By Legal Futures Associate Clio
Mid-sized law firms have often been caught in the middle—too large to operate with the agility of smaller practices, yet without the scale or tech budgets of larger firms. But that’s changing fast.
According to the Clio’s newly released 2025 Legal Trends for Mid-Sized Law Firms report, firms in this category are not just catching up—they’re pulling ahead in key areas like pricing strategy, AI adoption, marketing diversification, and tech-enabled client intake.
This article explores the report’s most relevant insights for firms and what they mean for the future of legal service delivery.
Fixed fees, tiered rates, and subscription models are redefining legal pricing
One of the clearest shifts? How firms are pricing their services.
Fixed fees are now the most commonly offered billing method among mid-sized firms, with many also exploring subscription models—particularly appealing to SME clients seeking ongoing support with predictable costs. However, hourly rates haven’t disappeared. Instead, firms are becoming more sophisticated, using multiple rate tiers across lawyers and support roles to reflect value and expertise.
Key stats:
- 64% of mid-sized firms offer fixed fees
- 54% still offer hourly billing—but with greater rate differentiation
- Subscription-based services are now offered by 27% of firms
Client expectations around transparency and value are driving this change. Firms that fail to adapt risk being seen as outdated.
AI is no longer an outlier—it’s becoming business as usual
In just 12 months, AI usage in mid-sized firms has gone from early-stage adoption to near-ubiquity. The report shows that 93% of mid-sized firms now use AI tools, and over half have integrated them deeply into day-to-day work.
The most common tools? Legal research platforms, document automation, and even non-legal AI tools for admin or content generation.
While AI’s long-term role in the profession is still being shaped, for now, it’s a clear driver of productivity, client responsiveness, and cost efficiency.
Marketing is expanding beyond referrals—with real results
Referrals remain a reliable source of new business, but mid-sized firms are no longer relying on word-of-mouth alone. Instead, they’re turning to online marketing, SEO, and client review platforms to reach a wider audience.
And it’s paying off. Firms that invest in online intake tools, e-signatures, and appointment scheduling see stronger revenue growth and faster conversion rates.
Performance insights:
- Firms using digital intake tools report 20% higher revenue
- Online schedulers improve time-to-hire by up to 15%
- Mid-sized firms are less reliant on referrals than smaller firms (16% vs 51%)
Software spend is up—but LPM adoption remains a weak spot
The average mid-sized firm now spends 2% of its total budget on software—nearly double the historic benchmark. But one critical area is lagging: legal practice management (LPM) software adoption.
Despite being widely available and relatively mature, only 38% of mid-sized firms use LPM tools, compared to 71% of smaller firms. The gap is striking—and suggests that many firms still haven’t unlocked the full benefits of centralised, cloud-based operations.
This presents a growth opportunity for forward-thinking firms willing to modernise.
The Outlook: smarter, tech-Savvier, and more client-focused
The message is clear: mid-sized firms are no longer “stuck in the middle.” They’re reshaping their role in the legal market by adopting new technology, revisiting outdated billing models, and expanding how they reach and serve clients.
The firms that will thrive in 2025 and beyond are those willing to evolve—leveraging data, automation, and flexible pricing to offer clients greater value and better experiences.
Download the full 2025 Legal Trends for Mid-Sized Law Firms report for more insights on how mid-sized practices are positioning themselves for long-term success.
