Almost 100 per cent of Australian legal professionals use AI in some capacity – the highest uptake in the world, according to new research.
The Australian legal market is one of the most AI-mature markets, with 98 per cent of legal professionals using AI in some capacity, outpacing the US, Canada, and UK/Ireland, Clio’s 2025 Legal Trends Report has revealed.
Clio’s annual Legal Trends Report draws on surveys of legal professionals and the general population across multiple international markets, with the majority of respondents recruited through independent research panels.
According to the most recent findings, 66 per cent of firms using AI reported a direct positive impact on revenue, and most firms in Australia have adopted AI within the last year, reflecting rapid acceleration as the profession leans into legal tech and AI.
Seventy-seven per cent of firms that increased revenue with AI attributed the increase in revenue to improved operations such as document generation, workflow automation, and client communication. Additionally, growing firms were revealed to be twice as likely to leverage automation than stable firms, and nearly three times more likely than shrinking firms.
In conversation with Lawyers Weekly at Clio Innovate Legal 2025, following the release of the report, Clio chief operating officer Ronnie Gurion said that “almost every firm in Australia uses some form of legal practice management”, which is not the case in the US or UK legal markets.
Firms with wide AI adoption are nearly three times more likely to report revenue growth compared to firms that have not adopted AI, and Gurion said that the most successful firms are using AI for intake automation and document creation.
“[Firms] are automating workflows in a very efficient, scalable manner. On the document creation side is the other piece where you see massive amounts of time savings there,” he said.
“Research is less prevalent, but I think that’s also starting to and will become a big additional area of efficiency for firms that are very research-based.”
Early AI adopters are also adjusting pricing strategies, exploring new revenue models, and positioning themselves ahead of the curve as the industry shifts away from the billable hour, according to Clio CEO and founder Jack Newton.
“Law firms are facing a once-in-a-generation opportunity to redefine how they work,” he said.
“Firms stuck in old habits will stall, while those betting on AI and client-first innovation will define the next era. The age of billable hours and hiring sprees is fading. The firms that thrive will be the ones building sustainable, technology-driven practices.”
More firms are also transforming their entire firm operations, especially BigLaw firms.
“What we see in the industry, and not just in legal tech, but in AI as a whole right now, is there’s a lot of willingness to spend. Innovation budgets, appoint solutions, experimentation, let’s sign a one-year contract, let’s deploy this within this division or this department or this practice,” Gurion said.
“And what the leading firms are doing now is really taking more of a central approach and saying that’s not good enough anymore, that was good to dip our toe in the water, so to speak. Now it’s a more holistic view of really doing a transformation project, how do we reimagine the way that we want to serve our clients, the way we want to serve our internal constituents and get work done.”
Neurological study on legal professionals using tech
For the first time during the 10-year history of the report, Clio also conducted an industry-first neurological study of legal professionals, working with neuroanalytics company Neuro-Insight.
Clio analysed electrical brain activity in 63 legal professionals as they completed a set of time work tasks related to client intake, matter creation, reporting, and document summarisation. Participants completed each task using traditional tools like spreadsheets and PDF documentation as a control, and with Clio.
The study measured total cognitive load based on neurological indicators such as emotional strain, active mental focus, and memory demand. The findings revealed substantial findings that demonstrate how legal technology and AI can greatly improve firm performance while reducing the mental burden on legal professionals.
According to the findings, emotional strain decreased by 16 per cent during client intake, with 93 per cent of emotions indicating excitement and happiness. Overall cognitive load also dropped by 25 per cent using legal technology, with participants using less mental energy to complete their work.
Clio dived into neurological research to really look at the “human aspect” of firms adopting AI, added Gurion.
“Are lawyers happier? Are they more successful? Are they feeling satisfied with the work and the technology? And we wanted to try to go deeper than just responses in a survey, but to use a deeper level of insight,” he said.
“It was really insightful to see the same tasks [completed] with and without technology, Clio being the technology stack that we used. It’s just really dramatic changes in their brain chemistry and their responsiveness.”
The notion of AI and legal tech easing the cognitive load for lawyers is also just “the tip of the iceberg” when it comes to wider adoption of tech in the profession, with Gurion predicting that legal professionals will increasingly focus on strategy and value-add for clients.
“If you think about how much you used to ChatGPT – I’ve gone from using it casually to it being one of the most common tools. It’s not ad-based and you don’t have to pick and choose which of these 50 blue links is really good content,” he said.
“You just really trust the output more. And so, the cognitive load will continue to, I think, get lower and lower and lower. [But] I don’t think people are just going to be working half-time jobs. I think people will fill up the time to add value. Humanity will adapt, find ways to use their creativity, the brain, and knowledge.
“On one hand, I think the cognitive load of a lot of the stuff that people are doing today that is kind of the traditional legal work will probably get removed. Certainly, for the work that people are doing today, I think you’re going to see that continue to erode.”
The study also showed that when using Clio’s AI Active Focus feature, participants were twice as likely to provide the correct response, particularly when calculating billables (72 per cent) and creating new matters (25 per cent).
This proves how mental effort can be reduced in routine administrative work, Joshua Lenon, lawyer in residence at Clio, said.
“The data confirms that AI and legal technology are advancing the profession in measurable ways,” he said.
“We are seeing clear evidence that when lawyers use the right tools, they experience lower cognitive strain, higher accuracy, and stronger engagement in their work. These are meaningful gains that point to a more sustainable and rewarding future for legal professionals everywhere.”
Lauren is the commercial content writer within Momentum Media’s professional services suite, including Lawyers Weekly, Accountants Daily and HR Leader, focusing primarily on commercial and client content, features and ebooks. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications. Born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling.
