Highlights From the 2025 Legal Trends for Mid-Sized Law Firms Report

Since 2016, authorized consultants have turned to Clio’s annual Authorized Tendencies Report for an intensive examination of developments within the authorized discipline. 

As essentially the most complete evaluation of the authorized trade, the Authorized Tendencies Report consolidates very important data on legislation agency efficiency whereas illuminating the influential elements driving modifications in authorized apply.

For attorneys in mid-sized corporations, we offer distinctive insights with our annual Authorized Tendencies for Mid-Sized Legislation Companies report. We’re thrilled to announce the latest launch of the 2025 Authorized Tendencies for Mid-Sized Legislation Companies report. This report examines key developments shaping mid-sized legislation corporations throughout a number of views, offering the info and insights wanted for mid-sized legislation corporations to navigate trade shifts and place themselves for long-term success. 

Beneath, we’ll discover key highlights from the 2025 Authorized Tendencies for Mid-Sized Legislation Companies report. Or skip forward to obtain the 2025 Authorized Tendencies for Mid-Sized Legislation Companies report and get much more insights on AI, different fee choices, consumer advertising, agency spending, and extra! 

The place does the info come from?

The Authorized Tendencies for Mid-Sized Legislation Companies report makes use of a variety of methodological approaches and knowledge sources to ship the perfect insights in regards to the state of authorized apply and techniques for future progress.

Clio knowledge

We’ve analyzed aggregated and anonymized knowledge from tens of 1000’s of authorized professionals within the U.S. This knowledge supplies essential insights about how expertise is presently being utilized by authorized professionals, in addition to its affect on agency efficiency.

Survey of authorized professionals

We surveyed 1,028 U.S. authorized professionals from June 5 to 23, 2024. The authorized professionals we surveyed included attorneys in addition to assist employees—akin to paralegals and directors—who’re engaged within the administration aspect of their apply. Moreover, we surveyed 1,437 Clio clients from April 15 to 25, 2024.

Survey of the overall inhabitants 

We surveyed 1,003 adults within the U.S. common inhabitants from June 28 to July 2, 2024. This survey was designed to gauge attitudes, opinions, preferences, and behaviors relating to the authorized career amongst people who’ve employed attorneys previously or who could change into potential authorized purchasers sooner or later. This pattern is consultant of the U.S. inhabitants by age, gender, area, revenue, and race/ethnicity based mostly on the newest U.S. census statistics.

Mid-sized corporations leverage extra and better billing charges than smaller corporations

For the primary time, the Authorized Tendencies for Mid-Sized Legislation Companies report is exploring hourly charges by agency dimension and the way they differ inside corporations to offer extra perception into the nuances of dimension in relation to trade averages.

Right here, we see that virtually all mid-sized legislation corporations leverage a number of billing charges and usually cost the next variety of completely different hourly charges for each attorneys and non-lawyers in comparison with smaller corporations. Moreover, mid-sized legislation corporations cost greater common hourly charges than smaller corporations for each their attorneys and non-lawyer professionals, and see larger variation within the charges charged between completely different timekeepers than smaller corporations. 

Information-driven insights on billing charges in mid-sized legislation corporations

99% of mid-sized legislation corporations have a number of billing charges set for his or her attorneys, in comparison with 85% of smaller corporations. 
The common mid-sized agency costs eight completely different hourly charges for his or her attorneys and 9 for non-lawyer professionals, whereas smaller corporations solely cost three for each.
The common distinction in mid-sized legislation agency hourly charges between their high and backside attorneys is $400, whereas the typical distinction in smaller corporations is round $250.

Most mid-sized legislation corporations are utilizing AI in some capability, whereas over half have adopted AI extensively or universally

Within the 2024 Authorized Tendencies for Mid-Sized Legislation Companies report, we discovered that 19% of mid-sized and smaller legislation corporations had been utilizing AI of their apply. 

During the last yr, that quantity has skyrocketed: a whopping 93% of surveyed authorized professionals in mid-sized legislation corporations are actually utilizing AI in some capability of their apply, whereas over half (51%) have adopted AI extensively or universally. What’s extra, over 4 in 5 authorized professionals in mid-sized and smaller corporations consider that the utilization of AI will improve within the subsequent 12 months. 

Mid-sized corporations are utilizing a variety of AI instruments, with AI-powered authorized analysis platforms, generic non-legal AI instruments, and doc drafting or automation instruments being the most well-liked choices. 

Why are so many mid-sized corporations turning to AI use? Authorized professionals in mid-sized legislation corporations consider that AI will save them money and time whereas growing their high quality of labor and productiveness. They’re additionally extra more likely to consider that utilizing AI will increase consumer engagement and permits them to tackle extra purchasers than smaller corporations. 

Should-know statistics on mid-sized legislation corporations’ AI use

A outstanding 93% of surveyed authorized professionals in mid-sized legislation corporations are actually utilizing AI in some capability of their apply, whereas over half (51%) have adopted AI extensively or universally. 
Mid-sized corporations are considerably extra more likely to have adopted AI than smaller corporations: 72% of smaller corporations are utilizing AI in some capability of their apply, whereas solely 10% have adopted AI extensively or universally. 
Amongst mid-sized corporations presently utilizing AI, AI-powered authorized analysis platforms (66%), generic non-legal AI instruments (65%), and doc drafting or automation instruments (60%) take pleasure in essentially the most widespread utilization. Predictive authorized analytics (52%) and eDiscovery options (53%) are additionally standard. 
Over 4 in 5 authorized professionals in mid-sized and smaller corporations consider that the utilization of AI will improve within the subsequent 12 months. 
The highest advantages of AI, in line with mid-sized corporations, are saving time and growing effectivity (43%), enhancing the standard of labor (38%), and managing caseloads extra productively (37%).

Mid-sized corporations are embracing flat charges as purchasers demand predictable pricing

Mid-sized corporations seem to grasp the advantages of providing flat charges. Flat charges are essentially the most generally reported billing technique amongst mid-sized legislation corporations, adopted by hourly charges, contingency charge agreements, and subscription fashions. 

In comparison with smaller corporations, mid-sized legislation corporations are a lot much less more likely to supply hourly charges however more likely to supply subscription fashions. This shift highlights a rising recognition amongst mid-sized corporations that predictable, clear, and client-friendly pricing is essential to remaining aggressive.

Because it seems, purchasers additionally wish to pay a flat charge. After we have a look at consumer preferences, flat charges are essentially the most most popular technique to pay for authorized providers. Additional, over half of potential purchasers would favor to pay their attorneys utilizing fashionable service supply fashions, akin to flat charges or subscriptions. 

Key findings relating to agency billing fashions

64% of mid-sized corporations report flat charge billing fashions, whereas 54% use hourly charges, 30% use contingency charges, and 27% use subscription fashions. 
Amongst mid-sized legislation corporations providing flat charges as a fee choice, 82% used flat charges for your complete matter, whereas 41% used flat charges for particular actions inside a matter. 

Clio options assist mid-sized corporations enhance their income, conversion charges, and time to rent

Mid-sized corporations are utilizing a variety of channels to advertise their providers, together with web sites, referrals, on-line evaluations, social media, and web search or search engine marketing optimization consultants. In contrast with smaller corporations, nevertheless, mid-sized corporations are much less more likely to depend on referrals to advertise or market their providers, since they’ve extra assets, permitting them to deal with a wider vary of promoting channels. Nonetheless, each mid-sized and smaller corporations report that referrals are their highest sources of leads. 

There’s a sturdy correlation between use of Clio options and elevated consumer consumption efficiency. Particularly, mid-sized corporations utilizing e-signatures, on-line search adverts, on-line schedulers, and on-line consumption varieties noticed greater revenues, higher conversion charges, and quicker time to rent.

What to learn about improved consumer consumption efficiency

Leads: 16% of mid-sized corporations report that referrals are their highest supply of leads, whereas 51% of smaller corporations report the identical. 
Income: We noticed 20% greater income amongst corporations utilizing e-signatures, on-line search adverts, on-line schedulers, and on-line consumption varieties. 
Conversion charges: We noticed improved conversion charges amongst corporations utilizing e-signatures (12%), on-line consumption varieties (12%), and on-line schedulers (10%).
Time to rent: We noticed improved conversion charges amongst corporations utilizing on-line schedulers (15%) and on-line consumption varieties (14%). 

Mid-sized corporations are investing in software program, however lag behind in cloud-based LPM adoption

For the typical mid-sized legislation agency, employees salaries are the biggest expense, making up 41% of complete prices. In different phrases, mid-sized corporations are paying slightly underneath half of their bills to their individuals. In any other case, lease, advertising, and workplace bills—the subsequent three largest spending areas—usually make up a mixed 16% of spending. 

Notably, the typical mid-sized agency spends 2% of its bills on software program—practically twice the U.S. Census trade estimate—and places the next proportion of their bills in the direction of software program than smaller corporations. 

For mid-sized legislation corporations, cloud-based knowledge storage, video conferencing, digital signatures, on-line and digital funds, accounting software program, and cloud-based apply administration software program are among the many hottest applied sciences. Nonetheless, mid-sized corporations are lagging behind on cloud-based authorized apply administration (LPM) software program adoption. Solely 38% of mid-sized corporations use LPM software program, in comparison with 71% of smaller corporations. 

Our findings on mid-sized agency spending and adoption habits

The highest bills amongst mid-sized corporations are employees salaries (41%), different bills (28%), lease (6%), advertising (5%), workplace bills (5%), insurance coverage (5%), companion salaries (4%), skilled charges (4%), and software program (2%). 
The common mid-sized legislation agency spends 2% of its bills on software program—practically twice the U.S. Census trade estimate. 
The preferred expertise amongst mid-sized legislation corporations embrace cloud-based knowledge storage instruments (50%), video conferencing (45%), digital signature instruments (45%), on-line or digital funds instruments (41%), and accounting software program (39%).
Solely 38% of mid-sized corporations use LPM software program in comparison with 71% of smaller corporations. 

The ultimate phrase on the 2025 Authorized Tendencies for Mid-Sized Legislation Companies report

Mid-sized legislation corporations are quickly embracing AI, shedding their fame as legaltech laggards. This shift isn’t nearly relevance—it’s a strategic response to market pressures and consumer expectations, positioning these corporations as trade leaders.

With AI adoption comes the necessity to rethink billing fashions. Many mid-sized corporations are turning to flat charges and subscription pricing to satisfy consumer calls for for transparency. But, hourly billing stays important, with these corporations utilizing extra various charges than smaller corporations, reflecting larger specialization. Commonly reviewing billing practices is essential to staying aggressive.

Success now is determined by greater than authorized experience—corporations should entice and retain purchasers by understanding the place they seek for attorneys and what influences their decisions. Assessing ROI and leveraging expertise to spice up consumer conversion and hiring velocity are important.

To safe long-term success, mid-sized corporations should additionally make investments properly. Growing adoption of cloud-based authorized apply administration software program—the place they lag behind smaller corporations—may supply vital benefits.

Able to dive into these matters in additional element? Obtain the 2025 Authorized Tendencies for Mid-Sized Legislation Companies report!

We revealed this weblog submit in March 2025. Final up to date: March 28, 2025.

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Clio, Know-how