2025 UK Midsize Law Firm Priorities: Talent, Tech, and Change
Midsize law firms in the UK find themselves at a critical inflection point. With mounting economic pressures, increasing client expectations, and an evolving regulatory landscape, firm leaders must carefully assess their priorities and investment strategies to remain competitive.
To understand how midsize firms are responding to these challenges, Actionstep, in collaboration with LPM, conducted the 2025 UK Midsize Law Firm Priorities Report. This research surveyed 60 senior leaders from firms ranging from 20 to 500 employees, uncovering key trends in technology adoption, operational efficiencies, and strategic priorities.
More than just a snapshot of industry trends, this new report serves as a benchmarking tool, offering law firm leaders the ability to compare their strategies with those of their peers. Whether identifying areas for improvement or reinforcing current best practices, these insights provide the necessary data to make informed decisions with confidence.
Below, we explore some of the report’s most critical findings and what they mean for the future of midsize law firms across the UK.
Key finding: Talent acquisition and client growth have dual focus for 2025
Midsize law firm leaders have identified talent acquisition and client growth as their top strategic priorities for the year ahead:
- 78% cite securing top talent as a primary concern.
- 60% prioritise acquiring new clients to drive revenue growth.
Despite these goals, recruitment and retention remain a persistent challenge, with 69% of firms struggling to attract and keep skilled law firm professionals.
While new client acquisition is a primary objective, only 26% of firms have actually prioritised client satisfaction as a core growth strategy. This suggests a potential blind spot. Without an emphasis on client experience, firms risk losing business to competitors who offer more seamless and personalised legal services.
To maintain a competitive edge, midsize law firms must balance talent acquisition, technology investment, and client service enhancement.
Key finding: The digital experience is a critical yet overlooked opportunity
The legal industry has been slow to adopt digital client service tools, and midsize firms are no exception. While 35% of law firm leaders believe their technology is insufficient to fully support client needs, key digital tools remain underutilised:
- 38% of firms provide client portals for case updates and document access.
- 31% enable document collaboration for streamlined communication.
- Only 12% offer online appointment booking, a feature now standard in many industries.
As client expectations evolve, firms must consider how digital transformation can enhance efficiency and service delivery. Features such as self-service portals, automated status updates, and AI-driven client interactions can help firms differentiate themselves while improving operational efficiency. The firms that embrace digital client experiences will stand out in an increasingly tech-driven legal landscape.
Key finding: Automation gains traction, but AI adoption remains limited
Efficiency remains a top priority for midsize law firms, with 74% of firm leaders actively seeking new technology to optimise how work gets completed. However, while 54% of firms have adopted process automation, the integration of AI tools within these firms remains limited:
- Only 26% say their firms are experimenting with generative AI (GenAI).
- 46% cite cost as a significant barrier to AI adoption.
While automation is increasingly used to manage administrative tasks and streamline case management, GenAI applications, such as document review, legal research, and automated client communication, are still in their early stages. Many firms remain hesitant and are taking a wait and see approach due to concerns over compliance, data security, and the unpredictability of AI-generated outputs.
So, if your firm is considering AI adoption, it must be approached strategically, balancing efficiency gains with necessary human oversight to bring your team onboard successfully.
Key finding: Are firms too confident with risk and compliance management?
Regulatory compliance is a high-stakes issue for law firms around the world, yet many midsize firms in the UK may be overestimating their preparedness. While 96% of law firm leaders express confidence in their firm’s compliance with anti-money laundering (AML) regulations and 85% feel prepared for cybersecurity threats, the data reveals significant gaps:
- 54% struggle to stay up to date with evolving regulatory requirements.
- 47% identify staff training as a major challenge.
- 72% acknowledge human error as their biggest security risk.
As compliance requirements continue to evolve, and cyber threats become more advanced, firms must ensure they have robust risk management strategies in place, including the implementation of automation tools, staff training programs, and proactive cybersecurity measures to safeguard client data and maintain regulatory integrity.
Actionstep’s top recommendations for UK midsize law firms
To drive success in 2025, UK midsize law firm leaders should focus on five key areas. First, midsize firms must leverage technology to stay competitive by implementing tools that enhance efficiency, support diverse work needs, and improve client service. Prioritising digital client experiences, such as online portals, automated processes, and self-service tools, will be essential for meeting evolving client expectations.
Next, thoughtful adoption of AI and automation will help firms balance efficiency gains with necessary human oversight to ensure compliance and accuracy. Firms that proactively test and implement new technologies will gain a stronger competitive edge, overcoming resistance to change. Additionally, maintaining a strong focus on risk management, through the integration of technology, compliance strategies, and staff training, will be critical to staying ahead of security and regulatory challenges.
As 2025 unfolds, midsize law firms in the UK face a landscape filled with both challenges and opportunities. By focusing on strategic technology adoption, client experience improvements, and operational efficiencies, firms can position themselves for long-term success. The legal sector is evolving rapidly, and those who embrace innovation and adaptability will be best equipped to thrive.
Explore the full report
For a deeper dive into the data and insights shaping midsize law firm strategies in the UK, download the full 2025 UK Midsize Law Firm Priorities Report for free.
