AffiniPay 2025 Legal Industry Report
Insights on Law Firm Profitability, Efficiency, and AI Adoption
Law firms are no strangers to change, but today’s challenges—rising client expectations, financial pressures, and rapidly advancing technology—demand a new approach.
From solo practices to large firms, those embracing AI, automation, and digital payments are setting new industry standards. But where are firms excelling? And what barriers remain?
The AffiniPay 2025 Legal Industry Report unpacks how legal professionals are optimizing workflows, improving profitability, and future-proofing their firms for long-term success.
Preview
Inside the 2025 Legal Industry Report
Law Firms Struggle with Getting Paid
Law firms struggle with cash flow, and 68% still face challenges with fee collection. The firms that automate invoicing, time tracking, and online payments see:
- Faster payments and fewer outstanding invoices
- Higher collection rates with automated payment options
- Stronger financial stability with trust accounting and billing tools
Inside the report: Firms using AI-driven time tracking recover significantly more billable hours and increase revenue.
Automation Is Eliminating Law Firm Inefficiencies
AI isn’t replacing lawyers—it’s eliminating inefficiency. 61% of firms report greater efficiency with automation, including:
- AI-powered billing & invoicing to reduce admin work
- Passive time tracking to capture more billable hours
- Automated client intake to streamline onboarding
Inside the report: 82% of firms now accept online payments, and those that offer flexible billing options collect more revenue.
Flexibility Is No Longer Optional for Law Firms
Hybrid and remote work are here to stay. Firms that invest in cloud-based tools are better positioned to attract top talent and more clients.
- 78% use e-signatures for fast, secure document processing
- 76% rely on e-filing to streamline case management
- 64% use cloud-based billing to manage payments from anywhere
Inside the report: Only 28% of firms still require full-time in-office work. Is work flexibility becoming the expectation?
Data-Driven Firms Are Maximizing Profitability
Successful firms aren’t just tracking cases—they’re tracking performance. Firms leveraging data-driven insights see:
- Higher case values with predictive analytics. 14% use it to analyze firm and case data and matters.
- Smarter financial decision-making with AI. 47% of legal professionals seek AI tools for firm data analysis and financial insights.
- Increased clarity around where AI adds value. 42% of firms expect AI to boost efficiency and reduce costs, helping pinpoint where human expertise is most needed.
Inside the report: Firms using automated case and financial management tools report measurable gains in efficiency, revenue, and client satisfaction.
Methodology
Expert-Led Research, Real-World Impact
Backed by expert analysis and firsthand data, this report provides a roadmap for law firms looking to optimize efficiency, increase profitability, and future-proof their practice.
- Powered by data from 2,800+ legal professionals across firm sizes and practice areas.
- Combines quantitative survey data with qualitative insights from real firms to show how law firms are responding to financial pressures, client expectations, and emerging technology.
- Provides actionable takeaways to help firms make smarter business decisions, streamline operations, and drive long-term growth.
Our Advantage
AffiniPay’s Answer to the Legal Industry’s Evolution
The challenges (and opportunities!) outlined in this report aren’t just theoretical—they’re solvable with the right tools. AffiniPay’s legal brands are already helping law firms thrive.
LawPay ensures firms get paid faster, stay compliant, and eliminate financial bottlenecks.
- 82% of firms now accept online payments—and 59% report increased collection rates.
- Automated trust accounting tools reduce compliance risk and save hours of admin work.
- Built-in time tracking and invoicing makes it easier than ever to streamline billing and improve cash flow.
MyCase is the ultimate tool for law firms looking to do more in less time.
- Integrated time tracking, invoicing, and three-way trust accounting eliminate financial blind spots.
- AI-powered workflow automation helps firms operate more efficiently.
- Cloud-based access ensures seamless collaboration for hybrid and remote teams.
Docketwise removes barriers, automates workflows, and helps immigration firms grow faster.
- 47% of immigration attorneys already use AI to speed up case processing.
- Multi-language support streamlines client communication and boosts effective collaboration.
- Smart forms offer a single intake questionnaire that auto-completes every other immigration form.
CASEpeer equips personal injury firms with the tools to run a more profitable, data-driven practice.
- Personal injury firms using AI expect 61% productivity gains and are seeing measurable efficiency improvements.
- Automation-driven firms improve case outcomes by eliminating bottlenecks in medical record requests, document tracking, and task management.
- With cloud-based practice management, personal injury attorneys can manage cases from anywhere.
From The Author
I’ve been writing about legal technology and speaking to my colleagues about the importance of understanding and implementing technology for nearly twenty years...My hope is that the analysis offered in this report provides the benchmarks and information needed to make informed, strategic decisions about your firm in the coming year.
Nicole Black
Esquire
Stay Ahead of the Legal Industry’s Biggest Shifts
The firms that embrace AI, automation, and digital payments today will lead the industry tomorrow.