Legal tech guide to 2025: 5 innovations to watch
As we head into 2025, organizations face surging external legal demands across transactions, compliance, and regulatory requirements – yet many still lack the visibility needed to control these escalating costs effectively.
Consider this: while legal services can represent one of the largest operational expenses, most teams still manage millions in outside counsel spend through basic spreadsheets and manual processes, or dated e-billing systems. This lack of precision leads to budget overruns, strained law firm relationships, and difficult conversations about value.
This guide looks at the key innovations reshaping legal spend management in 2025. From leveraging AI for deeper insights to continuous data tracking, these tools help teams manage costs more effectively while demonstrating value to the business.
Top 5 legal tech innovations to watch in 2025
Legal and finance teams are facing tighter budgets and higher expectations to get the most out of their resources in 2025. Here are five innovations that are reshaping how legal operations work:
1. Generative AI for legal work
By streamlining processes such as research, contract drafting, and legal intake, AI enables teams to work more efficiently and with greater precision. This advanced automation reduces manual work while helping businesses scale their legal operations.
The application of Gen AI also impacts the traditional approach to e-billing through wider application of AI on time recording or practice management systems. AI is being applied to ensure narratives and time recording are compliant—and in some systems, fully automated with no human interaction at all.
2. Continuous legal spend data monitoring with AI 🔁
AI-powered analytics are changing how legal teams understand their spending. Advanced tools, like Apperio's GenBi, use AI to analyze historical patterns, forecast future costs, and allow teams to query data using natural language. This helps teams identify trends, predict potential overruns, and make data-driven decisions.
3. Automated AI billing checks before invoice submission ⚙
Manual invoice reviews are becoming outdated. Modern e-billing solutions, including Apperio's BillClear, ensure compliance with billing guidelines from the start, reducing disputes and saving time. The automated validation process delivers e-billing benefits without the administrative burden, while improving law firm relationships.
4. Real-time WIP management for AFAs 🔀
The adoption of Alternative Fee Arrangements (AFAs) continues to grow, with a Bloomberg Law survey revealing that 84% of law firms now offer AFAs alongside traditional hourly billing. Flat fee billing remains the most widely used model, reflecting the shift towards greater predictability and value in legal spend.
However, even with a capped or fixed fee, teams need visibility into spending as the AFA progresses. Real-time tracking ensures that any risks—such as scope changes—are identified early, allowing for proactive, constructive conversations with law firms before issues escalate. This approach not only helps control costs within the bounds of an AFA but also strengthens relationships by fostering transparency and mutual understanding.
5. Alternative Legal Service Providers (ALSPs) 📈
Short-term demand for ALSPs continues to rise. These providers help legal teams manage high-volume work and access new technologies unavailable in-house. Combining ALSP expertise with innovative legal spend platforms enables better vendor management and more efficient legal operations.
These tools offer better ways to take control of legal spend and drive better outcomes. But successful implementation requires a clear plan…
Your legal tech roadmap for 2025
Before deploying any new technology, you need a solid implementation plan. Here's how to roll out tools like real-time tracking and automated compliance effectively, with Apperio guiding your journey toward proactive spend management.
🔷Step 1: Set your foundation
Start by identifying your core objectives. Whether it's controlling costs, improving budget accuracy, or enhancing law firm relationships, clear goals shape your technology choices. Apperio's real-time visibility helps teams track progress against these targets, providing immediate insights into legal spend patterns.
🔷Step 2: Run a targeted pilot program
Launch a focused pilot targeting your most pressing spend challenges. Use Apperio's real-time tracking to test workflow integration and identify early improvements. This controlled rollout lets you gather team feedback and resolve issues before full deployment.
🔷Step 3: Get your team on board with training
Even the most user-friendly tools benefit from solid training. Set up a training session that highlights how the tech can make your team’s day-to-day work easier. With Apperio, for example, learning how to monitor budgets across multiple matters or identify potential overspending early on can transform proactive management into a standard practice. Resources like guides, video tutorials, and ongoing support can build team confidence and ensure everyone is on the same page.
🔷Step 4: Measure impact
To track the impact of your new tools, establish metrics that align with your goals. These could be things like budget accuracy, reduced time on invoice reviews, or fewer billing disputes. Apperio's real-time data shows progress against these targets, helping identify areas for refinement. Regular metric reviews ensure your technology investment delivers measurable value.
🔷Step 5: Stay flexible and adjust as you go
Treat implementation as an ongoing process. Schedule regular reviews to assess performance and gather team feedback. Apperio’s continuous spend visibility, enables teams to refine their approach over time, ensuring that tech remains aligned with broader objectives.
To sum up: With this roadmap, your team can approach 2025 with a legal tech strategy that’s proactive, measurable, and adaptable.
But don’t take our word for it. Here are some real results from firms already following this approach.
Real results from firms already using leading legal tech
For firms embracing a tech-driven approach to legal spend, the impact is clear. Here are real-world examples of organizations that have already reduced costs, streamlined processes, and gained valuable insights by implementing these strategies:
Marex: From hours of admin to instant insights
- 90% reduction in legal admin time – Streamlined workflows allow teams to focus on higher-value tasks.
- 30% decrease in law firm invoice delays – Improved efficiency reduces friction in the billing process.
- Finance team now self-serves for accrual data – Teams have instant access to the data they need, when they need it.
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Real-time insight into current and future spend – With visibility into spending trends, teams can make better-informed budget decisions.
Oil & gas corporation: Measurable impact
- 16% reduction in annual legal spend within the first year – Optimized spend management delivers immediate cost savings.
- 10.7x return on investment – The adoption of new tools is already paying off significantly.
- Complete elimination of manual spreadsheet tracking – Automated tracking provides efficiency and accuracy.
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Accurate forecasting for all external counsel spend – Enhanced forecasting capabilities support better financial planning.
These results highlight the potential of legal tech to drive measurable improvements in efficiency, cost control, and decision-making.
Keen to learn more? Read the full case studies here.📕
2025-ready: Leveraging legal tech to stay ahead
The demands of 2025 are pushing legal and finance teams to adopt smarter, more strategic approaches to managing legal spend. With innovations like generative AI for legal tasks, real-time WIP management, and automated compliance checks, teams can make proactive, data-driven decisions that enhance accountability and cost control.
By combining the right tools—such as Apperio’s solutions for real-time visibility and invoice accuracy—with broader strategies like ALSP partnerships and smarter vendor selection, organisations can meet rising challenges while strengthening relationships with outside counsel.
Keen to learn how Apperio can support your team’s goals? Book a demo here today, and see for yourself how transparent, real-time spend tracking can make all the difference for 2025.
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Author:
Dominic Aelberry
CEO