3 in 4 law firms say demos key to tech decision making

The review is based on survey responses collected from 1,250 legal professionals across Australia, with research conducted between 4 February and 5 May 2025. The sample includes 914 professionals working in private practice and 269 in in-house roles, spanning across a range of firm sizes, locations, and practice areas.

As previously reported by Lawyers Weekly, although most law firms are planning to increase investment in legal tech over the next year, more than 50 per cent haven’t adopted any new legal tech in over five years.

Demos favoured

According to the findings, cost is still the most important factor in decision making, but demonstrations are almost as critical.

Agile noted that 78 per cent of respondents cite cost-benefit analysis as the most widely used evaluation tool, while demos are nearly as common, with 74 per cent of firms looking to test functionality with vendors.

Just under half (47 per cent) conduct security or compliance checks via IT or legal teams, the research showed.

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Pilot programs and case studies are referenced less, Agile said, suggesting that firms are deprioritising third-party narratives, in favour of vendor-led validation. First-hand assessment is overtaking anecdotal trust.

“Legal teams want confidence that a solution will deliver in practice, not just on paper. Demonstrations are giving buyers that clarity without the overhead of a full pilot,” said Agile Market Intelligence director Michael Johnson (pictured).

A public version of the report will be made available to participants and industry in early August 2025.

Increased tech spending coming

The interim results also showed that, across different organisation sizes, over half of firms project an increase in tech spend for the 12 months, averaging out to 58 per cent expecting increased spending, 10 per cent of which anticipate a significant (20 per cent or greater) increase in their budgets.

The larger the firm, Agile noted, the higher the investment intent: 66 per cent of BigLaw anticipate growth in their tech budgets, with 14 per cent projecting significant growth.

“Projected spend scales with firm size, but the uplift across the market projected increase across the market points to a shared shift in mindset,” Agile said.

“Whether it’s automation, legal research or practice management, firms are increasingly viewing technology as essential infrastructure.”

Johnson added: “Firms aren’t short on intent. The next phase hinges on execution.”

“Vendors who make onboarding frictionless, prove outcomes fast, and speak the language of legal work will be the ones who break through.”

Leaders rule the roost

Elsewhere, respondents noted that when considering tech solutions to adopt, partners or senior leadership provide the direction for 74 per cent.

Input from staff end users (46 per cent) and IT teams (37 per cent) also play a meaningful role, while external consultants are least likely to be involved (14 per cent).

Despite increasing investment in legal tech, Agile surmised, “decision-making power remains concentrated at the top”. Senior leadership plays a dominant role during the consultation stage, with nearly three-quarters of firms reporting that partners provide strategic lead when reviewing tech options.

Johnson said: “Leaders are still steering the ship, but firms that build in user and IT feedback early tend to adopt with more confidence and fewer regrets.”

“Consultation isn’t just a step, it’s a signal of implementation readiness.”