What the 2025 Legal Trends Report Means for Your Succession Plan

Each year, Clio’s Legal Trends Report offers a snapshot of where the legal industry is—and where it’s going. The 2025 edition highlights how firms are adapting to new technology, shifting client expectations, and evolving workforce dynamics.

If you’re a solo or small firm lawyer thinking about retirement, selling your practice, or simply slowing down, some trends matter more than others.

This post unpacks the most relevant findings from the 2025 report and explores what they mean for your succession plan. Whether you’re planning a sale, grooming a successor, or just starting to think about next steps, it pays to understand where the industry is headed.

Why AI Matters (Even If You’re Not a Techie)

You don’t need to be an AI expert to run a successful law firm. But as the 2025 Legal Trends Report makes clear, artificial intelligence is no longer optional. It’s rapidly becoming part of how legal work gets done and how firms demonstrate their ability to stay current.

Clients now expect faster communication, clearer billing, and more transparency. Behind the scenes, AI helps many firms deliver on those expectations. From automated scheduling to document summarization, even basic tools can improve efficiency without requiring a steep learning curve.

For lawyers planning to transition or sell their practice, this matters. Buyers aren’t just evaluating your book of business or your reputation. They are also assessing whether your systems are modern enough to support future growth. A firm that still relies entirely on manual processes may appear outdated or present unnecessary risk.

According to Clio, AI use has surged across firm sizes. While larger firms may be leading the charge, smaller firms that begin adopting tools now are more likely to remain competitive and appeal to future buyers.

You don’t need a full tech overhaul. But simple upgrades—like automated intake forms or AI-assisted timekeeping—signal that your practice isn’t stuck in the past. They also make any eventual transition smoother, both for clients and your future replacement.

Billing Models That Attract Clients and Buyers

The 2025 Legal Trends Report highlights a continuing shift in client preferences: more than half of legal consumers say they prefer flat fees over hourly billing. Why is this so? Most likely, because clients want clear expectations, fewer surprises, and a pricing structure that reflects value rather than time spent.

This trend isn’t limited to large firms or tech-forward practices. Solo and small firm lawyers are increasingly exploring flat fees for routine, well-defined matters. Estate plans, LLC formations, traffic infractions, and uncontested divorces are common starting points.

Flat Fees in Small Firms vs. Solo Practitioners

Among firms offering flat fees, solo practitioners are the most likely to use them for entire cases. In contrast, small firms more often apply flat fees to specific tasks within a case. This may reflect differences in how solos and small firms manage operations, with solos leaning toward simpler, all-inclusive pricing and small firms experimenting with more segmented approaches.

Notably, larger firms are leading the pack when it comes to subscription-based billing, another model that emphasizes predictability. While most solos aren’t jumping into subscriptions, the broader message is clear: clients value transparency and consistency over open-ended hourly rates.

There may also be a financial risk to ignoring this trend. The report notes that the most automatable legal tasks—like research and drafting—generate over $36,000 per year in billable revenue per lawyer. As AI tools accelerate those tasks, sticking to hourly billing could put up to $27,000 of that annual revenue at risk. Flat fees, by contrast, reward efficiency and are less tied to the clock.

Flat fees may not work for every matter, but incorporating them strategically can improve cash flow, reduce administrative hassle, and support a more stable foundation for the future.

What Clients Value Most

Lawyers and clients don’t always see eye to eye. The 2025 Clio report compares what legal professionals believe clients care about with what clients say actually influences their hiring decisions. While there’s some alignment, a few subtle gaps are worth noting.

First, clients rank “experience with similar cases” as a top priority, and solo and small firm lawyers largely agree. But when it comes to positive reviews and firm reputation, lawyers tend to rate those slightly lower than clients. For example, 43% of clients consider a firm’s reputation a top-three factor, while only 28% of small firm lawyers assume the same.

Another difference shows up in regards to flat fees. About 22% of clients prefer this option, but only 15% of solo lawyers name it a top factor. This suggests some firms may be underestimating the appeal of transparent pricing.

This data may not require you to overhaul your messaging, but it’s a good idea to make sure the things clients value most are easy to see when they visit your website or interact with your firm.

First Impressions Matter: Modern Intake Tools for Firms

It may seem obvious, but clients are more likely to hire a firm that makes it easy to get started. The 2025 Legal Trends Report highlights that firms using tools like online scheduling, e-signatures, and automated intake forms tend to convert more leads—and generate more revenue.

These systems aren’t just convenient. They also help create a smooth, professional first impression. Clients don’t want to print, sign, and scan documents or play phone tag just to book an initial consultation. Firms that remove friction early on build trust and momentum from the get-go.

For lawyers planning ahead, there’s a practical benefit too. A smooth intake process makes it easier to train new staff, bring on a partner, or eventually transition the firm without disrupting the client experience.

Spending Smart: Office Space vs. Software

The 2025 Legal Trends Report shows that solo attorneys still tend to spend more on office space than on technology. While a professional environment matters, an overinvestment in physical space and an underinvestment in systems can create long-term challenges.

Potential buyers look closely at how a firm runs behind the scenes. Outdated billing systems, manual intake, or inconsistent workflows may raise concerns. On the other hand, simple upgrades like cloud-based file storage, online payment tools, and intake automation are linked to higher revenue and greater efficiency, according to the Clio report.

Think of it as staging your practice for sale, just like you would a home. You don’t need to renovate everything. But a few strategic improvements can go a long way in making your firm feel modern, efficient, and therefore more attractive to a potential buyer.

Strategic Planning Starts with Staying Current

The 2025 Clio report makes one thing clear: the legal industry is evolving fast. Whether it’s intake systems, billing models, or AI tools, the way law firms operate is changing. Small updates made today can lead to major advantages down the road.

If your goal is to retire or sell your practice, these trends are essential to a strong succession plan. But even if you’re not ready to step back, they are just as relevant to broader strategic planning.

Roy Ginsburg works with solo and small firm lawyers who want to future-proof their practices. Whether you're planning for growth, leadership changes, or an eventual exit, Roy helps you think through what comes next and align your firm with where the profession is heading.

Succession Planning

If you're preparing to retire, sell your practice, or reduce your workload, Roy will guide you through a step-by-step succession plan that protects your clients, preserves your firm's value, and helps you exit on your terms.

Strategic Planning

If you're staying in the game but want to strengthen your practice, Roy offers strategic planning support to help you improve operations, plan for leadership changes, or lay the groundwork for a future transition.

Schedule a free consultation to explore which path is right for you—and how to move forward with clarity and confidence.

Note: Data referenced in this post is drawn from Clio’s 2025 Legal Trends Report for Solo and Small Law Firms. The full report is available at clio.com/resources/legal-trends. All commentary and analysis are the author’s own.