Legal tech sellers

Law firm technology: what firms run in 2026 and when they replace it

Most firms use cloud tools (73% in ABA 2024 data), GenAI became the main focus of firm technology investment in ILTA's 2026 survey, and one in five ILTA firms plan to replace time and billing within 12 months.

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The short answer

Law firms run document management, practice management, time and billing, email and security systems, increasingly in the cloud (73% of firms in ABA 2024 data). In ILTA's 2026 survey of 508 firms, GenAI became the primary investment focus and one in five planned to replace time and billing. Clean finds law firms and legal teams with a real reason to buy what you sell.

Key takeaways

  • ABA 2024 data: 73% of firms use cloud-based legal tools; 60% have formal cybersecurity policies.
  • ILTA 2026: GenAI is the first emerging technology to become the primary focus of firm technology investment.
  • ILTA 2026: one in five responding firms plan to replace time and billing within 12 months.
  • Thomson Reuters Institute panel firms: technology and knowledge management spend up 11.6% in Q2 2026.
  • Replacements usually follow a change: a cloud move, a merger, a new technology leader or a new AI policy.
01

What technology do law firms run in 2026?

Most law firms now run their core systems as cloud tools, and the new money is going to generative AI. In the ABA's 2024 survey, 73% of firms used cloud-based legal tools, with document management and practice management software the most adopted. ILTA's 2026 Technology Survey (released September 14, 2026) puts it this way: "GenAI has crossed from backstage experimentation to center stage production. For the first time in this survey's history, an emerging technology has become the primary focus of law firm technology investment." The same survey found one in five firms plan to replace their time and billing system within the next 12 months.

Those are two separate surveys with different samples, so read each number on its own terms. The ABA surveys its members in private practice, from solos to firms of 500 or more lawyers. ILTA's figures describe the 508 firms worldwide that answered its survey. Below: what each survey says, spending growth, what sets off a replacement and who decides. This page is for companies selling to firms; the legal tech hub maps the rest of the section.

02

What ILTA's 2026 survey says about firm systems

ILTA's 2026 Technology Survey drew on 508 law firms representing over 139,000 lawyers and about 275,000 total users, and was released September 14, 2026. It is a single survey of responding firms, not a census. Six findings matter if you sell into those firms.

  • GenAI is in production. Nearly every responding firm (94%) was using or exploring GenAI, up 14 points from the prior year. The survey says the majority of GenAI-engaged firms now use it for drafting, legal research, document summarization and contract review.
  • Time and billing is in play. One in five firms plan to replace their time and billing system within the next 12 months. Cloud adoption for time and billing rose seven points in a year, to 60%, counting systems already in the cloud or being migrated there within 12 months. ILTA says small and mid-sized firms are ahead on that move, while the largest firms have been slow to put finance and billing in the cloud.
  • Documents, email and backup have mostly moved. The survey describes cloud document management, email and backup as becoming standard practice at most firms, with 80% of firms moving to cloud backup.
  • The desktop refresh is done. Windows 11 went from 55% to 95% as the primary workstation operating system in a single survey cycle, so that project is behind most responding firms, not ahead of them.
  • Cost is now a top worry. The high cost of technology shares top billing among leadership concerns with security compliance and risk management; what that means for vendor reviews is in the law firm vendor security review guide.
  • Governance grows with firm size. A formal GenAI policy was in place at 57% of firms under 50 lawyers and 98% of firms with 350 to 699. Required training before use ran from 11% at the smallest firms to 72% at firms over 700 lawyers.
03

What the ABA's 2024 survey says about firm size and budgets

The ABA's 2024 Legal Technology Survey reaches further down market, and its figures should never be added to ILTA's. The ABA's March 2025 release reported that 73% of firms used cloud-based legal tools, with document management and practice management the most adopted, and that 60% of firms had formal cybersecurity policies.

Firm size changes who buys and how much. In the ABA's 2024 data, 97% of solo practitioners and 90% of small-firm lawyers made their own technology decisions, and 74% of solos spent under $3,000 a year on legal software, while larger firms routinely exceeded $20,000 a year. Half of firms with 100 or more lawyers employed dedicated IT staff or chief information officers. Of all firms surveyed, 65.2% budget for technology, and 53.7% of those said the budget rose from the prior year.

The ABA also asked about AI in a survey fielded October to December 2024: 30.2% of attorneys said their offices were using AI-based technology tools. That is a different question, sample and year from ILTA's GenAI figure; quote each with its own label.

04

How fast is law firm technology spending growing?

Fast, at the firms the Thomson Reuters Institute tracks. The Institute's 2026 State of the US Legal Market report (January 7, 2026) found the average firm's spending on technology grew 9.7% and on knowledge management tools 10.5% in 2025, on top of record growth in 2024. Its Law Firm Financial Index for Q2 2026 (issued August 10, 2026) put technology and knowledge management spending up 11.6% overall and 8.7% per lawyer, "continuing a steady multi-year build".

Those are panel figures from Am Law 100, Second Hundred and Midsize firms (184 US firms in the 2026 market report), not from every US firm. With cost now a top leadership concern in ILTA's survey, showing which existing cost your product removes is typically an easier conversation than asking for new money.

05

Which law firm systems get replaced, and what triggers it?

A replacement usually follows a change: the firm moves to the cloud, two firms combine, a new technology leader arrives, or a client or a policy raises the bar. No source we found ranks systems by how often firms replace them, so the table names what usually triggers each one, not which is replaced most.

For the people behind the third column, read law firm COO, CIO and innovation leaders. For what happens when two firms combine their stacks, read law firm mergers.

Common law firm systems, what usually sets off a replacement and who decides. Figures are attributed to their survey and year; cells marked typical are our reading of how firms commonly work, not a measured figure. The exact path varies by firm.

SystemWhat usually triggers a replacementWho decides
Time and billingA move to the cloud (60% in the cloud or migrating among ILTA 2026 firms, up seven points); a merger that leaves two systems; an aging on-premises install (typical)An administrator runs procurement, testing and implementation and partners are consulted (ALA executive director, 2026); the owning lawyer at small firms (ABA, 2024 data)
Document managementA cloud move, which ILTA (2026) describes as becoming standard at most firms; a merger; AI tools that need well-organized documents (typical)CIO or IT director, whose role includes reviewing "new products and systems" (ALA role definitions, 2018), with knowledge leaders (typical)
Practice management at small firmsGrowth past what the current tool handles (typical); a cloud move, with document and practice management the most adopted cloud tools (ABA, 2024 data)The lawyer who owns the firm: 97% of solos and 90% of small-firm lawyers make their own technology decisions (ABA, 2024 data)
GenAI drafting, research and reviewA new or updated firm AI policy (typical); client expectations (typical); investment focus moving to GenAI (ILTA, 2026)CIO, innovation and knowledge leaders evaluate; a partner committee approves firm-wide rollouts (typical)
Email, devices and securityClient security questionnaires (asked of 50% of respondents at firms over 100 lawyers, ABA 2023 data); an operating system refresh (typical)CIO or IT director with security; partners for large spend (typical)
Knowledge managementA new chief knowledge or innovation officer; GenAI projects that depend on firm know-how (typical)Chief knowledge or innovation officer with the CIO (typical)
06

What does replacing a time and billing system involve?

More people than the software buyer expects. Writing in June 2026, the Association of Legal Administrators' executive director said partners should be consulted over a change in billing software, while an administrator runs procurement, testing and implementation. So the person you demo to is often not the person who signs, and partners who are consulted can still slow it down.

Typically, a billing change touches everything the firm bills from: matter and client records, rate tables, unbilled time, client billing rules and the reports partners read every month. That is one reason firms often pair it with a bigger move, such as a cloud migration or a merger.

If you sell billing, payments or anything that reads billing data, ask early which system the firm runs, when it went in and whether a replacement is already on the plan. If one is, you are selling into a project with an owner and a budget, not asking for new attention.

Common questions

What software do law firms use?

Most firms run document management, practice or matter management, time and billing, email and security tools, plus generative AI tools. In the ABA's 2024 survey, 73% of firms used cloud-based legal tools, with document management and practice management the most adopted. In ILTA's 2026 survey of 508 firms, 94% were using or exploring GenAI, and most of those firms use it for drafting, legal research, summarizing documents and contract review.

How often do law firms replace their billing system?

No source we found gives a standard replacement cycle. The best current figure comes from ILTA's 2026 Technology Survey of 508 firms: one in five plan to replace their time and billing system within the next 12 months. Cloud adoption for time and billing among those firms rose seven points in a year to 60%. Replacements typically follow a cloud move, a merger or an aging system.

What is in a typical law firm tech stack in 2026?

A typical stack has a document management system, practice or matter management, time and billing, email and backup, security tools, and desktops on Windows 11, which went from 55% to 95% of ILTA's 2026 respondents in one survey cycle. GenAI tools sit on top, and ILTA's 2026 survey says an emerging technology, GenAI, became the primary focus of firm technology investment for the first time.

Are law firms moving to the cloud?

Yes. In the ABA's 2024 survey, 73% of firms used cloud-based legal tools. ILTA's 2026 survey says cloud document management, email and backup are becoming standard practice at most of its 508 responding firms, while time and billing lags: cloud adoption there rose seven points to 60%. The two surveys use different samples, so quote each figure with its own source.

How fast is law firm technology spending growing?

At the firms the Thomson Reuters Institute tracks, quickly. Its 2026 State of the US Legal Market report found the average firm's technology spending grew 9.7% and knowledge management spending 10.5% in 2025. Its Q2 2026 Law Firm Financial Index put technology and knowledge management spending up 11.6% overall and 8.7% per lawyer. Those are panel figures from Am Law 100, Second Hundred and Midsize firms, not all US firms.

Sources

  1. 01The ILTA Technology Survey 2026 Executive Summary, International Legal Technology Association, 2026-09-14
  2. 02ILTA Releases 2026 Legal Technology Survey Results: Revealing the Year Ahead, International Legal Technology Association, 2026-09-14
  3. 03ABA releases new survey on legal tech trends, American Bar Association, 2025-03
  4. 042024 Solo and Small Firm TechReport, American Bar Association, Law Practice Division, 2025-04-21
  5. 052024 Budgeting and Planning TechReport, American Bar Association, Law Practice Division, 2025-04-22
  6. 062024 Artificial Intelligence TechReport, American Bar Association, Law Practice Division, 2025-04-25
  7. 072023 Cybersecurity TechReport, American Bar Association, Law Practice Division, 2023-12-18
  8. 082026 Report on the State of the US Legal Market: Peak prosperity and the fault lines below (report PDF), Thomson Reuters Institute and Georgetown Law, 2026-01-07
  9. 09Q2 2026 LFFI: A heavier load, yet a faster crossing (Law Firm Financial Index PDF), Thomson Reuters Institute, 2026-08-10
  10. 10How Legal Administrators Are Driving the Future of Law (by the Association of Legal Administrators' executive director; Mediaplanet, Careers in Law), Mediaplanet, hosted by the Association of Legal Administrators, 2026-06-18
  11. 112018 ALA Compensation and Benefits Survey excerpt: benchmark job descriptions, Association of Legal Administrators, 2018

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