The legal industry is in a transformative moment. With 83% of law firm leaders enacting hybrid work policies and artificial intelligence reshaping traditional workflows, law firms face unprecedented pressure to evolve. Success requires mastering three critical areas: AI-driven workflows, integrated data strategies, and effective hybrid work models.
Here’s your roadmap for navigating these changes while maintaining the high standards your clients require.
AI-Driven Workflows: The Future of Legal Practice
AI tools are revolutionizing everything from contract review to legal research. As Matt Miller, VP of Strategic Solutions at legal technology provider Litera, notes, “There is a huge wave in AI development, and 2025 will bring an influx of AI agents and AI-driven workflows.”
Understanding Small Language Models (SLMs) and GenAI
Small Language Models are emerging as game-changers for law firms. These specialized tools offer legal expertise with enhanced privacy and efficiency. They can run on local installations rather than in the cloud, potentially at a lower cost. Although less powerful than their large language model (LLM) counterparts, SLMs can excel in niche legal tasks.
At the same time, tools such as Microsoft Copilot, which rely on LLMs, are busy transforming document generation and contract review.
These generative AI (GenAI) assistants analyze complex legal documents, suggest relevant clauses, and streamline routine drafting tasks. As a result, lawyers can dedicate more time to higher-value strategic work.
Preparing for AI Integration
Successful AI adoption depends on more than just installing new tools. Law firms must establish robust oversight mechanisms and ensure their AI systems are trained on high-quality, bias-free data.
Forward-thinking firms are creating dedicated AI teams and specialized roles. AI data strategists, for example, help guide implementation and ensure the ethical use of these tools.
Breaking Down Data Silos: The Key to Smarter Decision-Making
Data silos represent a significant challenge for law firms and other organizations, potentially costing them millions annually in inefficiencies and missed opportunities.
“Without unlocking data silos, achieving [an effective data strategy] is virtually impossible, resulting in a missed opportunity for the competitive advantages that accompany AI integration,” says Muhi Majzoub, chief product officer at OpenText.
The Role of Data Lakes in LegalTech
Data lakes are playing an increasingly important role for law firms. These centralized repositories enable seamless data storage, integration, and analysis.
Data lakes support robust data strategies by breaking down departmental barriers and ensuring that AI models receive high-quality, up-to-date inputs for optimal performance.
For example, one accounting firm working with Xantrion successfully eliminated data silos by implementing a cloud-based environment, dramatically improving their systems integration and efficiency.
Strategies for Implementing Data Integration
Successful data integration requires a methodical approach that includes:
- Clear data governance policies
- Integration tools that connect different practice areas
- Regular data quality assessments
- Standardized processes for data collection and management
Adapting to Hybrid Work: Training and Mentoring in a Changing Environment
The trend is toward more professionals working in the office more often. Law firm Littler Mendelson’s latest annual employer survey shows an uptick of 8% in employers requiring employees’ in-person attendance more than they let them work remotely. Nevertheless, the total percentage of employers making this a requirement is still only 39%.
At Xantrion, we have successfully adopted a hybrid work model, using Microsoft Teams to enable efficient team collaboration and improve customer service delivery across multiple time zones.
The Importance of Flexible Training Programs
Traditional in-person mentoring must evolve to accommodate hybrid work schedules. Successful firms are combining structured virtual training with strategic in-person sessions, ensuring consistent skill development while maintaining the benefits of face-to-face interaction.
Leveraging Technology to Bridge the Gap
Virtual collaboration tools and AI-powered learning platforms are helping bridge the physical distance in hybrid environments. These technologies enable continuous learning and mentorship while maintaining team cohesion across different work arrangements.
Practical Steps to Thrive in 2025
Law firms can take the following concrete steps to position themselves for success (with a nod to recent commentary from Litera).
Build an AI-Ready Workforce
Invest in comprehensive AI training programs for all staff levels. These programs should focus on practical applications, such as prompt engineering and ethical AI use. Dedicated AI teams can also guide adoption and ensure responsible implementation across practice areas.
Invest in Scalable, Integrated Technology
Focus on streamlining your technology stack. As you do so, look for solutions that offer both stability and measurable ROI. As Litera’s Rachel Merrick Maggs notes, “Most IT professionals in law firms don’t want to manage 10-30 different providers”.
Stay Agile Amid Policy Changes
Monitor regulatory changes and industry trends to identify new opportunities. Doing so is particularly important in areas such as mergers and acquisitions, where technology can provide a competitive advantage.
Positioning Your Firm for Success in 2025
The legal industry’s continued evolution in 2025 presents both challenges and opportunities.
Firms that embrace AI-driven workflows, implement robust data strategies, and adapt to hybrid work models will find themselves well-positioned for success. By proactively addressing these changes, your firm can maintain its competitive edge while delivering more value to clients.
Need help selecting and implementing AI tools for your practice? Xantrion can guide you in choosing secure, compliant, and effective AI solutions. Learn more about our approach to AI tool selection.
