2024 Trends for Midsize Law Firms

We’ve made it to 2024! So, what’s in store? With midsize law firms finalizing their 2024 strategic plans, we wanted to cover a few trends we believe law firm professionals should keep top-of-mind this year. We know Artificial Intelligence (AI) is dominating most legal tech conversations, but there are other big trends that law firms shouldn’t neglect.

The legal industry is evolving rapidly amidst challenges like an unstable economy, changing client expectations, growth and decline of practice areas, and retaining and attracting talent. But with these challenges come immense opportunities for the resilient midsize law firms across the globe to adapt and thrive.

We expect to see a lot more midsize law firms adopt new, comprehensive technology, focus on customer expectations, and do more to reduce employee turnover.

Artificial Intelligence (AI)

Let’s go ahead and get the big one out of the way. Everyone’s talking about AI, yet most firms are still a little hesitant to use any free generative AI tools like ChatGPT. When paired with your base technology and automated workflows (using intuitive automation), AI can enable midsize law firms to enhance operations, improve customer experience, and gain a competitive edge. Other areas lawyers can use AI today include contract review and analysis, predictive analytics, and e-discovery. However, there are risks associated with using AI such as security of data and private company or customer details, plagiarism, copyright infringement, misinformation, bias and discrimination, and other legal ethics. AI systems process confidential personal data and if not secured properly there is risk of breaching confidentiality guidelines and attorney-client privilege. 

When assessing AI tools, it’s important for law firms to conduct security reviews to ensure these tools won’t risk their firm leaking sensitive information. Cybersecurity guardrails are a must.

Cybersecurity and Data Management

Speaking of cybersecurity, we expect more midsize law firms to invest in the security of their systems, networks, and programs against digital attacks and security threats like attacks on AI systems, multi-factor faking, more sophisticated ransomware attacks, and other data breach scenarios. In fact, The American Bar Association’s 2023 Cybersecurity TechReport states 29% of respondents reported their law firm has experienced a security breach at some point. In 2023, we learned that three of the top 50 law firms had been breached in the US, UK, and France which raises alarms for midsize law firms.

Today when demands for data security are prevalent, law firms can’t afford to have any type of security breach and need to take the necessary steps to prevent these instances. This includes implementing security systems and ensuring all tools your firm uses has up-to-date security measures, conduct regular audits of security policies to ensure they comply with the latest standards, and conduct training programs for staff members. 2024 will center around how law firms are managing their data and what security measures they’re taking to protect their clients’ most sensitive information.

Intuitive Automation (IA)

For midsize law firms to stay competitive in 2024, embracing intuitive automation is key. Intuitive automation uses smart technology to connect tasks and processes that make work easier and more intuitive for the human user. Before implementing IA, you must pinpoint opportunities for automation like tasks are repetitive and time consuming, where your firm experiences bottlenecks, areas that are most error-prone, data that isn’t shared between systems or teams, and where your firm gets recurring negative client feedback. You can also think about what processes would be a good automation fit by examining frequency and complexity of the process. For example, simple tasks performed without little thought or problem tasks that require some problem solving are great candidates for intuitive automation. Whereas judgement tasks and fuzzy tasks that require intelligent analysis and there are interdependencies among various paths should probably not be automated.

Incorporating intuitive automation can benefit law firms significantly when it’s truly woven across their technology ecosystem using the right tools and data needed. With IA, your workflows will help your team provide faster case initiation and processing, enhance data accuracy and consistency, improve client satisfaction and loyalty, and increase staff productivity and resource optimization. Law firms can streamline their operations and workflows, improve accuracy, and be assured they are delivering high-quality legal services to their clients regardless of the advisor or the matter type.

Client Expectations

Law firm clients today are more tech-savvy and better informed than ever before which is resulting in higher expectations of midsize law firms. For law firms to stay competitive in providing the best client experience, they need to be able to provide better communication, more transparency, high-quality work, all at the best price. Midsize law firms even say improving client satisfaction is a top contribution to revenue in 2024 (stay tuned for more on this in our 2024 US Midsize Law Firm Priorities Report). To keep providing the best service for clients, without the risk of burnout, law firms can set clear expectations with clients early on, leverage technology efficiently, and reduce administrative work.

In our recently published 2024 Australian Midsize Law Firm Priorities Report, enhancing client satisfaction was the third top business priority, after finding new revenue streams and talent recruitment and retention. However, a mere 27% have documented client standards, 18% have client feedback sessions, and only 15% provide client service training to their teams. This discrepancy spotlights an opportunity for law firms to actively invest in training and client standards to ensure positive, consistent client experiences. Technology is another way midsize law firms can keep up with client expectations. Leveraging digital tools that help intuitively automate administrative tasks and keep clients informed in real-time of their case progress, such as a secure client portal, will help law firm professionals spend more time on high-value tasks.

Talent Recruitment and Retention

To attract and retain top talent in 2024, midsize law firms need to provide legal professionals with the resources, flexibility, and connectivity they want. Legal professionals working at midsize law firms in the US and Australia have been experiencing high levels of stress primarily due to understaffing, lack of resources, and long hours which is resulting in more turnover. We see law firms focusing on finding ways to retain their top talent and recruit new talent to alleviate some of the stress factors their employees are experiencing. Areas midsize law firms can focus on include investing in technology that helps lessen the workload through automation and ease, providing a flexible, hybrid work model, and creating opportunities for staff to continue feeling connected with their colleagues and senior leadership.

In 2024, midsize law firms will have to continue to do more with less when competing with bigger firms that have more resources. There are savvy ways midsize firms can embrace new technologies to automate processes and tasks, attract and retain talent, and improve the client experience so they can focus on scaling and growing their firm.

If you haven’t already, download our 2024 Australian Midsize Law Firm Priorities Report to learn more about what midsize law firms in Australia are focusing on this year.

Stay tuned for our 2024 US Midsize Law Firm Priorities Report – Releasing soon!