The Legal AI Adoption Curve: Where Your Law Firm Stands (And What to Do Next)

It’s a question you’ve likely been grappling with more and more lately as you hear about your peers adopting AI: Where does your firm stand on legal AI adoption?

AI is rapidly transforming legal work, with new AI solutions emerging to assist with everything from streamlining document review to optimizing caseload distribution and beyond. Increasingly, AI is giving legal professionals access to new knowledge and capabilities that were unthinkable just a few years ago. 

However, law firms have unique goals, workflows, and technology setups, so AI adoption isn’t a one-size-fits-all solution. Successfully adopting AI involves more than just implementing the latest buzzworthy tools—it’s about having the right foundation in place first and building from there.

The AI adoption curve in the legal industry outlines the different stages law firms go through when adopting artificial intelligence. Many firms want to embrace AI but aren’t sure where to start. Use this framework to assess your firm’s readiness to adopt AI and determine the best next steps to getting there strategically. We’ll help you assess your firm’s readiness, understand common obstacles, and prepare you to take the next steps in your firm’s AI journey.

The five stages of AI adoption for law firms

To successfully benefit from the full spectrum of AI capabilities, the first step is to know where your firm currently stands on the adoption curve. Let’s explore the five key stages of law firm AI adoption—once you identify your firm’s stage, you’ll be better positioned to determine the best path forward.

1. The Skeptics: AI is buzz, not business critical (yet)

Skeptics are just that when it comes to legal AI adoption: skeptical. They remain cautious about using AI at their firms, seeing it as unproven, risky, or unnecessary.

Firms that fall on this point in the adoption curve often rely on on-premise or outdated tools for their legal work—think local storage, manual time tracking, and spreadsheets.

Skeptics have yet to experiment with AI or simply don’t trust it for legal work. They worry about AI’s impact on confidentiality, bias, and ethical standards—and feel it is safer to rely on tried-and-tested processes. Skeptics perceive AI implementation as a big undertaking and are not sure if the return on investment is worth the effort and cost of overhauling their processes.

But by being skeptical of new technology like AI, some of the challenges their firms face are:

• Time lost to tedious manual work: Firms using outdated tools for legal work spend significant time on repetitive tasks like drafting documents and tracking billable hours manually. This results in longer working hours, higher administrative costs, and lower utilization rates, as less time is spent on billable work.
• Missed efficiency gains: Without automation and cloud-based software—let alone AI—these firms miss out on the productivity benefits that could streamline their operations.

Next steps to move forward:

• Start small: Begin by exploring lower-risk AI-powered applications, such as legal research tools or generative tools for marketing communications (such as ChatGPT). These applications don’t require the input of sensitive data and can help you gain confidence in AI in a lower-risk way while boosting firm efficiency.
• Optimize your core systems: If you’re currently using outdated manual systems, transitioning to cloud-based legal practice management is a crucial first step. Cloud-based practice management solutions like Clio streamline your processes and create a foundation for future AI integration, helping ensure the transition will be smoother when you’re ready to implement AI tools.
• Learn from your peers: Research other firms successfully using AI in their practices in a way that complements human expertise. By understanding their successes and challenges based on their real-world experiences, you can better prepare your firm for AI adoption in the future. 

2. The Explorers: Curious about AI, but not using it yet

The next stage on the legal AI adoption curve is Explorers—firms that are actively interested in AI but haven’t yet implemented it. These firms have already experienced some benefits of present-day technology and automation at their firms and are eager to explore how AI could further enhance their workflows.

Explorers tend to stay up-to-date with technology and legal tech advancements, attending legal tech webinars, and reading AI reports to better understand its potential.

Where they are stuck:

• Unclear about the AI applications in legal work: While Explorers recognize AI’s potential, they hesitate to adopt it because they’re unsure how it applies specifically to legal tasks.

The reality? A significant portion of legal work is ripe for AI-powered automation. According to Clio’s latest Legal Trends Report, 74% of hourly billable work—such as document preparation, information gathering, and data analysis tasks—could be automated with generative AI. This means that firms that delay AI adoption risk falling behind as others gain efficiency advantages.

• Concerns about compliance, ethics, and costs: Like Skeptics, Explorers worry about navigating compliance and ethical considerations with AI. Cost is also a key concern as firms consider the investment required for AI tools.

Next steps to move forward:

• Stay informed: Knowledge is power when it comes to confidently adopting AI. Stay updated on AI trends through resources like Clio’s Legal Trends Report, subscribe to our blog newsletter, and attend relevant AI-focused industry events and conferences like Clio’s Legal AI Virtual Summit and ClioCon.
• Identify AI use cases that address firm pain points: Don’t try and apply AI to every part of your firm’s operations at once. Find and focus on a specific area where AI can add immediate value to your firm. From contract review to legal research, identifying specific pain points can help guide you as you consider AI for your firm. A focused win can help set you up for wider adoption.

3. The Experimenters: Testing AI, but lacking cohesion

Next up are the Experimenters—firms that have dabbled in AI but lack a cohesive, scalable strategy. They’ve tested AI in isolated areas like chatbots, transcription, or drafting client communications. However, without a unified approach, they rely on a mix of disconnected tools, leading to inefficiencies.

While Experimenters want to scale AI usage, they struggle with integration and consistency across the firm.

Challenges they face:

• More silos instead of streamlining operations: Without a strategic approach, layering in AI tools can add complexity rather than simplifying workflows.
• Limited staff adoption: Some employees embrace AI, while others hesitate due to uncertainty with AI, lack of training, difficulty changing existing habits, or all three. Without the whole firm on board, the full benefits of AI go untapped.
• Lack of integration with core legal workflows: Using standalone AI tools that don’t sync with their practice management system leads to duplicate work.

Next steps to move forward:

• Audit AI usage: Pinpoint which current AI tools enhance productivity—and which are creating inefficiencies.
• Prioritize AI that works well within existing legal workflows: Instead of disconnected tools, look for AI solutions that seamlessly work within your existing systems. For example, Clio Duo integrates AI-driven automation into case management—so firms can reap AI benefits without tech headaches.
• Boost staff AI awareness and adoption: Train staff on where AI makes sense and where it doesn’t. This could look like encouraging firm-wide AI literacy by offering training sessions, and always challenging each other to find the best tool for the job, not just because there’s an AI option.

4. The Integrators: AI Is embedded, but needs optimization

The Integrators are using AI across multiple areas—from document automation and client intake to legal research. They’re already seeing significant time savings from these tools, but to maximize the potential of AI, they now need to scale it strategically while maintaining ethical best practices and ensuring security and compliance.

Challenges they face:

• Ensuring legal soundness and avoiding over-reliance: While AI can generate documents and research quickly, human oversight is essential to review and verify accuracy and compliance with legal standards. Without proper safeguards and human oversight, firms risk AI hallucinations, biased outputs, or other ethical missteps. Integrators must implement structured review processes to ensure oversight and keep AI as a useful tool, rather than a replacement for human judgment.
• Measuring ROI: AI saves time, but firms need clear performance metrics to assess how much value AI is really delivering—such as its impact on profitability and efficiency—to be sure continued investment will deliver value.

Next steps to move forward:

• Automate firm-wide processes: Expand AI usage beyond isolated tasks, bringing it to firm-wide applications like document summarization, contract analysis, and client communication. AI works best when it’s deeply embedded into case management and billing.
• Strengthen AI governance policies to ensure compliance: Establish clear guidelines for AI usage through a comprehensive law firm AI policy.
• Develop AI performance metrics: Track efficiency gains, cost savings, and impact on client relationships to help measure the impact of AI and your ROI.

5. The Innovators: Leading the way in AI-powered legal work

As the top 5–10% of AI adopters in the legal industry, Innovators are taking the lead in AI-driven transformation. These firms aren’t just using AI for improved efficiency—they’re redefining how technology can enhance strategic decision-making and client service. They’re also driving further innovation by exploring custom AI models and automation-driven insights.

Challenges they face:

• Quantifying AI’s ROI: While legal technology spending has surged—software has been the highest spending growth area for firms since 2012, according to the latest Legal Trends Report—firms need clear performance metrics to properly evaluate AI’s impact on efficiency, profitability, and case outcomes.
• Maintaining human oversight: Even—and perhaps especially—as AI capabilities grow, firms need to establish policies and frameworks to ensure that human oversight is a priority and that AI remains in a supporting role.
• Navigating ethical and regulatory developments in AI law: With AI law and ethical considerations rapidly evolving, Innovators need to stay ahead of emerging regulations to ensure they stay compliant and responsible with their AI use.

Next steps to move forward:

• Leverage AI technology like Clio Duo that further enhances your firm’s processes: Speed up administrative work, summarize documents faster, and quickly find the info you’re looking for with Clio Duo’s AI-powered capabilities, built into Clio Manage.
• Use AI insights to drive informed business decisions: Clio Duo takes AI beyond simple automation—helping firms gain real-time insights and optimize their caseload distribution.
• Commit to ongoing AI training: Ensure staff stays informed on AI best practices, ethical considerations, and evolving regulatory requirements to help mitigate risk while maximizing AI’s potential.   

Legal AI adoption isn’t just about AI—it’s about the right foundation

No matter where your firm currently falls on the legal AI adoption curve, success needs a strong foundation—not just new tools. However, many law firms adopt AI too quickly without the right tech infrastructure, leading to disjointed workflows and inefficiencies. The key to successful law firm AI adoption isn’t just adding flashy AI tools; it’s building on the right legal tech infrastructure.

Think of AI adoption as a journey, not a shortcut. Firms that start with cloud-based legal technology and then gradually layer in AI tools set themselves up for more seamless AI integration and, ultimately, success.

What is the AI adoption curve in the legal industry?

The AI adoption curve in the legal industry represents how law firms progress through different stages of adopting artificial intelligence. These stages typically include Skeptics (who haven’t adopted AI), Explorers (who are curious about AI but haven’t yet implemented it meaningfully), Experimenters (who have started testing AI), Early Adopters (who use AI in multiple areas), and Innovators (who use AI for strategic decision-making, client service enhancements, and efficiency gains).

What are the first steps in implementing AI in a law firm?

When implementing AI in a law firm, the first step is to ensure there is a strong foundation of processes and technology, starting with cloud-based legal practice management software. From there, firms can identify key pain points and choose AI tools to address them. 

What are the key stages of AI adoption for law firms?

The key stages of AI adoption for law firms include Skeptics (haven’t adopted AI), Explorers (curious about AI but haven’t implemented it meaningfully), Experimenters (started testing AI), Early Adopters (use AI in multiple areas), and Innovators (use AI for strategic decision-making, client service enhancements, and efficiency gains).

How fast is AI adoption happening in the legal industry?

AI adoption is accelerating quickly in the legal industry, with 79% of legal professionals using AI in their practice in 2024, up from just 19% in 2023, according to Clio’s latest Legal Trends Report.

What are the biggest challenges law firms face when adopting AI?

The biggest challenges law firms face when adopting AI include maintaining human oversight and ensuring outputs are legally sound, navigating ethical and regulatory challenges, and integrating AI into existing law firm workflows.

We published this blog post in March 2025. Last updated: April 21, 2025.

Posted in: Technology