Written by:
Grant Yuill
Head of Marketing & Customer Engagement
Small law firms in the UK face significant obstacles when it comes to the implementation of legal technology. Although many people are aware of the advantages that tools like software for managing legal cases can provide, there are still obstacles that prevent them from utilising them. High costs, uncertainty regarding which software to choose, and concerns regarding the possibility of investing in systems that may become obsolete or non-compliant are among the most significant challenges, as indicated by research conducted by the Solicitors Regulation Authority (SRA).
Why Legal Case Management Software Adoption Is Vital for Small Law Firms in 2025: Cloud-Based Practice Management for Better Client Satisfaction in the Legal Industry
Thinks Insight & Strategy was assigned by the SRA to investigate how small firms (defined as those with fewer than four partners and a turnover of less than £400,000) are utilising legal technology. According to the results of the study, even though smaller businesses have comparable objectives to those of larger businesses, such as increasing their efficiency and satisfying the growing expectations of their clients, they have a more difficult time choosing the right practice management software due to their limited time, knowledge, and confidence.
What Methods Are Currently Being Used by Small Firms?
Digital tools, such as cloud-based accounting systems, communication platforms, and various types of case management software, including legal case management software, have already been adopted by a significant number of smaller law firms. Some people are starting to investigate artificial intelligence technology; approximately 14% of them use AI automation, 12% have adopted generative AI, and another 25% are considering using GenAI soon. Despite this growing interest, many smaller businesses, particularly solo and small firms, continue to find legal technology to be overwhelming. This is especially true given that a significant portion of it appears to have been designed with larger businesses in mind.
What’s Holding Small Firms Back?
The process of incorporating new technology presents a number of obstacles for smaller law firms. The most significant challenges consisted of limited budgets, a lack of technical knowledge or support, and uncertainty regarding which tools are the most effective. There is also a lot of concern among many people about investing in software that they are not sure will fulfil their needs or satisfy the rules and regulations. Added to the hesitation are worries regarding compliance and the protection of data.
While only 21% of firms reported that a technology provider had reached out to them directly, the majority of businesses end up relying on the advice of their peers or conducting their own research. Nevertheless, in spite of these worries, a great number of small firms are aware that failing to keep up with technological advancements could have a detrimental effect on their customer satisfaction and growth.
By what means would small law firms be able to embrace technology?
Participants in the research suggested a few practical solutions with the goal of making it simpler for smaller law firms to adopt different technologies. As part of their presentation, they emphasised the importance of providing clear and objective guidance on how to choose the right legal case management software, as well as providing real-life examples or case studies from firms that are comparable to their own and have successfully made the transition.
There are also opportunities for networking, such as industry events or peer meetups, that could assist firms in gaining knowledge about their choices. Access to free trial versions of software and flexible pricing plans that are tailored to the budgets of small businesses would make it easier to test out tools before making a commitment to purchase them. In addition, participants expressed a desire for increased support from the SRA, particularly regarding the compliant use of artificial intelligence and the safe utilisation of AI. In addition, many people were in favour of the concept of a regulatory sandbox, which would be a safe environment where firms could experiment with new technologies without the risk of violating any regulations.
What does the SRA plan to do?
To better assist small law firms, the SRA plans to maintain its Innovate program and increase the number of resources that are accessible through its website. It recognises how important it is to assist these firms in adopting technology, not only to improve the way in which legal services are provided, but also to improve the level of satisfaction experienced by clients and to contribute to the overall growth of the legal industry.
Final Thoughts
Technology adoption is no longer something that small law firms can afford to delay. Enhancing workflow, accelerating billing, and increasing client satisfaction are the possible results of using the appropriate legal practice management software. Although there are challenges associated with cost and uncertainty, there is growing support from the SRA and technology providers.
The time has come to streamline your legal practice, investigate your options for AI adoption, and maintain your competitive edge in the ever-evolving legal sector. With the right tools, small firms have the potential to thrive in 2025 and beyond.
Take the First Step Toward Modernising Your Law Firm
Are you ready to prepare your small law firm for the future? You can see how our cloud-based legal practice management software can revolutionise the way you work by scheduling a free personalised demo with Denovo today. The CaseLoad platform from Denovo is designed to meet the demands of small businesses, regardless of where they are located or how they conduct their business. Its features include streamlining day-to-day tasks, ensuring compliance, and improving customer service.
Work smarter. Serve better. Lead with confidence using Denovo CaseLoad.
