The 2025 Agile Market Intelligence Legal Tech Review reveals how legal professionals across Australia are engaging with legal technology. Projected changes in tech spend reflect a generally positive outlook across all firm sizes to modernise operations and improve client service. For firms further along in their buying journeys, cost-benefit analyses ranks as the top criteria for evaluation.
Key stats you need to know
- 58% of firms plan to increase their legal tech spending in the next 12 months.
- 74% of firms rely on partners or senior leadership for strategic direction in tech.
- 78% of evaluation of legal tech purchase hinges on cost-benefit analyses.
Legal Tech spending on the rise across the sector
- Across different organisation sizes, over half of firms project an increase in tech spend for the 12 months, averaging out to 58% expecting increased spending, 10% of which anticipate significant (20% or greater) increase in their budgets.
- The larger the firm, the higher the investment intent: 66% of Big Law anticipate growth in their tech budgets, with 14% projecting significant growth.
Projected spend scales with firm size, but the uplift across the market projected increase across the market points to a shared shift in mindset. Whether it’s automation, legal research or practice management, firms are increasingly viewing technology as essential infrastructure.
"Firms aren’t short on intent. The next phase hinges on execution. Vendors who make onboarding frictionless, prove outcomes fast, and speak the language of legal work will be the ones who break through." - Michael Johnson, Director at Agile Market Intelligence
Senior leadership provides strategic direction for tech solution
- When considering tech solutions to adopt, 74% of legal professionals said partners or senior leadership provides the direction.
- Input from staff end-users (46%) and IT teams (37%) also play a meaningful role, while external consultants are least likely to be involved (14%).
Despite increasing investment in legal tech, decision-making power remains concentrated at the top. Senior leadership plays a dominant role during the consultation stage, with nearly three-quarters of firms reporting that partners provide strategic lead when reviewing tech options.
There are signs of broader collaboration, with feedback from staff who actually use the tools ranks second, followed by input from IT teams who can evaluate compatibility, security and other aspects of implementation. More structured advisory groups such as tech committees or external consultants remain peripheral.
“Leaders are still steering the ship, but firms that build in user and IT feedback early tend to adopt with more confidence and fewer regrets. Consultation isn’t just a step, it’s a signal of implementation readiness.” - Michael Johnson
Cost still rules the decision stage, but demos are nearly as influential
- 78% of respondents cite cost-benefit analysis as the most widely used evaluation tool.
- Demonstrations are nearly as common, with 74% of firms looking to test functionality with vendors.
- Just under half (47%) conduct security or compliance checks via IT or legal teams.
Further along the buying journey, firms turn to traditional cost-benefit analysis, but product demonstrations are emerging as a close second. The near parity between cost analyses and live demonstrations indicates that law firms need to see both a clear return on investment and an actual demonstration on how legal tech platforms would benefit their practice. This approach aligns with an industry that is cautious on spend, but serious about platform performance.
Pilot programs and case studies are referenced less, suggesting that firms are deprioritising third-party narratives, in favour of vendor-led validation. First-hand assessment is overtaking anecdotal trust.
"Legal teams want confidence that a solution will deliver in practice, not just on paper. Demonstrations are giving buyers that clarity without the overhead of a full pilot," - Michael Johnson
About the research
The 2025 Agile Market Intelligence Legal Tech Review is based on survey responses collected from 1,250 legal professionals across Australia. The research was conducted between 4 February and 5 May 2025. The sample includes 914 professionals working in private practice and 269 in in-house roles, spanning a broad mix of firm sizes, locations and practice areas.
A public version of the report will be made available to participants and industry in early August 2025. For more information about the full report, including the competitive analysis tool for technology providers, please contact jarrad.nash@agilemi.com.au.
