The legal profession is undergoing a transformative shift as artificial intelligence (AI) becomes increasingly integrated into daily workflows. The 2025 Legal Tech Trends report by NetDocuments highlights six key trends that are shaping the future of AI-driven legal practice, offering insights into how legal professionals can prepare for and leverage these changes.
1. Recruitment Will Focus on AI Abilities and Knowledge
The rise of AI is reshaping how legal organisations hire and manage talent. Traditional roles are being redefined to include tech-based competencies, and new positions such as AI Ethics Officers and Generative AI Specialists are emerging. According to Ed Sohn of Factor, the future of legal practice will include AI, and firms must adapt by hiring professionals with AI skills. Law schools are already integrating AI training into their curricula to meet this demand. Organisations that fail to adapt risk losing top talent, especially as burnout and stress drive many legal professionals to leave the industry.
2. Agent-to-Agent Experiences Will Be a Superpower for Early Adopters
The next leap in AI innovation is “agentic AI,” which adapts to new information without direct human intervention. In 2025, early adopters will gain a competitive edge by using AI agents to streamline workflows and deliver services faster. Legal professionals increasingly expect AI tools to work seamlessly within their existing platforms, eliminating the need to switch between tools. By integrating AI into familiar environments, legal teams can maximise efficiency and minimise disruption.
3. AI Credentials Will Influence Partnerships and Contract Renewals
As AI becomes a critical driver of performance, businesses will expect their partners and service providers to demonstrate a commitment to AI. Law firms and in-house teams are increasingly relying on strategic partnerships to access AI capabilities without the burden of building and maintaining complex systems in-house. Vendors with strong AI credentials and a focus on innovation will be preferred, as clients demand clear evidence of how AI delivers measurable benefits.
4. The DMS Will Become the Foundation for Strategic AI Initiatives
The traditional Document Management System (DMS) is evolving into an AI-powered platform that drives legal workflows. Modern DMS platforms now offer semantic search, intelligent automation, and contextual analysis, enabling legal teams to manage documents more efficiently. By 2025, 67% of firms plan to upgrade their DMS to include AI-driven features, which will enhance document workflows, automate repetitive tasks, and improve decision-making.
5. AI Ethics and Transparency Will Be a Top Priority
As AI adoption accelerates, ethical considerations and transparency will become critical. Legal professionals must ensure that AI systems comply with regulations like the EU AI Act and GDPR, which emphasise data security, bias prevention, and human oversight. Ethical AI committees will become more common, helping organisations navigate the complexities of AI while maintaining client trust. Explainable AI models, which provide transparency into how conclusions are reached, will be essential for building confidence in AI-driven solutions.
6. Law Firms Will Adopt More Alternative Billing Models
AI is driving law firms to rethink their billing models. By automating routine tasks, AI reduces the time required for certain legal services, prompting firms to explore alternative fee arrangements such as flat fees, subscriptions, and hybrid models. These models align costs with outcomes rather than time spent, offering clients greater predictability and transparency. Firms that embrace these changes will be better positioned to meet client demands and remain competitive.
Conclusion
AI is undeniably transforming the legal industry, offering opportunities to enhance efficiency, improve client service, and refocus on high-value work. By preparing for these trends and embracing innovation, legal teams can position themselves to lead in the AI-driven future. As Michael Scuvee of Coca-Cola Europacific Partners noted, “When AI takes over repetitive tasks, lawyers can refocus on high-end creative legal work and exploring bigger, strategic questions.”
This article summarises the key insights from the 2025 Legal Tech Trends report, highlighting the transformative impact of AI on the legal industry and offering actionable steps for legal professionals to stay ahead in an evolving landscape.
