Law Firms Excel in Tech Investment but Lag in People Development, Survey Finds
A recent survey by Forrest Solutions, a staffing and outsourcing firm, reveals a striking contrast in how Am Law 200 law firms prioritize their investments. While these firms are making significant strides in adopting cutting-edge technologies, they are falling short when it comes to investing in their people, highlighting a potential blind spot in their pursuit of innovation.
Technology Takes the Lead
The survey, which included responses from approximately a quarter of the Am Law 200 firms, underscores a robust commitment to technological advancement. Law firms are increasingly allocating substantial budgets to digital infrastructure, generative AI tools, and process automation to stay competitive in a rapidly evolving legal landscape. For instance, firms like Cooley and Orrick, Herrington & Sutcliffe have invested heavily in developing tailored software solutions, such as Cooley’s Vanilla platform, which streamlines manual processes and frees paralegals for higher-value work. Similarly, A&O Shearman’s tech incubator, Fuse, fosters a “tech-focused mindset” by supporting startups that address specific legal needs.
This surge in tech investment is driven by client expectations for efficiency, speed, and transparency, as well as the potential for generative AI to automate routine tasks like legal research, brief drafting, and document review. According to the Thomson Reuters Institute, law firm tech spending has consistently outpaced inflation, with real growth reaching 4.9% in 2021, reflecting a strategic push to leverage AI for greater profitability and workflow optimization. The Legal Services Board’s 2023 survey further supports this trend, noting that 95% of firms found technology adoption made them more responsive to clients’ needs, with 61% implementing tools to enhance access to legal services.
People Investment Lags Behind
Despite this technological progress, the Forrest Solutions survey highlights a critical gap: insufficient investment in employee development and retention. While firms are quick to adopt tools that enhance operational efficiency, they are less focused on fostering the skills, engagement, and well-being of their workforce. The survey indicates that many firms are experiencing a growing desire among employees for more meaningful development opportunities, which are often overshadowed by the emphasis on billable hours and technological upgrades.
This disconnect is echoed in other industry reports. A 2021 LITIG survey in the UK found that only 34% of legal professionals believed their firms had a clear culture of continual innovation, and 14% cited a lack of training or confidence as a barrier to using available tech tools. Similarly, a Sapient Insights Group survey revealed that 41% of organizations, including law firms, plan to increase HR tech spending to address retention and productivity, yet many still rely on outdated training methods like clunky learning portals. The Thomson Reuters 2022 Dynamic Law Firms Report emphasizes that top-performing firms pair tech investment with a strong firm culture and aggressive talent development, which leads to lower turnover and higher productivity. In contrast, firms that neglect these areas risk falling behind in the ongoing talent war.
The Risks of Imbalance
The focus on technology at the expense of people investment poses significant risks. Lawyers and staff who feel unsupported or untrained in new tools may struggle to maximize their potential, leading to inefficiencies and dissatisfaction. The Blickstein Group’s 2025 Law Firm COO Survey noted that partners often resist tech upgrades, further complicating adoption when training is inadequate. Moreover, as clients demand greater transparency and efficiency, firms that fail to invest in their people may struggle to align technological capabilities with client-facing skills like communication and negotiation, which remain critical for building trust and securing business.
A Path Forward
To address this imbalance, industry experts suggest that law firms integrate people development into their innovation strategies. Structured learning paths, such as those offered by platforms like The Law Firm Admin Bootcamp + Academy™, can align employee training with firm goals, improving engagement and reducing turnover. Gamified learning and regular check-ins can also make training more effective and less resource-intensive. Additionally, firms should prioritize clear communication about how tech tools address specific workflow gaps, ensuring lawyers and staff are confident in their use.
As the legal industry continues to evolve, law firms must recognize that technology and people are not mutually exclusive investments. By fostering a culture that values both, firms can unlock the full potential of their technological advancements while building a loyal, skilled workforce capable of meeting client demands in an increasingly competitive market.
Sources: Forrest Solutions Survey, Thomson Reuters Institute, Legal Services Board, LITIG, Sapient Insights Group, Blickstein Group, Law.com