter when using Microsoft Word and Outlook. Typically, features such as these add tens of hours per timekeeper per month.

5. Integration with other legal software

The coordination of legal matters requires multiple software tools and systems, many of which may not readily work together. If you add a document management system to the mix, it may add another layer of complexity to legal work.

Advanced document management platforms that integrate seamlessly with case management systems, email and messaging software, and other systems streamline data sharing and workflow automation, boosting efficiency and productivity. They also give attorneys the ability to create, print, email, and sign files right from the platform’s workspace. Leading systems send attorneys notifications when documents are signed and updated, accelerating the document approval process. These systems also often integrate with email systems, so users can assign messages to the appropriate matter without having to switch applications.

Streamline your law firm’s document management process

Practicing law is challenging, but poor document management doesn’t have to make it even more difficult. From advanced search capabilities to timekeeping, top-of-the-line document management systems like Centerbase offer a comprehensive arsenal of tools that help law firms simplify document workflows, enhance collaboration, and deliver exceptional client service.

To sign up for a live demo of Centerbase’s new native document management solution, click here!

In most law firms, efficiency, productivity, and profitability are measured in ticks of the clock. Yet while time tracking is a law firm’s lifeblood, it’s also the bane of timekeepers’ existence. Many attorneys still track their time manually and wait till the last minute to figure out where all the hours went. By that point, memories have faded, and time is lost — not to mention how difficult it is to track time across multiple applications and devices.

Fortunately, it doesn’t have to be that hard. And while many legal practice management software platforms offer basic time-tracking features, leading solutions offer greater functionality that takes the pain out of tracking time. Let’s look at the five advanced timekeeping features that can help you capture more billable hours and elevate your law practice.

1. Automated timekeeping

For accurate billing, you have to capture all of your billable hours. But that’s easier said than done in a world where attorneys and other timekeepers face constant interruptions, switch rapidly between tasks and matters, and work from places other than an office. With the constant time pressure on attorneys, paralegals, and other timekeepers, there’s hardly enough time in the day to get the work done, much less write down every task they complete.

That means by the end of the week (and sometimes month), timekeepers have to resort to piecing together their hours, a painstaking process that leads to lost time in two ways. First, attorneys often can’t remember all of their time billed in a week (much less month), and attorneys then have to waste precious time they could allot to billable matters reconstructing their timesheets. Research shows that law firms lose up to 30% of their fees when they don’t capture time concurrently with their work.

Advanced platforms include automated features that help timekeepers track every last billable second, turning timers on and off automatically when they detect billable activity. Leading platforms also add the ability to convert every automated time entry into a billing entry, so timekeepers won’t forget which time entry should be allocated to which matter. Data shows that an automated timekeeping feature helps law firms capture up to 200 more billable hours every month.

2. Global timer

Timekeeping should always be top of mind for attorneys. But sometimes starting and stopping times can get lost amid the busyness of the day. And when attorneys are searching for contact information for a client or reviewing versions of a contract, there’s no visual reminder to keep track of their time.

Top legal practice management platforms offer a global timer available no matter where you are in the app and regardless of whether you’re working on a desktop, laptop, or smart device. A global timer ensures that time entries are synchronized across all pages, so timekeepers don’t lose track of time when they move to different parts of the platform.

3. Tracking time in Microsoft applications

Switching from task to task saps valuable minutes, even when you’re just tracking your time. Research from the American Psychological Association shows that “shifting between tasks can cost as much as 40 percent of someone’s productive time.” So, when a timekeeper switches from drafting a pleading or client letter in Microsoft Word to your time-tracking system, they are losing precious seconds at a minimum — and more likely minutes.

Recording time shouldn’t disrupt your workflow; it should seamlessly integrate into your daily tasks. Leading legal practice management solutions integrate directly with Microsoft applications where timekeepers spend the bulk of their time, including Outlook and Word, enabling you to track time while drafting documents or sending client emails. Instead of requiring timekeepers to enter their time manually, integrations make automated time tracking a natural part of your workflow.

4. Automatically recording time during client interactions

Every client conversation matters — and so does the time you spend talking with your clients. Unfortunately, many attorneys have to rack their brains trying to remember how much time they spent on every conversation, and that can be hard to remember and record manually when you talk to multiple clients every day of the week.

Automated time capture features can automatically record the time spent on every call plus allocate each interaction to the right matter. Tying conversations to matters increases billing accuracy and helps avoid overbilling and underbilling, reducing the risk of client disputes, improving client trust, and raising timekeeper productivity. Leading platforms also offer secure storage for all client communications sent through their platform or device, so timekeepers can reflect back on every interaction when putting together their bills.

5. Timekeeping via mobile app

Today, few attorneys are confined to working at their desks. But manual timekeeping methods and online software have typically tethered attorneys to inflexible timesheets that they must manage in their office.

Time-tracking platforms with mobile apps allow timekeepers to track time anywhere, whether they’re at their desk or on the go. Mobile functionality caters to the dynamic, mobile nature of work today and ensures that attorneys have the flexibility to track time in the way that best suits their work style.

Capture more time — and more billables

For law firms, time is money. You need a solution that optimizes your law firm’s ability to capture time and increase your bottom line without disrupting your timekeepers’ workflow. With the right platform, you can transform timekeeping from a cumbersome task into a strategic advantage for your law firm.

If your law practice management platform isn’t making timekeeping as easy as possible with the features described above, it’s time for a change. Check out a free demo of Centerbase’s legal time-tracking software and start capturing more billable minutes.

 

Efficiency and precision are the hallmarks of legal billing software. Having the right tools can make the difference in streamlined processes and faster collections.

But while most legal billing software can help you accomplish these goals, top-of-the-line legal billing tools go above and beyond with a comprehensive suite of features that transform the way your legal professionals handle your law firm billing.

Here are the key features to look for in a game-changing legal software solution.

Accurate timekeeping

Precise timekeeping is crucial for legal professionals, and top-notch billing software recognizes the significance of accuracy. From tracking billable hours to capturing every minute detail, top software ensures that timekeeping is not just a task but an art form.

The right technology makes it easy to bill directly from the legal tasks being completed, whether that’s drafting a document, sending a text, having a phone call, or responding to an email — even when attorneys are out of the office. With these features, automated time tracking helps law firms eliminate time leakage and inaccuracies.

Automation

Good billing software automates routine tasks, but the best billing applications take it to a whole new level. Leading legal billing software integrates robust automation capabilities, reducing manual input and minimizing errors. From time tracking to invoice generation, automation ensures that your billing processes are not only efficient but also error-free.

For example, some platforms automatically create invoices for clients billed biweekly or monthly, pulling the data from a particular time range and eliminating the need for manual entry. These platforms can also send automated reminders to clients when payment is overdue, eliminating the need to chase payments. Finally, advanced tools track edits to pre-bills, then automatically forward them through the approval chain, so your bills are more accurate while wasting less time and paper.

Transparent client billing

Transparency builds trust. Instead of the traditional manual process of printing bills and stuffing them in envelopes, modern law firms have switched to online billing platforms. These platforms strengthen client relationships through clear and comprehensible billing practices.

For instance, top software provides a secure portal where clients can have 24/7 access to view, pay, and download their bills. It can also help reduce the need to answer client calls and emails about billing questions with detailed breakdowns of charges, making it easy for clients to understand the services rendered and to review their payment history.

Online payments

While good billing software may support various payment methods, exceptional platforms go the extra mile by offering seamless online payment options, including ACH, credit cards, recurring payments, and more. Leading legal software platforms allow clients to view and settle invoices with just a few clicks, providing unparalleled convenience.

Integration with tools such as LawPay lets clients receive bills in their email inboxes and allows you to check the status of the email: whether it’s been ignored, read, or paid. This feature not only accelerates the payment process but also enhances overall client satisfaction. Additionally, it can ensure that funds are allocated to the right trust account so you don’t have to manually record each payment.

eBilling

Compliance is a non-negotiable aspect of legal billing, but we all know how complex billing can be. Each client has specific preferences and requirements for how they’re billed, whether it’s an alternative fee arrangement, special discount, or unique invoice template. Then there are also the headaches of split billing, which can be incredibly difficult to track.

Leading legal billing software makes it easy for timekeepers to customize billing templates for each client and to split bills between different payors. Top software also incorporates LEDES (Legal Electronic Data Exchange Standard) and LSS (Legal XML Standard) codes, making it easy for firms, insurance companies, and other third parties to track legal work by task. Top platforms have built-in templates that make creating invoices in the LEDES or LSS format simple.

Centralized reporting

Good billing software may generate basic reports, but the best software takes reporting to new heights with centralized reporting capabilities and helps eliminate the silos that often exist between billing, accounting, and practice management. Advanced legal billing software provides a unified view of financial data, allowing law firms to analyze performance, track revenue, and make informed decisions all in one platform.

More advanced billing software offers easy-to-read reporting templates and dashboards for quick review plus unlimited ways to slice and dice your firm’s data with custom reporting that includes complex features like pivot tables. With these tools, partners can assess matter budgets, marketing teams can determine where to allocate advertising funds, and accounting professionals can calculate sales and other applicable taxes.

Upgrade your billing software today

Legal billing software is no longer a luxury; it’s a necessity. But you don’t need to settle for a billing platform with bare-bones features that creates more work — and more headaches — for your timekeepers, accountants, and billing team.

Make sure your legal billing software offers these features. If not, sign up today for a free demo of Centerbase and discover how exceptional legal billing software can revolutionize the way you handle billing and position your law firm for success.

 

Accounting is one of the most tedious and stressful parts of running a law firm. Thank goodness there’s technology to handle some of the most burdensome tasks. If you’ve already got a practice management application that handles your accounting, it is taking care of every task it possibly could? Is it maximizing your time? If you aren’t sure whether you have the optimal accounting software for your law firm, or if you’ve had your current solution for a while and aren’t sure whether it’s the latest and greatest option, check out the five essential legal accounting software features below and compare it with your law firm’s technology.

1. Integrated general ledger firm and trust accounting

Using multiple systems for accounting, billing, and invoicing hampers productivity and leaves your firm vulnerable to mistakes from users manually inputting data. Top-tier legal software seamlessly integrates general ledger firm and trust accounting with timekeeping, billing, and more.

Fully integrated accounting ensures that your accounting operations are not only highly efficient but also remarkably accurate. The software automatically recognizes your data, eliminating the need for manual data entry and reducing the risk of errors.

2. Centralized management of firm and trust/retainer finances

Leading law practice management platforms allow you to track your bank accounts, operating accounts, and related information in one central place. With fully compliant trust and firm accounting, you can monitor every dollar moving in and out of your firm without fear of penalties. A centralized approach provides a comprehensive view, streamlining financial management.

In these tools, you can also generate detailed accounting reports in seconds. Top legal software has built-in budget, trial balance, profit and loss, and general ledger reports. This feature allows you to filter and view your accounting data with a single click, providing valuable insights into your financial performance.

These platforms also allow you to gain insight into firm and client financials at a glance. Their dashboards will populate with customized views that allow you to see overdue bills, deposits, unbilled expenses, outstanding vendor bills, and more, saving you time and clicks. Better yet, advanced legal accounting software allows you to control access permissions, so you can restrict users and groups from editing, viewing, or sharing specific categories of data, including financial reports, billing rates, account balances, and more.

3. Streamlined management of multiple trusts and retainers

Clients often expect firms to manage multiple trusts and retainers for a single matter. Top legal software rises to this challenge by enabling easy management of multiple trusts and retainers under one or many matters. This feature enhances efficiency and meets the modern service expectations of clients.

With modern legal accounting software, you can track multiple IOLTA accounts efficiently by automatically assigning accounts for each client trust. This feature provides visibility into the flow of money in and out of your accounts, ensuring accurate and transparent financial management. These tools also perform automatic three-way trust reconciliations, comparing your bank balance to your trust ledger and to individual client ledger balances, improving compliance with state bar requirements and IOLTA best practices.

4. Automated transactions, from client payments to trust replenishment

Top legal software automates the recording of client payments. Once a payment is deposited, it’s instantly reflected in your accounts and financial statements, making your payment processes more accurate and efficient.

These systems also streamline client funds management by automatically accounting for trust/retainer funds. You can set a replenishment threshold that automatically notifies clients when their retainer funds are running low and then auto-apply replenishment funds to bills.

Some tools even have functionality that identifies matters with accounts receivable balances and available funds, allowing you to quickly create bill payments. The software facilitates smooth transactions, from identifying available funds to writing checks from your IOLTA to the operating account.

5. Increased accounting vigilance to prevent errors

Accounting accuracy is paramount for any law firm. Top legal software incorporates double-checking accounting security to limit human errors. These systems flag entries that don’t reconcile with the rest of your data, keeping your accounting data accurate, consistent, and audit-ready.

If you accept credit cards, and you definitely should to meet client expectations, your software should not only integrate with tools like Plaid that help you add, match, and reconcile credit card transactions, but it should also ensure the payment processing service fees are properly allocated to your firm’s operating account rather than the client’s trust account to avoid noncompliance with IOLTA accounting rules.

Invest in next-level legal accounting software

While basic law practice management systems can handle fundamental accounting tasks, investing in top-tier legal software unlocks advanced features that elevate efficiency, accuracy, and compliance. The comprehensive financial management capabilities that leading legal software offers streamline operations and empower law firms to navigate the complexities of modern legal accounting with confidence.

Ready to upgrade your legal accounting practices? Contact us for a free demo today.