Smokeball has released its 2025 State of Law Report, suggesting that a surprising 53% of small firms and solo practitioners have now integrated AI into their workflows. This is a significant increase from the 27% of firms that said they are using AI tools in 2023, as they seek to automate routine tasks, improve efficiency, and enhance client service.
“AI is no longer a buzzword in legal circles, but a competitive necessity,” said Hunter Steele, CEO of Smokeball. “What’s most encouraging is seeing small firms and solo practitioners leading this technological step forward. They’re discovering that AI is amplifying their capabilities, allowing them to focus on the strategic work that requires their human expertise while technology handles administrative tasks.”
The report finds that familiarity with AI has grown to 80% among legal professionals (up from 74% in 2023), and 69% of respondents are willing to invest time in learning AI tools.
The data indicates legal research, document creation and eDiscovery will be the three areas most significantly impacted by AI in the next one to five years. While adoption accelerates, challenges remain: 53% of respondents express ethical concerns about AI and nearly half remain unsure about AI regulations, underlining the need for clearer guidance.
Other key findings from the report include:
- Work-life balance remains critical: If given more hours in their day, half of lawyers would prioritize family time, with burnout contributing significantly to talent attrition.
- Digital marketing gains importance: While 85% of firms cite referrals as their primary growth channel, 43% now identify digital marketing as key to client acquisition.
- Cybersecurity concerns escalate: Incidents doubled from 5% to 10% in 2024, prompting 37% of firms to increase security investments.
- Return to office accelerates: A 10% year-on-year increase in firms operating fully in-office reflects a growing preference for in-person collaboration.
To download Smokeball’s 2025 State of Law Report, visit www.smokeball.com/state-of-law.
This report is an interesting contrast with Actionstep’s recent UK report, which found very limited AI adoption among midsize law firms. https://www.actionstep.com/blog/resources/actionstep-publishes-inaugural-uk-midsize-law-firm-priorities-report/