The global legal technology market was valued at US$27 billion in 2024, with projections suggesting that by 2034 it will have reached US$65 billion. Key drivers behind this rapid acceleration include developments in Generative AI (GenAI) and the adoption of cloud technologies, which deliver a variety of benefits, such as scalability, flexibility and cost-effectiveness compared with existing solutions.
Despite this explosive growth, many firms remain slow to modernise. According to a LexisNexis survey of over 800 legal professionals in the UK, 70% consider their firm slow or very slow to implement new technology, and 67% view their firm as slow to respond to change.
A similar situation exists in Australia; details revealed by the leading Australian market research company Agile Market Intelligence in its 2025 Legal Tech Review indicate that 53% of legal firms in the country have not adopted any new legal technology in the past five years. Even when firms express intent to invest, with 10% planning a significant spending increase of 20% or more over the next year, few have translated that intent into concrete action.
This general reluctance puts non-adopters at significant risk, with firms embracing AI, automation and cloud infrastructures seeing substantial gains in productivity, efficiency and client satisfaction. Thomson Reuters’ Tech, AI and the Law 2024 report, which surveyed opinion among 869 Australian legal professionals, indicates 32% want a GenAI legal system to support their work. There is a recognition that lagging firms face the prospect of being left behind and becoming obsolete.
Consequences of Under‑Investment
Ignoring legal technology exposes firms to more than just slower turnaround times. Evidence points towards a clear divergence between firms embracing technology and those that don’t, suggesting mid-sized and large Australian firms are deriving 28% higher profit per partner over two years by embracing innovation. Those failing to adapt, however, suffer a revenue decline of approximately 9% over the same period.
In addition, leading domestic and international firms, such as Gilbert + Tobin, Minter Ellison, Ashurst and Herbert Smith Freehills, are integrating GenAI and cloud-based tools to handle document discovery, contract analysis, legal research and drafting. Despite this trend, all insist that lawyers remain at the centre of decision-making, ensuring process rigour and ethical standards. These tools represent part of a new AI-driven ecosystem which exists to support the efforts of legal professionals, not to replace them.
Many firms face increasing pressure to grow whilst saving costs and maintaining service quality. There are risks, so regulatory vigilance remains high, particularly regarding confidentiality and AI hallucination, reinforcing the perspective that adoption must be responsible and secure.
The Case for Legal Tech Adoption
The efficiency gains and cost savings available can be substantial; AI-powered contract intelligence and automation can reduce review time by up to 80%, releasing lawyers from routine, repetitive tasks so they can focus on higher-value strategic work and client engagement. For instance, tools applied to due diligence or billing review can recover hundreds of hours per lawyer per year and generate new billable capacity or margin.
In an increasingly competitive market, the needs of clients evolve, and firms must offer the agility and cost transparency they expect. Firms seen as slow adopters risk losing business to more efficient, innovative competitors or alternative legal service providers (ALSPs) that offer faster, technology-enabled models under subscription or fixed‑fee arrangements. Thomson Reuters estimated the value of the ALSP market at US$28.5 billion in 2023, with continued growth expected as providers expand their range of services to law firms and in-house legal departments.
In-house legal departments that harness legal tech can deliver significant strategic value and growth. Australia’s top-performing legal departments are leveraging legal technology to boost productivity and save time. Embracing GenAI assistants, for example, is estimated to save in-house counsel up to 4 hours a week, equating to approximately 200 working hours per year. This is forecasted to grow to 12 hours within 5 years, representing substantial savings that can be channelled into high-value advisory, innovation initiatives and strategic planning.
arch.law: Transforming Legal Practice
Legal professionals partnering with arch.law can access a technology-driven legal platform designed for agility, collaboration and innovation and built to maintain confidentiality and compliance. Established to deliver innovative legal solutions aligned with modern practices, arch.law supports members with quality resources and cutting-edge technology.
Operating an entirely cloud-based infrastructure, members benefit from seamless access from any location and device, without the restrictions of desktop servers or legacy systems. This translates into scalability, reduced IT maintenance and ready support well placed to assist remote and hybrid workforces.
Everything in arch.law, from secure document sharing and specialist workflows to billing and client communications, is engineered for centralised, real-time collaboration. Teams can work in sync, update matters in real-time and monitor progress using management dashboards, each an essential capability for agile legal businesses that demand speed and flexibility.
Arch.law has developed a 3-5 AI strategy and actively engages GenAI to support property and litigation work in addition to introducing significant efficiencies to business operations. Leveraging GenAI to transform administrative tasks helps eliminate repetitive workflows, enabling legal teams to rapidly generate precedents, automate routine filings or generate client alerts.
Furthermore, arch.law has established partnerships with Actionstep, a leading provider of cloud-based legal practice management automation software, and Legl, a cloud-based SaaS platform empowering modern law firms to effectively manage risk, compliance and client operations.
Arch.law plays an integral role in testing pioneering technologies in major jurisdictions, including the development of Australia’s leading online property exchange platform, PEXA, in the UK market. In supporting innovative cultures, the firm offers a partner environment that encourages continuous improvement together with the tools to deliver it.
Realising the Benefits
Tasks that were once labour-intensive, such as document review, contract drafting or matter intake, can be completed in hours. This speed and efficiency mean clients receive value faster, and firms can price more competitively. Additionally, with routine work automated, lawyers can maintain a strategic focus and dedicate time to high-value tasks like negotiation, client strategy and practice development. This can elevate job satisfaction and drive deeper client engagement and retention.
Technology can be used as a tool to differentiate from competitors, with firms built on agile, cloud-based platforms like arch.law signalling to clients and recruits that they are future-facing and embrace change. This can be particularly compelling for clients seeking partners who mirror their own innovation ethos and can help them sustain a competitive edge. Furthermore, arch.law can support firms as they grow by reducing or removing the need for heavy IT investment or additional support staff. Instead, firms can onboard new team members quickly using integrated workflows and consistent processes.
Supporting the Future
The 53% of Australian law firms that have not adopted any new legal tech in five years risk losing ground to peers embracing innovation and cloud-based platforms. Investment intent is growing, but the gap between intention and action remains wide.
arch.law offers a compelling alternative that enables firms to capture efficiency, client value and strategic advantage. For legal professionals serious about evolving their practice and positioning their firm for future growth, partnering with arch.law will help deliver the transformation supporting you to grow your business within ours.
With collaboration hubs in Sydney, Brisbane, Perth and Newcastle, get in touch to find out how arch.law may be the future for you and your clients.
More about Jonathan:
Jonathan Patterson is the Chief Operating Officer at arch.law, where he leads business operations and drives innovation across the firm. With a strong background in legal technology and strategic transformation, Jonathan is committed to making it easier for arch.law members to deliver high-quality, efficient client solutions.
Prior to joining arch.law, Jonathan spent nine years at DWF Group plc, where he served as Managing Director of Innovation and Ventures. In that role, he spearheaded the development of new legal products and services by integrating emerging technologies, alternative resourcing models, and process redesign. His earlier experience includes leading business development at Addleshaw Goddard, further cementing his expertise in the business of law.
A pioneer in legal innovation, Jonathan specialises in creating scalable, client-focused solutions and has a proven track record of helping legal teams grow through both organic and acquisitive strategies. At arch.law, he continues to champion a forward-thinking approach to legal service delivery, ensuring the firm remains agile and future-ready.
