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Legal IT

Legal technology predictions for 2025

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At the end of the year and the beginning of a new one, many publications give their predictions for the new year. In this article, we will go over a selection of legal technology predictions for 2025. We can group them in four categories: legal technology predictions that do not involve AI, predictions on legal issues involving AI, predictions on AI in legal services, and finally, some other legal technology predictions on AI.

Legal technology predictions that do not involve AI

While most of the authors focus on the growing impact of AI, there also are legal technology predictions that do not involve it.

A first set of predictions has to do with client demands. Authors anticipate a significant further proliferation of blockchain, cryptocurrencies, and smart contracts. This will result in a growing demand for lawyers who are versed in these matters. Experts also predict that clients’ expectations will keep on rising, and that law firms will have to adapt to that demand. Already, the legal industry is witnessing a shift towards more client-centric services. Overall, experts also predict a growing demand for legal services for SMBs.

A second set of predictions has to do with the investments law firms will be making. Experts predict an overall increase in investments in technology, and more specifically, apart from AI, increases in spending on knowledge management and on cybersecurity.

Cybersecurity remains a critical concern for law firms, especially with the growing reliance on digital tools and AI. The sector is expected to invest more in cyber resilience strategies to counter potential threats, ensuring the protection of sensitive legal data and maintaining client trust. General counsels and Chief Legal Officer need to up their game when it comes to cybersecurity.

Finally, experts expect the billable hour to further decline, and fixed fees and subscription billing to increase.

Predictions on legal issues involving AI

Several authors also focus on legal issues involving AI. On the one hand, there is the topic of regulating AI, and on the other hand, there is the topic of litigation.

Both the EU and the Council of Europe (CoE) published their frameworks on regulating AI. Unlike the EU AI Act, the Council of Europe’s Treaty is open to all countries who want to sign up. More sign-ups are expected. When it comes to the US, the situation is unclear, as the incoming Trump administration may withdraw from the CoE Treaty. Most experts do not expect the Trump administration to impose its own framework. Several authors do see initiatives on both a state level and on the level of local bar associations. The latter may impose ethical rules regarding the use of AI in law firms, especially when it comes to lawyers using generative AI.

There also is an anticipated increase in litigation related to AI tools and practices. One of the areas where experts predict more litigation involves the disputes over unauthorized use of copyrighted materials for AI training. They also expect an increase of product liability lawsuits involving AI-systems. And an increase in litigation is also anticipated when it comes to AI-induced biases in processes like job screening, and potential antitrust violations stemming from AI-driven pricing tools.

Predictions on AI in legal services

Most of the predictions, however, focus on how Artificial Intelligence will impact the delivery of legal services. And the topic that is most talked about is the introduction of AI agents in the delivery of legal service. Some call it the most important evolution for 2025.

So, what are we talking about? An AI agent is a software program designed to operate independently, perceiving its environment, analysing information, and taking actions to achieve specific goals. It gathers data through sensors or input systems, processes this data using logic or machine learning models, and performs tasks or interacts with its surroundings based on its objectives. These agents are widely used in applications such as virtual assistants, self-driving cars, and automated decision-making systems, allowing them to function without constant human intervention. So, you can think of them as the next generation, more advanced and more versatile bots. And in 2025, they’re expected to have a huge impact on the delivery of legal services and on the way that law firms and legal departments operate. We will discuss AI agents more in depth in a follow-up article.

AI is also become more integrated in all aspects of the delivery of legal services, from optimizing and automating workflows, enhancing knowledge management, and handling specific tasks autonomously. Most experts anticipate that all cloud-based software for lawyers and law firms will be integrating more AI into their systems. Overall, authors also predict that generative AI will become better and more specialized in specific legal areas.

Several authors talk about how artificial intelligence is already leading to a sharp increase in productizing legal services. This applies to law firms, legal departments, but also to alternative legal service providers. Some expect hybrid lawyers and/or self-service legal platforms to become as ubiquitous as online banking. Some even anticipate that more and more lawyers will start collaborating with robot lawyers. And for the first time, some even predict that within 5 years, the combination of the advances in AI and breakthroughs in quantum computing will start replacing entry level lawyers.

Other legal technology predictions on AI

Some experts also made some other legal technology predictions on AI. They are optimistic that Generative AI will improve access to justice, and that we will see courts who will start using Generative AI, as well to become more effective.  They also expect a consolidation movement in the market of legal technology service providers. Finally, some expect that Legal AI and Generative AI will become part of law school curriculum.

 

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Legal IT

Productizing Legal Services

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Three evolutions have put the idea of productizing legal services firmly in the spotlight. First, there is the increased demand for Alternative Fee Arrangements (AFAs): clients don’t like billable hours because they prefer to know in advance how much something will cost. So, lawyers started using fixed fees for certain services (e.g., a non-disclosure agreement will cost you amount X), or started offering subscription billing, e.g., as an option. With subscription billing a client pays a monthly fee, which entitles him or her to x amount of work, or, e g., to so many contracts, etc.

Another area where productizing legal services pops up is in software that analyses and automates workflows in law firms. The increased usage of AI is leading to major progress in automating workflows, which in turn allows these workflows to be productized.

But the best examples of legal services being productized are probably the services offered by robot lawyers and legal chatbots. These services have completely been automated and turned into products that offer a solution to a legal problem. There already are solutions, e.g., to create legal documents and forms, to review contracts, to appeal parking and other traffic tickets, to offer first advice on divorce, or that will submit damage claims for you with regard to flights, that assist you with requesting maternity leave or in case of landlord contract violations, etc. And the list is growing on an almost daily basis.

So, what does it mean to productize legal services? Simply put, productizing legal services means that you are turning your legal services into products. Services are normally delivered one at a time. (Which implies that there is a limit to the number of billable hours one can do over a given period of time). Products on the other hand can be produced and sold at scale. Producing more products is a matter of enhancing production capacity. And with software solutions, that is not hard to do. Now, obviously, not all legal services lend themselves to being productized. But the three evolutions described above show that many can. A study found that, at present, 23% of the work a lawyer does can be automated. With the continued progress that is being made in the field of legal Artificial Intelligence, that percentage will only rise.

There are several benefits to productizing legal services. The first one, already hinted at above, is scalability. Not only does a robot lawyer, e.g., take seconds to review a contract, where a lawyer takes hours, but if it reaches its capacity, it’s just a matter of increasing that capacity, typically at minimal cost. A second benefit is predictability: With a product, you know in advance how much it will cost. A third benefit is a better match between offer and demand, as the client knows in advance what he or she will be receiving for his or her money. As a result of this, you gain consumer trust, which is a fourth benefit. A fifth benefit is that when you start productizing your legal services, you are really maximizing your productivity.

As the above examples illustrated, the role played by technology is crucial in productizing legal services. Only now have we reached a point where the technology is available to start productizing legal services. These technologies allow to automate the workflow and thus maximize your operational efficiency. They also allow the scalability of the solutions offered.

The way to start productizing legal services is by analysing processes and workflows, standardizing and automating them the maximum extent. If you want to launch yourself in the robot lawyer market, find a common problem, preferable in a niche that requires some expertise; analyse how much of the workflow can be automated, and if it can, offer an easy to deliver solution. Even without considering offering robot lawyer service, analysing workflows and processes at your law firm will allow you to automate them, which will benefit your firm.

 

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