How these law firm trends impact small law firms

Here are some of the top law firm trends of 2023 and how they impact small and mid-sized firms:

Adopting AI Tools to Save Time

Artificial Intelligence tools like ChatGPT have made headlines in recent months, leaving many people wondering how AI might impact the future of work. For law firms in 2023, AI means finding and sorting information faster and saving time. In its law firm industry report, JD Supra wrote:

“Reviewing more data sets in less time and organizing large volumes of data among the key reasons for adopting AI-driven eDiscovery technology.”

Fox Rothschild cautions that some of the public domain AI tools don’t meet the requirements of the legal industry, noting:

“Popular AI applications such as ChatGPT, Microsoft Bing and Google’s Bard are for the most part inappropriate for use in legal practice. Private, legally focused tools including Casetext’s Co-Counsel and Henchman’s contract drafting tool are far better suited because they utilize known data sources, protect confidentiality and focus on security.”

That writer expands on the ethics of the use of AI by law firms, and he also boldly asserts that lawyers who don’t adopt some AI will “be replaced by those who do.”

For small law firms: AI could mean the ability to free up time and expand offerings to more clients or new practice areas. Time will tell how small firms will apply these tools.

Use of Technology to Streamline

Aside from AI, law firms of all sizes continue to invest in technology to streamline client service, document processing and more.

In its overview of law firm trends, Wolters Kluwer reported that:

“…64% of professionals in corporate legal and 63% in law firms plan to increase their investment in software to support legal work in the next 12 months.” 

Law firms, according to Clio, apply technology to improve business at every level of law firm operations. From marketing and websites to managing remote workers, law firms use technology at almost every client touchpoint.

For small law firms: Small law firms need to operate strategically to compete with larger firms. Technology can help small firms deliver top-notch service with limited hands-on hours. However, small firms need to carefully choose the tech tools that will deliver the most bang of their buck.

Anticipating Client Needs

The firm-client relationship continues to evolve, and law firm clients expect more than ever.

As Reuters reports, though, that doesn’t necessarily mean more hours or hustle:

“Clients of law firms, faced with their own array of modern-day business and economic challenges, are ever-more demanding. And they’re not just looking for ‘cheaper, better, faster’ — although these remain fundamental drivers for most. They’re seeking more nuanced strategic or industry advice and relationship support that may not necessarily fit neatly within the comfort zone of a traditional transaction-oriented firm/client relationship.”

Law firms skilled at delivering something more than cut-and-dried transactions for clients will fare better in the new landscape.

For small law firms: Client expectations around quality and nuance should be music to the ears of independent lawyers and small firms. The ability to provide personal service and develop a long-term relationship is where many small law firms excel.

Continuing Hybrid Work

Finally, it’s clear that hybrid work is here to stay for lawyers and law firms.

The vast majority of lawyers work from home at least part time:

  • 72% of law firm lawyers expect to work remotely from home all or part of the time; 28% plan to work in the office full-time, either as required by their firm (19%), or because they choose to (9%).

For law firms seeking the benefits of both a professional office environment and the flexibility part-time remote work, coworking and shared office settings provide a great alternative to traditional office leases.

This trend report shows that niche coworking spaces in particular continue to meet the needs of the market:

“The coworking niche movement has really come into its own in 2022. These spaces are designed to serve a specific demographic with amenities and services tailored just for them.

Niche spaces present an opportunity for operators to differentiate themselves from competitors in their area, while serving as a place for like-minded individuals to come together and learn from one another.”

Niche spaces like LawBank allow professionals in the same industry to create a sense of professionalism and community while building their small firms, and these spaces foster the hybrid work schedule that many professionals want.

For small law firms: Small means nimble and flexible. Growing a small firm is easier and less risky when following a shared office and hybrid model.

Reach out to us to learn more about how a shared office setting can help your small law firm grow. If you have extra space in your existing office, we can also help.