Here is my recent Daily Record column. My past Daily Record articles can be accessed here.
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The Legal Tech Divide: How Firm Size Determines Work and Innovation Trends
How does your firm compare when it comes to AI implementation, hybrid work, and finance management software adoption? Not sure? Then check out the 2025 AffiniPay Legal Industry Report, which was released earlier this week. This report is based on responses from over 2,800 legal professionals, and the data highlights notable differences in how firms of various sizes are approaching technology adoption and workplace flexibility.
The data shows that while large firms and solo practitioners are embracing AI and hybrid work, smaller and mid-sized firms are sticking with more traditional in-office approaches and slower tech adoption. These differences reflect the practical realities of running a law firm in 2024, with firm size impacting a range of issues from remote work policies to software implementation.
First, let’s take a look at work arrangements. This data is a good example of this divide, showing that while only 28% of firms overall require full-time in-office work, smaller firms are the most likely to enforce it. 36% of firms with 2 to 5 lawyers mandate in-office attendance for all employees, the highest of any group.
In comparison, solo practitioners prefer remote work, with 31% operating virtually—a number far above the overall average of 19%. For solos, remote work isn’t just about flexibility; it’s often a cost-saving measure that eliminates the need for expensive office space.
Mid-sized and large firms are also embracing hybrid models. Firms with 6 to 20 lawyers show a strong preference for hybrid schedules, with 32% implementing them for some employees—nearly double the overall average. Firms with 21 to 50 lawyers follow suit, with 36% offering hybrid work for some staff and 28% extending it to everyone.
The data shows that the largest shift, however, is occurring at large firms. Only a small number of respondents worked in firms with 51 or more lawyers, but of that subset, 61% of those firms offered hybrid schedules for all employees, nearly three times the overall average. However, fully remote and fully in-office arrangements are rare in this group, with only 6% of firms choosing either extreme.
Technology adoption follows a similar pattern. Large firms are moving faster when it comes to legal-specific generative AI tools. According to the survey data, 39% of firms with 51 or more lawyers report using legal-specific generative AI, compared to approximately 20% with 50 or fewer lawyers, regardless of firm size. One reason for this large gap is likely because large firms already have costly major legal research platforms in place, most of which are rapidly integrating AI features.
Payroll software adoption rates are also impacted by firm size. While one-third of all legal professionals surveyed use payroll software, its adoption proves to be far more common in larger firms. According to the data, only 23% of solo practitioners use payroll software, likely because they have few, if any, employees. But at firms with 51 or more lawyers, 50% use payroll software, likely due to the increased administrative complexity inherent in larger firms.
No matter how you look at it, the survey data makes one thing clear: firm size isn’t just about headcount. It impacts workflows, software choices, and office footprints. Large firms are leading the way in AI and hybrid work, while smaller and mid-size firms continue to favor in-office setups and take a more cautious approach to new technology. Solo practitioners fall somewhere in between. Whether it’s flexibility, automation, or AI-driven efficiency, firms of all sizes are making choices that reflect their unique needs.
Where does your firm fit in? To obtain even more benchmark data, including insights by practice area, check out the full report for statistics on issues ranging from time tracking and billing software implementation to preferences about virtual court proceedings.
Nicole Black is a Rochester, New York attorney, author, journalist, and Principal Legal Insight Strategist at MyCase, CASEpeer, Docketwise, and LawPay, practice management and payment processing tools for lawyers (AffiniPay companies). She is the nationally-recognized author of “Cloud Computing for Lawyers” (2012) and co-authors “Social Media for Lawyers: The Next Frontier” (2010), both published by the American Bar Association. She also co-authors “Criminal Law in New York,” a Thomson Reuters treatise. She writes regular columns for Above the Law, ABA Journal, and The Daily Record, has authored hundreds of articles for other publications, and regularly speaks at conferences regarding the intersection of law and emerging technologies. She is an ABA Legal Rebel, and is listed on the Fastcase 50 and ABA LTRC Women in Legal Tech. She can be contacted at niki.black@mycase.com.