Clio Report Uncovers Data Lock-In Crisis Costing Law Firms Thousands

A landmark study commissioned by Clio, the global leader in legal AI technology, has uncovered a troubling pattern of “data lock-in” threatening the independence of Australian law firms.

According to The State of Legal Tech 2025 Data Insights report, law firms are being charged excessive fees, facing long delays and struggling to retrieve their own client files when they try to change practice management software providers or renegotiate contracts.

Data Held Hostage

This research, commissioned by Clio and conducted by YouGov, paints a stark picture of the everyday hurdles faced by legal practices:

• 71% of lawyers surveyed said their firm had experienced providers withholding or delaying access to firm data.

• 80% reported paying $10,000 or more to extract their own client files and case documents, with the average fee reaching $24,861.

• Data retrieval takes roughly four weeks on average, with 85% facing delays of two weeks or longer.

• Only 39% of lawyers were confident their firm’s documents could be easily exported to another provider.

While 84% of respondents said they understood the concept of data portability, 52% were completely confident their firm owned its stored case data. However, nearly half admitted they would need to review their contracts to confirm ownership rights.

Caralee Fontenele, Founder and Director at Scalable Law, a now Clio user faced these exact issues when switching from her legacy platform after 17 years. “This isn’t just about inconvenience—it’s about control. When we tried to move to a more modern platform, we were hit with unexpected fees and told it would take weeks to get our own files back. It felt like our documents were being held ransom.”

The Hidden Cost of Vendor Lock-In

The financial implications are staggering. With more than 23, 700 legal service businesses operating across Australia, Clio’s research suggests that if just 10% of firms incur average data extraction costs each year, the industry could be losing nearly $59 million annually.

Add to that the lost productivity and client service interruptions caused by lengthy data access delays, and the total economic impact likely stretches well into the hundreds of millions annually.

“These findings highlight a serious concern for the Australian legal industry,” said Jack Newton, CEO and Founder of Clio. “Many firms are encountering significant costs and operational hurdles when trying to access data that rightfully belongs to them. This raises important questions about fairness, transparency, and the need for stronger data portability standards in legal technology.”

The Call for Ethical Data Standards

Clio, which offers free and unlimited data exports, zero exit fees for switching providers, open API access, and 30-day data retention after account closure, is urging the industry to establish stronger ethical data practices.

The company’s recommendations include:

• Mandatory data portability for all legal tech providers

• Transparent data extraction fees

• Explicit contract clauses affirming firm data ownership rights

“We believe law firms should never be held hostage by their technology providers,” said Denise Farmer, General Manager, APAC at Clio. “Data portability isn’t a luxury—it’s a fundamental right. Our clients’ success depends on having full, unrestricted access to their own data.”

This report just scratches the surface, with the full report of findings to be made available soon. To be the first to read it, sign up here.

To speak to a Clio specialist, you can book your free, no obligation demo today here.

About the Study

The State of Legal Tech 2025 Data Insights was conducted by YouGov in July 2025, surveying 1,005 practising lawyers across Australia. Results are accurate to within ±3.1% at the 95% confidence level. Full methodology and additional findings are available upon request.