Mid-sized law firm must-knows from the 2025 Legal Trends Report

Since 2016, Clio’s Legal Trends Report has been the legal sector’s go-to for data-backed insight. Each year, it dives deep into how law firms are operating, what’s changing, and what forward-thinking firms can do to stay competitive.

For mid-sized firms in particular, the 2025 edition of the Legal Trends for Mid-Sized Law Firms report offers something uniquely valuable: clear, data-driven insights tailored to the realities and ambitions of firms that are bigger than small practices but not quite large enterprises.

So, what’s happening in the world of mid-sized law firms — and what should leaders be paying attention to in the months ahead? Here’s a breakdown of this year’s key findings.

1. Mid-sized firms are billing smarter (and higher)

For the first time, the report breaks down billing data by firm size, and the results are eye-opening. Nearly all mid-sized firms (99%) use multiple billing rates for their lawyers — compared to just 85% of smaller firms.

They’re not just charging more, but charging more strategically. On average, a mid-sized firm uses eight different hourly rates for lawyers and nine for non-lawyers. That’s a significant jump from smaller firms, which only use around three rates for each.

2. AI has entered the chat — in a big way

If 2024 was the year law firms flirted with AI, 2025 is the year they’ve gone all in. A whopping 93% of mid-sized firms now report using AI in some form, with over half (51%) saying it’s become a standard part of their operations.

Popular uses include:

• AI-powered legal research tools (66%)
• General productivity tools (65%)
• Document automation and drafting (60%)

Why the shift? Time and cost savings are the big draws — but firms also say AI helps improve the quality of their work, increase client engagement and take on more cases. It’s not just hype; it’s helping.

3. Fixed fees are winning — and clients are leading the charge

Billing models are evolving. While hourly billing is still very much alive, fixed fees are now the most common method used by mid-sized firms. Subscription-based pricing is also on the rise — used by 27% of mid-sized firms compared to a much smaller slice of smaller firms.

Clients are clearly in favour: over 50% of prospective clients say they’d prefer to pay via fixed fees or subscriptions. Mid-sized firms are responding by offering more predictable, transparent pricing — both for full matters (82%) and specific tasks (41%).

This signals a wider industry shift. Transparency isn’t just nice to have; it’s now a competitive necessity.

4. Marketing smarts: Referrals matter, but they’re not everything

While referrals are still the top source of new clients, mid-sized firms are increasingly using a broader mix of marketing channels — think websites, SEO, online reviews and social media. This diversification is backed by better resources, allowing firms to reduce over-reliance on word-of-mouth.

Crucially, firms using features like e-signatures, online schedulers and digital intake forms are seeing real results:

• 20% higher revenue
• 12–15% better conversion rates
• Faster time-to-hire for new clients

The takeaway? Streamlined client onboarding isn’t just good for clients — it’s good for the bottom line.

5. Software spending is rising — but cloud-based LPM hasn’t caught up

Mid-sized firms are investing more in technology overall. On average, they spend 2% of their annual expenses on software.

Their top spending categories include:

• Staff salaries (41%)
• Rent, marketing and office expenses (16% combined)
• Software (2%)

They’re adopting tools like cloud storage (50%), video conferencing (45%) and e-signatures (45%). But here’s the surprising bit: only 38% are using cloud-based legal practice management (LPM) software — compared to 71% of smaller firms.

This lag could be a missed opportunity. LPM platforms streamline workflows, support remote access and integrate with everything from billing to client intake. For firms already stretched on time and talent, the ROI is clear.

The bottom line: Mid-sized firms are gaining ground — but there’s work to do

Mid-sized law firms are shaking off their legacy-tech image. They’re embracing AI, diversifying their billing models, and getting savvier with marketing and client intake. But gaps remain—especially around cloud-based LPM adoption.

The most successful firms in 2025 won’t just be the best legal minds. They’ll be the ones who combine their expertise with tools and insights that let them work smarter, grow faster, and meet clients where they are.

Discover why over 1,000 mid-sized firms rely on Clio to elevate their practices.

Want the full picture? Download the 2025 Legal Trends for Mid-Sized Law Firms report and see how your firm stacks up — and where the biggest opportunities lie.