Law Firms to Boost Tech Spending Per Lawyer by Nearly 9% in 2026
Law firms plan to increase technology spending per lawyer by 8.7% in Q2 2026.
Why it matters: Increased legal tech investment affects budgeting and tool choices, crucial for firms competing amid stagnant revenue growth per attorney. Prioritizing AI and knowledge management signals shifts in how law firms operate and serve clients.
- Law firms will raise total tech and knowledge management spending by 11.6% in Q2 2026.
- Tech spending per lawyer is projected to grow 8.7% in the same period.
- In 2025, tech investments rose 9.7%, knowledge management tools 10.5%.
- 85% of law firms say client demands drive their AI investments, but only 10% describe their tech as fully scaled.
Law firms in the United States are set to increase investments in technology and knowledge management tools significantly, with an 11.6% overall rise and an 8.7% increase per lawyer scheduled for the second quarter of 2026, according to Thomson Reuters analysis.
This trend follows strong growth in 2025, when technology spending climbed 9.7% and investments in knowledge management tools grew 10.5%, marking the fastest real growth seen in the legal industry, reports LawNext.
Client demands continue to be a major factor: 85% of law firms indicate that their AI investment decisions are driven by client expectations, per Litera's survey. However, only 10% of firms describe their technology implementations as "fully scaled and continually evolving," a decline from 25% the previous year, highlighting challenges in tech adoption (KPMG 2026 survey).
Given stagnant revenue growth per attorney, these increased technology investments suggest law firms are focusing on transforming their operating models to meet rising client demands and remain competitive. Raghu Ramanathan, President of Legal Professionals at Thomson Reuters, notes the industry is at a "critical inflection point" balancing evolving demands and rising expenses.
Chief financial officers agree, with 68% forecasting increases in IT and digital transformation spending over the next 12 months (Grant Thornton).
Yet, Marcus Murph, Head of Technology Consulting at KPMG US, emphasizes that firms are taking longer than expected to scale emerging technology investments, underscoring the gap between intention and execution.
By the numbers:
- 11.6% — projected overall increase in law firm tech and knowledge management spending in Q2 2026
- 8.7% — projected tech spending increase per lawyer in Q2 2026
- 85% — law firms citing client demands as main driver of AI investments
Yes, but: While investment is rising, only a small fraction of firms report their technology systems as fully scaled and evolving, indicating implementation challenges remain.
What's next: Expect firms to focus on scaling AI initiatives and improving ROI measurement as competitive pressures and client demands continue to shape legal tech budgets in 2026.