The Science Behind Smarter Law: Clio's 2025 Legal Trends Report Reveals How Technology Is Rewiring the Way Lawyers Work

Now in its tenth year, Clio's Legal Trends Report shows the measurable impact of legal technology on lawyer performance, revealing how AI is driving a more sustainable future for the profession

BOSTON, Oct. 16, 2025 /PRNewswire/ - Clio, the global leader in legal AI technology, today released the tenth edition of its Legal Trends Report, featuring a first-of-its-kind cognitive study that offers an unprecedented look at how technology affects the way lawyers think and work. Building on a decade of longitudinal research, Clio has developed the industry's most comprehensive dataset on legal practice and emerging trends, providing unmatched insight into how law firms can succeed and grow in an evolving profession.

In its groundbreaking new research, Clio worked with Neuro-Insight, one of the world's leading neuroanalytics companies, to conduct an industry-first neurological study of legal professionals. Using Neuro-Insight's patented Steady State Topography (SST™), Clio analyzed electrical brain activity in 63 legal professionals as they completed a set of time work tasks related to client intake, matter creation, reporting, and document summarization. Participants completed each task using traditional tools like spreadsheets and PDF documentation as a control, and with Clio.

The study measured total cognitive load based on neurological indicators such as emotional strain, active mental focus, and memory demand. The findings revealed substantial findings that demonstrate how technology can greatly improve firm performance while reducing the mental burden on legal professionals:

• Emotional strain fell by 16 percent during client intake, with 93 percent of emotions indicating excitement and happiness when using Clio
• Overall cognitive load dropped by 25 percent when using Clio, meaning participants used less mental energy to complete their work
• Memory demand decreased by 11 percent when using Clio's AI for document review, reducing the effort required in remembering specific details to accomplish the task; most importantly, participants were twice as likely to provide the correct response when using Clio's AI Active focus declined 72 percent for calculating billables and 25 percent for creating new matters with Clio, demonstrating how mental effort can be reduced in routine administrative work

"The data confirms that AI and legal technology are advancing the profession in measurable ways," said Joshua Lenon, Lawyer in Residence at Clio. "We are seeing clear evidence that when lawyers use the right tools, they experience lower cognitive strain, higher accuracy, and stronger engagement in their work. These are meaningful gains that point to a more sustainable and rewarding future for legal professionals everywhere."

AI adoption is driving firm growth

While the neurological study highlights the benefits for individual lawyers, the broader data reveals how those same technologies are transforming firm-wide success.

The report shows that AI has quickly become a defining feature of law firm growth and competitiveness. Firms that are moving fastest with adoption are widening the gap, not just through efficiency but by rethinking how they deliver value to clients. Early adopters are adjusting pricing strategies, exploring new revenue models, and positioning themselves ahead of the curve as the industry shifts away from the billable hour.

• Firms with wide AI adoption are nearly 3x more likely to report revenue growth compared to firms that have not adopted AI
• 77% of firms that increased revenue with AI attributed it to improved operations such as document generation, workflow automation, and client communication
• Growing firms are 2x more likely to leverage automation than stable firms, and nearly 3x more likely than shrinking firms

"Law firms are facing a once-in-a-generation opportunity to redefine how they work," said Jack Newton, CEO and Founder of Clio. "Firms stuck in old habits will stall, while those betting on AI and client-first innovation will define the next era. The age of billable hours and hiring sprees is fading. The firms that thrive will be the ones building sustainable, technology-driven practices."

Clients are embracing AI and raising expectations

The rise of AI is also changing how clients approach legal services. More consumers are beginning their legal journey with online research or AI tools, and many arrive with clearer expectations and more information in hand. This creates both opportunities and risks: firms that embrace transparency and digital-first strategies will gain trust, while those that lag may lose visibility in an increasingly competitive market.

• More than half of consumers have used or would consider using AI to answer a legal question
• Of those who used AI, 28% were directed to contact a lawyer, creating a direct bridge between consumer AI use and professional services
• A growing majority of consumers say they would look for their next lawyer online, increasing the importance of strong digital presence and client-facing technology

Technology adoption continues to predict long-term success

The research reinforces that firm growth is closely tied to the depth of technology adoption across every part of a practice. Smaller firms achieve growth by improving individual productivity, while larger firms scale efficiently through systems and teams. In both cases, legal technology remains the common factor that enables firms to compete effectively and capture new opportunities.

Key findings include:

• Growing law firms use 12 percent more Clio services than firms that are stagnant or shrinking
• They are 18 percent more likely to adopt key workflows such as electronic payments, online scheduling, and automated communications
• Firms that invest consistently in technology sustain growth over five years, while firms with flat utilization rates see declining revenue per lawyer

The Legal Trends Report shows that the next competitive advantage lies in adoption. Growing firms are empowering lawyers to focus on their craft by reducing administrative work, lowering cognitive strain, and leveraging technology that expands their capacity. Wide adopters of AI are already achieving stronger revenues, greater efficiency, and improved well-being, proving that the future of law belongs to firms that embrace innovation and build sustainable, technology-driven practices.

A decade of data and a new frontier of insight

Now in its tenth year, Clio's Legal Trends Report provides the industry's most comprehensive analysis of how technology, data, and human behavior are transforming the practice of law. The addition of cognitive data marks a major step forward, giving legal professionals a deeper understanding of how technology not only drives business outcomes but also enhances focus, well-being, and the sustainability of their work.

To read the full report and explore the findings, visit clio.com/ltr.

Methodology

The Legal Trends Report draws on aggregated and anonymized data from tens of thousands of legal professionals using Clio across the United States. Strict privacy standards are applied, with no personally identifiable information or client data included. This year's edition also incorporates the first cognitive study of legal technology's impact, measuring how Clio affects cognitive load and task performance through controlled experiments with legal professionals.

About Clio

Clio is the global leader in legal AI technology, empowering legal professionals and law firms of every size to work smarter, faster, and more securely. Purpose-built for the legal industry, Clio's AI platform streamlines workflows, improves decision-making, and combines powerful technology with industry-leading security. Trusted by hundreds of thousands of legal professionals in more than 130 countries, and approved by over 100 bar associations and law societies worldwide, Clio sets the standard for innovation and client success across the legal profession. Backed by world-class investors and a mission to transform the legal experience for all, Clio is defining the future of legal work through AI. Learn more at www.clio.com.

SOURCE Clio