The 10 Biggest Challenges Facing the Legal Profession
The main challenge for any profit-making organisation this year, including any practice of law, is undoubtedly getting back on track by being able to win and serve customers profitably again. However, the moving feast of challenges facing law firms each year always presents a number of additional specific challenges.
As a team of 400+ professionals working closely with solicitors, we gather a whole raft of relevant information about the profession. Because we are in the business of solving law firm pain points, we learn more about the challenges facing the legal profession every day. With this information we have compiled a list of insights highlighting what we believe are the 10 greatest challenges facing law firms.
As the well-known adage goes: “Most businesses are faced with a number of great opportunities brilliantly disguised as impossible problems.” Whilst many of the challenges (or great opportunities, depending on which way you look at it) on our list may appear incredibly tricky to solve, technology can help. As the legal software providers of choice for thousands of UK law firms, in this blog we reflect on the needle of innovation and how the tech can help.
This article acknowledges each individual challenge recognised by the profession, and whilst we all appreciate that technology cannot solve everything, it certainly has a key role to play. Keep reading to explore the legal tech that already exists and how it will contribute to solving challenges for law firms, as well as the exciting tech developments on the horizon that will also play their part.
What are the biggest problems and challenges faced by law firms today?
The legal sector continues to adapt to changes in working patterns and the demands of an evolving world. Law firms currently face a number of significant challenges. The increasing demands of a highly regulated industry, cybercrime, the growing need to meet clients’ rapidly evolving expectations in an increasingly online world, and the work-related stress that the legal career is becoming synonymous with are just a few of the ongoing challenges facing the profession.
We have pooled a number of our legal tech experts within the Access Legal team and, as a collective, we believe managing the modern law firm today presents these new challenges, as well as a host of new perspectives. This blog seeks to reflect on each, and also what the technology landscape can do to help.
We believe the greatest challenges law firms and the legal sector face are:
- Law firm recruitment and talent retention
- Fee earner burnout
- Lawyer competency
- Meeting your clients’ digital expectations
- Equipping the law firm with the right AI-powered technology
- Thriving as a hybrid-working law firm
- Keeping cybercriminals at bay
- Remaining on top of compliance
- Renewing Professional Indemnity Insurance (PII)
- Knowing how to work your law firm data
1. Law firm recruitment and talent retention
It has been reported new data from the two tech giants (LinkedIn and Microsoft) who surveyed 31,000 individuals across 31 countries, found that the percentage of people (46%) who want to quit their jobs in the year ahead is actually higher than in 2021 (40%) when it was dubbed ‘The Great Resignation’. The data also found 59% of us contemplate a job move, seeking they feel stuck in their job due to the cost of living having spiralled, the threat of layoffs (thanks to AI and overhiring) looms, and flexible working arrangements. With many companies issuing return-to-office obligations but more employees looking for flexible working arrangement there is an increasing number of headlines about how many employers are struggling to attract and retain talent.
According to recent findings, over half of law firms and in-house teams are struggling to recruit, with 57% of law firms reporting difficulties in hiring staff. In-house teams are also feeling the pressure, with 56% indicating challenges in recruitment. The competition for talent is intensifying, with law firms finding it particularly hard to attract candidates with the right experience and skills. This ongoing recruitment struggle underscores the urgent need for firms to adapt their strategies in order to compete for top talent in a competitive job market.
How can technology help law firms recruit and retain talent?
A poor recruitment process can cause firms to lose good candidates before a job offer is made. A powerful HR system can help with the recruitment process, as well as onboarding and payroll.
To attract and retain staff law firms need to invest in reliable and secure legal case and practice management software. In today’s competitive job marketing remote work flexibility has become essential—nearly half (47%) of workers consider whether an organisation allows remote work as a key factor in choosing a job. Additionally, over half (58%) of employees would switch to a competitor if the new company offered a better culture, underscoring the importance of fostering a positive work environment. Ensuring your firm can offer flexibility, along with the right technology, is vital to attracting and retaining skilled professionals.
Related content: How tech can empower your people and transform your firm.
2. Fee earner burnout
Most sectors acknowledge that their people are their biggest asset. However, for a law firm this claim is probably even more significant. Law firms are of course selling legal expertise in terms of fee earner time.
Because of this, there is constant pressure to maximise fee earning time. A fee earner with a billable target of 1400 hours per year is considered modest by the profession’s normal standards, but it equates to keeping up around 6 hours of chargeable time every working day. A tall order for the human beings behind the numbers.
Mental health has suffered for many throughout recent years, not just lawyers, and for all sorts of reasons. And although for decades the workplace has taken physical health and safety seriously, it is only in recent years that psychological safety in the workplace has started to become a far higher priority.
So how are the lawyer burnout statistics stacking up? The 2024 Attorney well-being Report from Bloomberg Law provides evidence that suggests legal professionals are at high risk of burnout. The survey reported that 56% of lawyers reported disrupted sleep, 55% experienced anxiety, and 44% reported lower job satisfaction. Burnout was especially prevalent mong younger lawyers, with those aged 25 to 34 reporting burnout 58% of the time in the latter half of 2023. In comparison, 52% of lawyers aged 35 to 44, 49% of those aged 45 to 54, and 48% of those aged 55 to 64 reported similar levels of burnout. Only 23% of lawyers over the age of 65 reported burnout at this level.
The data promotes law firm leaders to ask themselves critical questions – what are the working conditions of a lawyer in my firm? Why do lawyers work so much in my Practice? Do we have a problem with overworked lawyers in this organisation? Of course, just as with physical health and safety, there is an educational piece law firms must carry out in terms of sharing knowledge with staff on how to keep themselves mentally healthy. There is a piece of work to be done to equip managers so they can confidently support workers who are struggling. There is also a duty of care for law firm line managers in terms of signposting when it is clear a mental health professional needs to be called upon. This is all part of a law firm’s developing wellbeing strategy.
How can technology help law firms fee earner burn out?
Advancements in technology are playing a key role in reducing burnout among lawyers, particularly by automating administrative tasks. Software that streamlines legal workflow automation allows lawyers to focus more on high-value tasks that align with their expertise, making their workday more manageable and less stressful.
Case Management workflows are designed to automate much of the mundane and menial work that previously filled up lawyers’ days. The profession’s growing openness to technologies such as AI (artificial intelligence) and machine learning is also contributing to this shift, with AI set to take automation to whole new level. The rise of generative AI (Gen AI) means legal technology can now handle tasks like document review, legal research, and contract analysis, providing lawyers with more time to focus on strategic and client-facing aspects of their roles. The ongoing adoption of AI in legal practices promises not only to improve efficiency but also to alleviate stress, contributing to better well-being for fee earners.
3. Lawyer competency
So you’ve built your loyal and talented workforce and you are doing all you can to look after their psychological safety and overall wellbeing in the legal workplace. How does the law firm manage the competency of its people?
This we believe is another significant challenge for law firms. A recent report by the Solicitors Regulation Authority (SRA) underscores the importance of ongoing professional development. The "Annual Assessment of Continuing Competence 2024" highlights good practices in how solicitors maintain their competence and identifies challenges some solicitors face in doing this.
Our Regulatory Director, Brian Rogers, provides monthly compliance updates to keep law firms informed about critical issues, including developments in competency. Drawing on insights from industry experts, he has emphasised that lawyers must remain regulated to ensure their competence throughout their careers—not just at the point of entry. This involves identifying risks early and implementing tools to take immediate action where standards fall short.
The ongoing training of staff, as well as the onboarding and development of new team members, is now under the spotlight. Remote working has transformed traditional methods of upskilling, presenting challenges that are hard to ignore. Junior lawyers, in particular, have missed out on opportunities to shadow and learn from senior colleagues—something that was once taken for granted. Scheduled video calls have replaced spontaneous interactions, such as chance conversations by the coffee machine or on the stairs. There is less organic learning between co-workers, which has created a culture shock in how training happens in the legal profession.
This shift hasn’t been an easy adjustment for an already stretched profession, particularly as hybrid working looks set to stay. When hybrid training is inadequate, staff are often left struggling with outdated materials or online resources that don’t provide the interaction and input they need. The result? Many will look elsewhere for opportunities.
How can technology help with lawyer competency?
A global report by Upwork on our future workforce suggests that we can expect 73% of all departments to have remote workers by 2028. The hybrid work model is preferred by 83% of employees worldwide. So developing hybrid-friendly training for their staff is one challenge law firms certainly cannot afford to ignore. There are lots of tip lists online offering a number of quick wins for improving training in our new world. Tips such as microlearning, which is the new term for learning that is presented in bite-sized chunks. Also interactivity, flexibility and asking employees for feedback are all steps in the right direction.
It’s clearly not going to be effective to send remote workers a 500-page tree-of-a-manual and expect them to read, digest and understand it. The heart of law firm training needs a re-think if we are going to reduce the negative impact of the challenges facing trainee solicitors. A good learning and compliance management system designed specifically for law firms should be a key consideration for all practice leaders. Such systems ensure that training records are maintained effectively—an area that has also drawn attention recently.
At the SRA’s Compliance Conference, it clarified that while maintaining training records isn’t mandatory for solicitors, doing so demonstrates a commitment to competency. This aligns with the principle of “If it isn’t written down, it didn’t happen.” While not a formal requirement, failing to document training could leave firms vulnerable when regulators ask for evidence. Compliance with the Money Laundering Regulations (MLRs), for instance, requires firms and Sole Practitioners to maintain robust training records. Having clear and up to date records of all e-learning, courses, webinars and internal training completed —should therefore be considered a best practice for all law firms.
Related content: The importance of regular compliance training for law firms
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4. Clients' digital expectations
There are seven statistics all law firm leaders should acknowledge when thinking about how the business can meet their clients’ expectations in our ever-increasing online world. According to leading ecommerce drop-shipping specialist Oberlo - this is how the global situation looks:
- There are 4.95 Billion active internet users on the planet.
- 65.6% of the world population has internet access.
- 28 Billion of us globally have mobile internet.
- Staggeringly, on average, we are each spending almost 7 hours per day online.
- People are spending 2 hours 22 minutes every day on social media, on average.
- There are 1.8 Billion websites
- Projected revenue from ecommerce globally are projected to hit $8.1 Trillion in 2026.
The way we all shop and interact with the world has made a revolutionary shift to online during the last decade. People shop online, book doctor and dentist appointments online, we book and pay our cab drivers using apps, we liaise with our insurance companies, our gyms and even our kids’ school teachers online – so law firms must be geared up to do the same. And many law firms are. Those that work with good legal software suppliers have all the tools they need to interact with clients and prospective clients online.
How can technology help law firms meet clients’ digital expectations?
The future of legal practice management and case management software systems today offer a range of functionality that enables law firms to embrace the online world. There are mobile apps for lawyers on the move, there are client portals so that law firm clients can check in 24/7 on the progress of their cases without needing to speak to their solicitor and good case management systems provide SMS texting features.
Law firms are learning from consumer-centric sectors, especially those wishing to accelerate their firm’s digital transformation. And with the rise of AI, the expectations of today’s digitally minded clients are only becoming more ‘on demand.’ Explore our article on how law firms are using AI to enhance client services.
5. Equipping law firms with the right AI-powered technology
Choosing the right technology for a law firm is an ongoing challenge—made even more critical with the rise of AI-powered solutions and heightened concerns around security. As we navigate a technological revolution, innovation is accelerating at an extraordinary pace, with new AI-powered software, apps, and platforms emerging almost daily. For law firm leaders, this abundance of choice can feel overwhelming, especially when their primary focus should be on serving clients and generating revenue.
Switching to new legal case management software impacts everyone in the practice, and the prospect of managing a data migration can be daunting. However, when satisfaction with existing software wanes due to poor functionality, lack of integration, or inadequate support, it’s time to make a change. Embracing AI-powered technology can transform these challenges into opportunities by streamlining workflows, enhancing efficiency, and enabling your firm to stay ahead of the curve.
How to equip solicitors with the right technology?
Figuring out where your law firm sits on the digital adoption spectrum – from paper-heavy processes to digital disruption - is an essential first step. Law firms are regularly criticised for being slow to adopt leading tech. However, at Access Legal we know lots of firms that are blazing a trail in terms of embracing innovation to improve their businesses. We also help firms who come to us wishing to reduce their reliance on traditional paper processes and become paper lite.
AI-powered automation has revolutionised routine legal processes, with workflows that take the mundane and repetitive tasks off fee earners' plates, enabling them to focus on higher-value work. However, some professionals remain wary due to past experiences with cumbersome systems. Modern AI solutions are a different story—they’re intuitive, adaptable, and designed to make life easier for your team.
A good legal software supplier will have long-established history in your sector, will understand your pain points and will have seen every scenario and have their finger on the pulse of where leading law firms are heading. As they evaluate new technology, and embrace it making it relevant for your sector, a decent software partner will take you with them, guide you and be the firm’s trusted advisors when it comes to tech. Their aim will be to free you up to concentrate on the reasons you are in business – i.e. helping people with the law and earning fees in exchange for your expertise.
Taking care of the technological side of your business for you, and keeping you in the current century so you can remain competitive and efficient should be the remit of your chosen tech partners. When a law firm wants to automate the processes of a new area of law, it should be able to build on proven workflows that already exist within their case management system, and develop them for their own purposes, using intuitive tools provided by the software system.
Access Legal has supercharged its software with AI capabilities focused on helping fee earners get more done in the moment. Our suite of legal software enables law firms to join all the dots, in terms of brining all their people, their data and multiple systems into one place. To find out more, get in touch for a free consultation with a legal software expert.
6. Thriving as a hybrid-working law firm
Navigating the terrain of hybrid working continues to be a critical challenge for law firms. The shift to hybrid models has fundamentally reshaped how legal professionals operate, presenting both opportunities and hurdles along the way.
What began as an temporary response to the pandemic has morphed into a permanent fixture in many firms' strategies. However, the transition to hybrid working isn't a walk in the park. While some firms seamlessly adapted to remote work, others grappled with ensuring secure access and maintaining productivity in a dispersed environment.
Cyber security looms large as a primary concern. With remote work on the rise, law firms have emerged as prime targets for cyber threats. Safeguarding remote connections and data transmission remains a top priority for law firm leaders.
Moreover, the hybrid model brings forth fresh challenges concerning employee engagement, collaboration, and communication. As professionals toggle between remote and in-office work, fostering cohesion and connection within teams becomes paramount.
For those returning to physical workplaces, the landscape may look different, with empty offices and virtual meetings replacing face-to-face interactions. The lines between work and personal life blur further, with some feeling the pressure to be always available.
Thriving in a hybrid-working environment demands a rethink of work culture, communication, and collaboration. Investing in legal technology that bolsters remote collaboration, secures access to resources, and facilitates seamless communication is imperative. Additionally, nurturing a culture of flexibility, trust, and work-life balance can mitigate the challenges of hybrid work setups.
As law firms continue to adapt to the evolving work landscape, mastering the intricacies of hybrid working is key to sustained success. By embracing technology, cultivating a supportive work environment, and prioritizing employee well-being, law firms can chart a course to thrive in this new era of work.
There is no escaping the challenges that homeworking brings to law firms. The need for flexible working as we transform to the world of hybrid working represents epic change for traditional office-based sectors and the working landscape has altered forever, beyond recognition. There is no doubt it will continue to be the subject of analysis and debate for a long time yet.
What can technology do to help law firms thrive in a hybrid-working world?
There is a fine-line between big-brother style monitoring and keeping a caring eye on your people. The productivity analytics that come with cloud-based systems can really help law firm leaders watch over their workforce, making sure their teams are not overdoing it, without micro-managing and adding more pressure.
From a technology perspective, it is time for law firms to turn to their trusted legal software suppliers. A good legal IT partner will be prepared to share with you the lessons law firms are learning about making the most, technology-wise, of the legal hybrid working world. Software-as-a-service and cloud hosting for all your mission-critical applications are obvious advantage for the hybrid times ahead.
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7. Keeping cybercriminals at bay
Cybercrime is rife. There’s no denying it. And it is well documented that law firms are prime targets. Underground cybercrime ecosystems continue to grow in sophistication and gather momentum. Law firms are taking it seriously, quite rightly. This is one of the most significant challenges that is probably most likely to be turning the hair of law firm leaders grey right now.
There is a lot law firm owners and leaders need to know about cyber security. It is worthwhile reading up on the learned experiences of other legal Practices that have made mistakes. We have gathered information on this, as well as a number of top cyber security tips for firms with homeworkers, steps to a healthy no-blame culture and the questions law firms should ask prospective new tech suppliers before entering into a contract with them. It’s all in our blog: Everything a law firm needs to know about cyber security .
Access Legal regularly hosts webinars and shares resources on important matters for law firms regarding cybersecurity.
What can technology do to help law firms keep cybercriminals at bay?
An IT partner for any aspect of your firm's business system must be ISO 27001 certified and have Cyber Essentials before you should even consider them. For more information on the key cyber and data questions to ask an IT provider take a read of our blog: Choosing a Legal Cloud Managed Service Provider: Key Considerations and Best Practices.
A good learning management system designed especially for law firms, that is geared up to present training of this incredibly dry area, in digestible, bite-sized chunks is a must. As is a reliable tool for logging all your staff training, so that the firm has a record of exactly where it is with cyber security training for its people, and their quiz scores.
8. Remaining on top of compliance
As key contributors to a highly regulated profession, firms of solicitors have to be on entirely on top of their compliance game at all times in order to remain in practice. The Solicitor’s Regulation Authority (the SRA) - an arm of The Law Society - is the regulatory body for solicitors in England and Wales. The Legal Services Board oversees the SRA ensuring legal services are carried out to a high standard with public interest in mind.
Law firms, no matter the size, of course have to appoint a COLP (Compliance Office for Legal Practice) and COFA (Compliance Officer for Finance and Administration) and there is continual and growing stream of considerations keeping both busy roles busy. Anti-Money laundering is just one area of focus that is continually under the spotlight. It was the subject of the Solicitor’s Regulation Authority thematic review in 2021, on the back of the fifth AML Directive which was published in 2020 - the sector’s definitive guide, after a major overhaul in response to shortcomings recognised. Firms have been fined as much as £230K+, as AML remains a key challenge for the sector.
In terms of what’s coming next for law firm compliance, Access Legal runs a regular compliance update webinar the first Thursday of every month, as well as an anti-money laundering webinar once a quarter. Both are well attended, often attracting in excess of 1000 law firm execs per webinar. Our compliance webinar recordings are available to anyone from a law firm who would like to view them retrospectively, and all solicitors, law firm owners/managers and support staff are welcome to sign up for future Access Legal Compliance and anti-money laundering webinars. There is also a blog series, highlighting topics covered at the webinars.
How can technology help a law firm stay on top of compliance?
Excellent practice and case management software is a must, where compliance tools are built-in through every module whether is the solicitors regulation authority’s accounting rules, the provision of specific anti-money laundering modules for law firms, or tools that enable firms to comply with the likes of GDPR for data protection etc. Also a good law firm specific learning management system, where compliance training can be distributed, managed and logged is a powerful addition to a law firm’s armoury.
9. Renewing Professional Indemnity Insurance (PII)
The solicitors’ market has been described as “…currently the hardest profession for Professional Indemnity Insurers…” and it’s all about the profession’s risk profile, particularly in the area of conveyancing. The underwriter’s view of risk for future claims is taking a number of factors into consideration.
The Stamp Duty Land Tax holiday which kept conveyancers mega-busy for 12 months from July 2020, has meant high transaction volumes have led to higher numbers of errors that could result in PII claims. PII proposal forms are full of pandemic-related questions as a result of the kind of claims insurers have seen.
Also, although the legal profession has faired better than expected during the pandemic, financial stability with regard to loans, deferred VAT etc. are being taken into account at renewal time.
How can technology help a law firm appease PII providers at renewal time?
By making best use of the law firm software your Practice uses your firm should be better positioned to apply for quality standards such as CQS (Conveyancing Quality Scheme) and the Law society’s lexcel standard.
Also having everyone trained up and all their training logged, along your compliance policies and decision-making will give insurers peace of mind when it comes to renewals. For more insights into how compliance and technology can help with the PII renewal process, explore our blog: Enhancing the Professional Indemnity Insurance (PII) Renewal Process with a compliance-driven approach.
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10. Knowing how to work your law firm data
There are two sides to every coin. And with law firm data – on one side the profession has more rich data available to them than ever before, offering insights and answers to most challenges. However, on the other side of the coin, we are a world suffering from information overload across all sectors. Therefore, all the answers the legal industry needs can become buried and completely lost for those firms who are not in touch with their data.
Back in 1987, in his book, “The Future of Law” Professor Richard Susskind MBE spotted this predicament evolving then when he spoke of the profession moving towards a paradox of the information age.
He said, “…it should surely mean we can gain access to all but only the information we need, but the reality seems to be that we are less informed and focused than in the past.” He spoke of “information overload” even back then.
More than three decades the so-called paradox he spoke of is evident and it is hugely compounded by the digital age as it continues to build momentum.
The Access Legal blog post, Taking law firm business intelligence to the next level looks at the age-old principles of the legal sector was built upon, and how for generations the profession has led the way in ‘making data pay’. However, it highlights that there is more to be done in terms of using law firm data to get closer to clients and prospective clients to bolster understanding, in order to grow legal Practices.
How can technology help law firms work their data?
Good Practice: connect your data and differentiate your law firm is a good read for any law firm wishing to make more of their data.
A good legal practice management system should come with a range of standard reports you will find useful and a suite of reporting tools so that your people can slide and dice your data themselves.
Access Evo is new technology on the horizon that we are working very closely with law firms to develop. This is about providing firms of solicitors with a space for focus, simplicity and confidence – where they can bring together all of their people, make sense of all of their data and access all of their multiple systems, from one place with a single secure sign-on.
Read our follow-up article: What are the 5 biggest challenges facing the legal profession in 2025?
In Conclusion
So whether you and your colleagues view the ten points highlighted in this blog for law firms as ten challenges to overcome or ten opportunities to get ahead of the competition, it is clear that the innovative use of tech will help the profession go a long way to solving most of them. Having a trusted software supplier with a large and knowledgeable team that works together on law firm tech every day, will certainly help move things forward faster for the legal profession.
Access Legal, is a legal software supplier for law firms. It has brought together through acquisition, six of the leading companies from the legal software, technology and compliance space, employing 400+ people with legal tech experience going back almost three decades in some cases. Over 55,000 organisations rely on Access software to help their organisation thrive, including 3800 law firms. Access Legal offers three flavours of practice and case management software, managed IT services and cloud hosting, a vast range of legal compliance and learning products as well as a first class set of conveyancing search tools and related products.
To find out how Access Legal can help you overcome many of these problems, and even turn some of them into opportunities, book a consultation with a legal software and/or compliance expert today, or download our brochure for more information.
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