New research from Agile Market Intelligence has revealed an interesting disparity in AI adoption and integration practices across firms.
The survey, Brand Intelligence: Law, was conducted between 2 December 2025 and 11 January 2026 and asked private practice lawyers if they use AI for work and whether they have been given a clear policy surrounding its use.
The size of the law firm often determines the degree of AI use and the strength of its policies. Overall, just over half of Australian firms have clear AI policies in place that outline both which tools are permitted and when, while another 16 per cent have vague guidelines.
Large practices (more than 200 employees) performed best in formal governance, with around three in four firms providing clear parameters and a mere 1 per cent claiming no current AI guidelines. Accordingly, 51 per cent of mid-size firms (51–200 employees) reported firm-wide AI policies, 38 per cent for boutique firms (11–50 employees), and 25 per cent for small practices (1–10 employees).
While larger firms leaned towards vetted platforms, smaller firms often allowed for combining tools and greater choice, including one of non-adoption. About a third of legal professionals reported not using AI, and about 11 per cent admitted to using AI tools without direct firm approval. This would potentially allow for a more targeted but also riskier use.
The overall use of AI-integrated software and standalone AI tools was fairly even, 37 per cent to 31 per cent. While it appeared to trend with the size of the firm, there were a few exceptions. BigLaw firms favoured AI-integrated legal tech, trending about 10 per cent higher than separate AI tools, and boutique-level firms also fell into this pattern, being more than twice as likely to use already-integrated AI software.
However, mid-size firms bucked the tradition, using more standalone AI tools, around 37 per cent of total participating professionals. As is expected, small firms had the largest portion of non-AI users, 32 per cent.
Above all else, these numbers demonstrate the exponential growth of AI capability and its almost instantaneous transition from experimental to everyday use. It’s clear that more resources and manpower correspond to stronger frameworks and more polished guidelines, giving lawyers in larger firms a stronger support system.
However, perhaps the more haphazard, open-minded approach will give smaller firms an edge as they solidify where they stand in the new age of AI.
Looking to the future, appropriate self-regulation will be crucial, no matter the firm size.
Agile Market Intelligence director Michael Johnson concluded that “AI governance isn’t optional anymore”, adding that “the risk isn’t just in compliance, but in the informal guidance that could become a liability when something goes wrong”.
