The 2025 Agile Market Intelligence Legal Tech Review reveals how legal professionals across Australia are engaging with legal technology. While many firms continue to operate on modest tech budgets and show limited adoption activity, there are signs of increased investment intent, particularly from mid-sized and large firms looking to modernise operations and improve client service.
Key stats you need to know
- 49% of sole traders spend less than $5,000 annually on legal technology.
- 53% of legal organisations have not adopted any new legal tech in over five years.
- 10% of firms plan to significantly increase their legal tech spending in the next 12 months.
Legal tech spend is starting to scale
- Nearly half of sole traders (49%) reported spending under $5,000 per year on legal technology. Just 11% of all legal organisations reported spending more than $100,000 annually. One in three large firms (33%) with over 1,000 employees reported spending over $500,000 on legal technology.
- 58% of all firms said they plan to moderately or significantly increase their legal tech investment over the next year. 10% of firms are preparing for a significant increase in spending of 20% or more.
Legal tech spending is heavily concentrated at the ends of the market. Smaller firms remain cost-conscious, while larger organisations are scaling their investment. The most dynamic segment appears to be mid-sized firms, which are increasingly earmarking budget for tech as part of broader operational upgrades. Platform consolidation and risk management are likely key drivers behind their plans to scale.
“The intent to invest is there. The next 12 to 24 months will be shaped by whether tech vendors can convert that intent into action through better onboarding, measurable outcomes and practical use cases.” - Michael Johnson, Director at Agile Market Intelligence
Discovery is relationship-driven
- 58% of legal professionals said they discover new legal tech through peer recommendations and informal referrals.
- 42% reported conducting independent online research to find new technology solutions. 39% said they explore new platforms while attending legal or tech-specific events and conferences.
- Just 19% of respondents indicated they discovered tech through direct vendor outreach or sales calls. Only 10% said they rely on social media platforms such as LinkedIn for discovering legal tech tools.
The discovery process for legal tech remains informal and highly relational. Trusted recommendations and first-hand exposure at events carry more influence than traditional marketing tactics. This implies that vendors need to be embedded in legal communities and leverage their existing user base to generate referrals and case studies that resonate.
“Legal buyers are not easily sold to. If you are not embedded in their networks or conversations, you are invisible. Social proof is not optional, it is a requirement.” - Michael Johnson
Adoption is slow but capability-led
- The median number of legal tech platforms in use across firms is currently two.
- 53% of legal organisations reported that they have not adopted any new legal technology in the past five years. Only 8% of respondents said they adopted a new legal tech solution within the last six months.
- The most common driver of adoption is the introduction of a new capability that previously did not exist within the firm. Some adoption also stems from the replacement of legacy platforms with more modern alternatives.
Legal tech adoption is infrequent and tends to be strategic rather than iterative. Firms are more likely to adopt when the solution addresses a specific gap in their workflow or enables a new capability they could not previously support. This underscores the importance of differentiation and solving substantive business problems, not just marginal process improvements.
“The bar for adoption is high. Legal teams will only invest when the tech unlocks something genuinely new. Faster alone is not enough. Vendors need to solve hard problems, not just make existing workflows 10 percent better.” - 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.
