For law firms looking to scale, 2025 presents both opportunities and challenges. Our latest Future of Law Firm Operations Report, based on a survey of 335 small- to mid-sized law firms, reveals key trends shaping the industry. From rising operational costs to the increasing adoption of technology, law firms must rethink their approach to efficiency and growth.
Here are the top trends law firm leaders need to know as they plan for the future.
Despite economic uncertainty, law firms are still focused on expansion, with 46% aiming to increase their client base by 20% or more in 2025. However, firms also report significant operational hurdles that could slow down this growth, including:
Firms that want to scale must first optimize and modernize their internal operations by addressing inefficiencies in workflow, staffing, and financial management.
With Centerbase’s law practice management software, Powers Taylor LLP realized taking on more clients didn’t require a significant increase in staffing to manage them. The boutique litigation law firm increased new clients by 152% but added just two staff members to support them.
One reason Powers Taylor accomplished this was by managing all caseloads much more efficiently and closing cases 40% faster with Centerbase.
Our data shows that different roles within law firms have distinct operational pain points:
To improve firm-wide efficiency, firms must address challenges at the role-specific level by equipping their teams with the right tools, processes, and training. For example, Texas-based Griffith Davison implemented software with case management features, which improved data and reporting and illuminated areas for process improvement.
“We can dive much deeper into metrics and see how many full-rate and reduced-rate cases [attorneys are] working on — and how that impacts their collections,” says Kimber Davison, Managing Shareholder and Vice President, Griffith Davison.
While 63% of firms are open to adopting new technology, many have yet to fully implement solutions that could streamline operations. The top software solutions firms are leveraging include:
Yet, concerns about cost, training, and workflow disruption prevent some firms from making the leap. Demonstrating a clear ROI, offering comprehensive training, and phasing-in technological solutions can mitigate these concerns and drive adoption. Law firms that embrace digital transformation will gain a competitive advantage by improving efficiency, reducing administrative burdens, and enhancing client service.
Hiring and retaining top legal talent is a major priority for firms in 2025, with 19% of firms citing it as a top objective. However, operational inefficiencies—like high caseloads, limited career growth opportunities, and lack of technology adoption—can drive employee dissatisfaction.
Firms that invest in staff development, training, and workload management will be better positioned to attract and retain top talent in a competitive market.
The firms that proactively address operational inefficiencies will be in the best position to grow. Our report outlines several best practices:
Law firms that embrace operational efficiency, financial management, and technology adoption will be best positioned for success in 2025.
Download the full report now to get detailed insights and actionable recommendations for optimizing your law firm’s operations.