Only 22% of Law Firms Have a Formal AI Strategy, Study Finds
Just 22% of law firms report having a formal AI strategy, per new Thomson Reuters data.
Why it matters: Low adoption of artificial intelligence keeps most law firms from real efficiency gains, client service improvements, and cost savings. Broader use of AI-powered tools could streamline routine legal work and better match attorneys to tasks—delivering both stronger results and decreased attrition.
- 22% of law firms report having a clear AI strategy (Thomson Reuters).
- Nearly 40% of work allocation decisions rely on personal preference over objective metrics (BigHand via Artificial Lawyer).
- Broader AI use could save the U.S. legal sector $20 billion yearly and 240 hours per professional (Thomson Reuters).
- Womble Bond Dickinson saw 33% higher staff retention and a 10% utilization boost from AI work allocation tools (Artificial Lawyer).
Adoption of artificial intelligence in law firms remains slow, even as potential efficiency gains mount, according to the Thomson Reuters Future of Professionals Report 2025. The research found that only 22% of surveyed firms have a formal AI strategy guiding technology investments and implementation.
- Despite the potential, nearly 40% of legal work assignments are determined by personal preference or relationships instead of workload demand or attorney skill. This leads to uneven utilization and strains both profitability and retention (Artificial Lawyer).
- When firms do adopt AI, tools for document review, legal research, billing, and workflow automation deliver measurable results, including freeing up time for complex legal analysis (ABA Law Practice).
- Womble Bond Dickinson offers one example: the firm increased attorney utilization rates by 10% in two years and saw a 33% staff retention boost in the first year after deploying AI-driven work allocation software (Artificial Lawyer).
According to Mark Francis, a partner at Holland & Knight, AI is now "a core business tool for law firms of all sizes." Still, most organizations have yet to move beyond individual, ad hoc pilots or experiments.
Experts advise that to capture the full economic and talent benefits, law firm leaders must connect technology to business goals and ensure staff understand and trust new tools. AI initiatives tied directly to workload management—like automating work allocation or drafting—drive the clearest returns.
By the numbers:
- 22% — portion of law firms with a formal AI strategy (Thomson Reuters)
- $20 billion — potential legal sector annual savings from AI (Thomson Reuters)
- 33% — staff retention increase at Womble Bond Dickinson after AI adoption (Artificial Lawyer)
Yes, but: Many firms cite slow implementation, concerns over data security, and a lack of staff trust as top challenges to AI adoption—suggesting cultural buy-in is as crucial as technology itself.
What's next: Analysts expect more detailed benchmarking of law firm AI adoption and ROI in the Thomson Reuters update later this year.