Actionstep Releases 2025 US Midsize Law Firm Priorities Report
Findings focused on driving firm growth, harnessing technology, and exceeding client expectations.
Denver, Colorado – April 23, 2025 – Actionstep, a leading provider of cloud-based law firm management software supporting nearly 5,000 law firms globally, including approximately 2,000 in North America, today published the 2025 US Midsize Law Firm Priorities Report (“Report”). The third edition features findings and analysis of the business priorities, resource challenges, and technology realities and trends of US midsize law firms. The 2025 findings highlight the unique position of midsize law firms, the focus on client satisfaction, the importance of technology investment internally and among clients, the challenges posed by disconnected tools, and the growing adoption of AI.
This comprehensive report, conducted in partnership with Dimensional Research, provides essential insights into the core business priorities, operational challenges, and technology strategies shaping midsize law firms in 2025. A total of 264 qualified law firm professionals working at midsize firms in the United States completed the survey, including legal staff (lawyers and paralegals) as well as administrative support roles (practice managers, firm administrators, IT, finance, operations, HR, and other support functions).
“Our latest US report surfaces the distinct strengths and challenges faced by midsize law firms, echoing results from our research in the UK and Australia,” said Early Stephens, Global CEO of Actionstep.
“At Actionstep, we are committed to improving the business of law. Therefore, our research aims to equip these firms with the technology, strategic support, and actionable insights they need to succeed and grow in an evolving market by providing actionable benchmarking data to guide strategic decisions. By diving deep into the realities of practice management and interconnected technology, we’re helping firms understand not just where they stand, but how they can move forward with confidence.”
2025 Report key findings include:
- Unique Positioning: Midsize law firms, defined as those with 50-250 employees, occupy a distinct space in the legal market. They balance the agility and close client relationships of smaller firms with the resources of larger ones, allowing them to effectively differentiate themselves, with 42% stating their ability to adapt quickly to market changes is their top differentiator.
- Top Midsize Firm Priorities: Improving client satisfaction (43%) and managing the cost of doing business (41%) are the top priorities for driving revenue in 2025. 63% of midsize law firms have documented client service expectations and have a plan in place, a number that has grown by 33% since 2023.
- Technology Investment: 59% of midsize law firms are “very motivated” to invest in technology in 2025 with 88% agreeing that technology can help improve client relationships.
- Client Service: 63% of midsize law firms have identified specific areas for improving client service and are actively working on them.
- Interconnected Technology: On average, law firm professionals use 6.6 different tools to manage a client’s matter, while acknowledging that disconnected tools create challenges, including creating multiple records of client and matter information (45%) and inefficient time management (44%). Almost all (99.6%) law firm professionals see the benefits of using one platform to manage their practice, matters, and clients, with improved efficiency (47%), cited as the most frequently reported advantage.
- AI Adoption: Midsize law firm professionals are increasingly experimenting with AI (30%), with 36% using it for legal research, 33% for document drafting, and 33% for workflow and task automation. Younger generations prefer AI capabilities to be added to their existing toolset.
Actionstep identified key areas for midsize law firm management teams to address based on key Report findings detailed above:
Midsize law firms occupy a unique and advantageous position: The 2025 Report confirms that midsize firms recognize their distinct market position and advantages in building close client relationships, but the challenge lies in leveraging their strengths while remaining competitive against firms with larger budgets or more flexibility. However, midsize firms must also be intentional about their growth strategies, ensuring they invest in the right technology and operational infrastructure to remain competitive.
Connecting talent retention with technology investment: 41% of midsize firms view talent retention as a strength, with smaller midsize firms (50-150 employees) often retaining talent more effectively due to strong company culture, while larger midsize firms (150-250 employees) struggle with career progression clarity and increased administrative demands. While there are ongoing essentials to invest in like associate development, clear career paths, competitive pay, and flexible work arrangements, midsize firms often overlook the role efficiency gains from technology has in positively impacting the employee experience.
Cost management and client satisfaction must work in tandem: There is a growing emphasis on operational efficiency as firms navigate higher overhead costs, inflation, and shifting client demands for transparent, value-based pricing. While midsize firms have traditionally prioritized client service (and still do), market dynamics are shifting, and law firm leaders need to recognize that delivering exceptional service must be balanced.
Technology adoption is a make-or-break factor for midsize firms: Firms that fully embrace technology are not only more efficient but also more profitable and better positioned to attract top talent and clients. However, a clear divide exists with 34% of midsize firms seeing technology as an advantage yet 21% still struggling with adoption. For midsize firms, this means moving beyond legacy systems and fragmented tech stacks, toward automation-driven efficiencies, cloud-based collaboration, and a fully integrated digital ecosystem.
Midsize law firms need to reconsider their approach to investments and change management: For midsize law firms, success isn’t just about choosing the right technology, it’s about making the right strategic investments and ensuring firm-wide adoption. Leadership, including managing partners, practice managers, and IT leaders, must take a proactive role in influencing decisions and driving change management to ensure investments are implemented successfully and deliver real business value.
CEO Stephens added: “Midsize law firms that take a proactive approach to defining and amplifying their unique value, whether through specialized practice areas, superior client experiences, strategic use of legal technology, or operational excellence, are best positioned to stand out and lead in an increasingly competitive and dynamic market.”
Download the complete Report here.
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About Actionstep
Actionstep is the leading law firm management platform for midsize firms around the world. Our practice management and legal accounting platforms are built to adapt to a firm’s unique strengths and goals, empowering firms to modernize and build a firm advantage in the legal marketplace. Connected features like client intake, matter management, document management and automation, time tracking, billing, legal accounting, and business reporting, equip nearly 5,000 law firms globally to work more efficiently, delight clients, increase profitability, and confidently embrace growth. Find out how to build your firm’s advantage and request a demo at www.actionstep.com.
For more information, please contact:
Jobst Elster, Envision Agency
+1 850 459 4947
