How mid-sized law firms can adapt and thrive

Clio’s Legal Trends Report has offered insight into factors shaping the legal profession since 2016. It’s helped legal professionals make sense of a rapidly changing landscape by tracking everything from billing models to AI adoption and client expectations.

Now, we’ve taken a closer look at how mid-sized law firms are adapting and thriving. The newly released 2025 Legal Trends for Mid-Sized Law Firms report explores how these firms are approaching growth, pricing, marketing, technology and more.

Discover some of the key findings below.

Higher billing rates and charging more

It’s no surprise that larger teams need more flexible pricing – but this year’s report shows just how nuanced mid-sized firms have become with their billing strategies.

Nearly all mid-sized firms use multiple hourly rates for both lawyers and non-lawyer professionals – far more than smaller firms.

Not only that, but they also charge higher rates on average and show greater variability between junior and senior team members.

At a glance, 99% of mid-sized firms set multiple billing rates for lawyers, compared with 85% of smaller firms. On average these firms use eight rates for lawyers and nine for non-lawyers.

AI use skyrockets

Use of AI in legal practice has gone from fringe to mainstream in the space of a year.

A staggering 93% of mid-sized firms now use AI, and more than half (51%) have adopted it widely. Over 80% of lawyers also believe AI use will increase in the next 12 months.

Whether it's legal research, drafting or task automation, these tools are being embraced for the time, cost, and productivity benefits they offer.

Mid-sized firms also report that they believe more strongly in AI’s potential to boost client engagement and expand capacity.

Popular tools include AI legal research platforms (66%), document automation (60%) and eDiscovery solutions (53%).

Fixed fees and subscription models on the rise

Fixed fees are now the most common billing method among mid-sized firms, edging out hourly billing and giving clarity on costs for clients.

Use of subscription models is increasing too. These are used more frequently by mid-sized firms than smaller counterparts. Both approaches reflect a shift towards predictability and transparency for clients.

Fixed fees are offered by 64% of mid-sized firms, while 54% still use hourly rates. Subscription services are now used by 27%, with 82% of those using flat fees applying them to an entire matter, not just specific tasks.

Client intake tools take off

Referrals may still be the biggest source of new leads, but mid-sized firms are investing in websites, SEO, social media, and reviews to attract business.

Those using client intake tools for onboarding new clients and task management are seeing positive results.

Firms using e-signatures, online scheduling and intake forms reported higher revenues, improved conversion rates and quicker time to hire.

Firms using online schedulers saw a 15% improvement in time to hire, with revenue 20% higher in firms using digital intake tools.

Only 16% of mid-sized firms rely solely on referrals, compared with 51% of smaller firms.

Investing by spending smarter

Staff salaries are the single biggest expense for mid-sized firms, taking up 41% of overall spend.

But, interestingly, firms are investing more in software, putting nearly twice the percentage of revenue towards it than previous benchmarks suggest.

Cloud-based tools like data storage, e-signatures, and payments are widely used but use of legal practice management (LPM) software adoption is lagging.

Only 38% of mid-sized firms use LPM tools, compared to 71% of smaller firms. This is a missed opportunity for those looking to streamline operations.

A breakdown of spend shows software at 2% – almost double the traditional estimate. Marketing and rent come in at 5% each

Evolving for the future

Mid-sized firms are no longer trailing when it comes to innovation. From embracing AI to overhauling billing models, they’re evolving fast – and making strategic investments to stay competitive.

But there’s still work to be done. Adopting cloud-based practice management tools could be the next big win, with the potential to bring greater efficiency, better data visibility and stronger client service to mid-sized firms.