The ROI of LegalTech 2025: Why Law Firms and In-House Legal Teams Can’t Afford to Wait

Introduction

LegalTech is no longer an experimental tool—it's the centerpiece of sustainable growth and competitive advantage for law firms and in-house counsel across the globe. The 2025 Thomson Reuters ROI of LegalTech report reveals that technology investments are delivering measurable returns faster than ever, fundamentally redefining how the legal profession operates and competes.

In today’s legal sector, technology is no longer an experiment – it’s the cornerstone of strategic growth - Thomson Reuters

The legal sector is at a tipping point. With globalization, aggressive regulators, and tech-savvy competitors, the pace of change has accelerated dramatically. Legal technology is now a must-have foundation for maintaining relevance and superiority.

Nearly 54% of law firm leaders expect more than 20% ROI within 18 months, while an even higher 72% of in-house teams anticipate the same returns in that timeframe. LegalTech adoption is not just about efficiency—it's about survival in a rapidly evolving marketplace.

Legal professionals identified three key ROI drivers that go far beyond cost savings:

• Risk Reduction: Over half of law firms (51%) and in-house teams (49%) list data and risk mitigation as top technology metrics. In an age of cybersecurity exposure and regulatory scrutiny, this is a business imperative.
• Service Quality: 58% of law firm respondents and 51% of in-house leaders prioritize improved client and stakeholder service—proving that LegalTech directly enhances performance.
• Innovation & Control: 41–48% cite innovation levels and cost control as crucial ROI indicators, confirming tech’s role in building smarter, leaner operations.

The result? Firms using AI-based tools for contract review, legal research, and discovery save up to four hours per task, elevating both productivity and job satisfaction.

Beyond Efficiency: The Human ROI

The report highlights a compelling emotional dimension: technology isn’t just increasing billable hours—it’s also improving work quality and well-being.

Lawyers using LegalTech report that it reduces stress (33%), boosts confidence (32%), and provides a genuine competitive edge (36%). In-house counsel mirror these findings, linking legal tools to greater collaboration (30%) and workplace confidence (33%).

This emotional return is fast becoming a weapon in the war for talent. Forward-looking firms and departments are using tech adoption as a brand differentiator to attract and retain top professionals.

Risk, Trust, and the Tech You Can Believe In

Legal professionals demand secure, integrated, and trusted technology. For both law firms and in-house teams, security certifications (ISO-compliance) and trusted brands are top green flags. On the flip side, failing security checks and high implementation costs are immediate deal breakers.

With 65% of law firms and 79% of in-house teams already having an AI or Responsible AI policy in place, the days of speculative AI usage are gone. Governance and responsible AI are now key competitive pillars.

Leadership Is Listening—If You Show the Numbers

Half of the surveyed legal leaders describe themselves as progressive or pioneering in technology adoption. A further 45% identify as pragmatic—meaning that hard data on ROI, security, and quality speaks louder than hype.

If you can demonstrate tangible ROI metrics, law firm managing partners and corporate general counsels are ready to scale LegalTech fast. Hesitation, however, comes at a cost—decision cycles have shortened, and those that delay risk being left behind.

Ready for 2026: The LegalTech Agenda

The report provides a clear action plan for 2026, signaling the next phase of digital maturity in law:

• Accelerate AI integration while maintaining rigorous governance frameworks.
• Prioritize cybersecurity and compliance resilience—failure to do so can cost millions and reputational damage.
• Invest in end-to-end solutions, not fragmented tools, to enable interoperability across platforms.
• Focus on talent and culture— LegalTech is now a driver of engagement, not just productivity.
• Measure beyond cost—evaluate intangible ROI like brand reputation, employee satisfaction, and client impact.

Both law firms and in-house legal teams are expected to increase LegalTech investment by over 20% in 2026, underscoring the consensus that digital transformation is no longer optional—it’s strategic armor for the next generation of legal service delivery.

As the Thomson Reuters ROI of LegalTech 2025 report concludes, the future of law belongs to those who measure what matters and move fast. The return on LegalTech investments is high, its benefits multidimensional, and its adoption rate accelerating. Download the report here.

For law firms—this means achieving operational excellence and stronger client retention. For in-house counsel—it enables risk resilience, agility, and smarter business influence.

In 2026 and beyond, LegalTech is not just a tool—it’s the new competitive moat.

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Thanks & regards - Amita!

Get in touch: reach@ayta-legaltech.com

AYTA LegalTech Consulting, everything LegalTech

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