Law Firms Are Betting Big on AI and Risk Compliance: What the 2024 Meritas Survey Means for You
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- 67% of law firms globally ranked risk and compliance as their #1 legal technology investment priority in a sweeping 2024 survey spanning 90 countries.
- 57% of surveyed firms named generative AI as their most critical technology strategy issue — and nearly 80% plan to deploy it in some form within five years.
- Document automation is a top near-term priority, with more than 50% of participating firms flagging it as a key investment area.
- Mid-sized firms are building foundational legal software infrastructure first, before layering in advanced AI — a deliberate, measured approach that benefits clients in the long run.
What Happened
In February and March 2024, Meritas — a global network of independent law firms — surveyed 100 member firms spanning 90 countries to understand where legal technology investment is heading. The survey was developed in collaboration with Legaltech Hub (LTH) and later analyzed by Meritas legal tech advisor Corey Garver and LTH CEO Nicola Shaver. The findings paint a vivid picture: law firms worldwide are putting risk management and artificial intelligence squarely at the center of their technology strategies.
The headline number: 67% of respondents ranked risk and compliance as the number one priority for new legal technology investment. Close behind, 57% identified generative AI as the most critical issue shaping their firms' technology roadmap. And when asked about future plans, nearly 80% of participating firms said they expect to implement some form of generative AI within the next five years.
Document automation also emerged as a near-term priority, with more than 50% of respondents flagging it as a key investment area. These are not Silicon Valley predictions — these are practicing attorneys from mid-sized business law firms across six continents signaling a fundamental shift in how legal services will be delivered. The survey's findings were later reported by Canadian Lawyer Magazine, adding to a growing wave of industry data pointing in the same direction. Legal tech spending surged 9.7% in early 2026, according to a State of Legal Market report, confirming that the intentions flagged in the Meritas survey have already started translating into real dollars on the ground.
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Why It Matters for You
If you have ever hired a lawyer and wondered why legal bills are so high — or why getting a simple contract review feels like it takes forever — this survey gives you a window into the forces that are slowly changing that reality.
Think of it this way: a hospital that still uses paper charts is slower and more error-prone than one using electronic health records. Law firms are in the middle of a similar transition — moving from manual, time-intensive processes to systems powered by legal software and intelligent automation. The Meritas survey shows that the majority of firms globally are now actively funding this shift.
Risk and compliance sits at the top of the priority list for a very practical reason. Businesses — and individuals — face more regulatory complexity than ever before. Whether it is data privacy laws, employment regulations, or financial compliance requirements (meaning the rules companies must follow to avoid legal penalties and government fines), law firms are being called on to help clients navigate an increasingly complicated landscape. Legal technology that can flag risks, track regulatory changes, and automate compliance checklists is now a competitive necessity, not a luxury reserved for the biggest firms.
The AI finding is equally significant: 57% of law firms named generative AI — the same underlying technology powering tools like ChatGPT — as their most critical technology issue. This reflects a real-world recognition that AI can dramatically compress the time it takes to do research, draft documents, and perform contract review. Tasks that once took a junior associate four hours might take an AI-assisted system four minutes. That is not hype — that is the practical math law firms are running as they plan their budgets.
But there is an important nuance buried in the data. Nicola Shaver, CEO of Legaltech Hub, noted that mid-sized firms are taking a practical, measured approach — focusing on building foundational infrastructure such as practice management systems, billing platforms, and document management before layering in advanced AI. In other words, they are laying the plumbing before installing the smart faucets. This signals a deliberate, responsible rollout rather than a chaotic race to adopt whatever is newest.
Corey Garver, Meritas's legal technology advisor, flagged another challenge that is easy to overlook: culture. He pointed to reverse mentorship — where junior associates already fluent in AI tools help senior partners adapt — as a key strategy for real-world adoption. Technology is only as powerful as the people using it. If the senior partners billing $500 an hour are not actually using these tools, the efficiency gains will not materialize for clients.
For everyday people seeking legal help, this transition period matters in two concrete ways. First, law firm automation has genuine potential to reduce the cost of routine legal tasks — contract drafting, document review, compliance checklists — which have historically been expensive precisely because they are so labor-intensive. Second, as these tools become standard across the industry, clients will increasingly be able to ask their lawyers: "Are you using AI to make this more efficient?" — and expect a specific, honest answer.
The AI Angle
The legal industry's embrace of generative AI is part of a broader wave reshaping professional services worldwide. The same large language models (AI systems trained on massive text datasets to generate human-like responses) powering consumer tools are being adapted into specialized AI legal tools built specifically for law firm workflows.
Products like Harvey AI, Clio Duo, and Thomson Reuters' CoCounsel are already deployed by firms for tasks including contract review, legal research summarization, and document drafting at scale. The Meritas survey finding — that nearly 80% of firms expect generative AI deployment within five years — aligns with adoption curves seen in the finance and healthcare sectors over the past decade.
Critically, the survey noted that building proprietary generative AI tools is currently out of reach for most mid-sized firms. Instead, firms are licensing third-party legal software and conducting "data hygiene" projects — cleaning up and organizing their internal documents so that data can eventually feed AI systems safely and accurately. This mirrors the infrastructure work that enterprises in banking and insurance completed ahead of their own AI rollouts, and it is a smart, if unglamorous, foundation to build on before scaling up.
What Should You Do? 3 Action Steps
When hiring a law firm for business or personal matters, do not hesitate to ask whether they use legal technology for tasks like contract review or compliance tracking. Firms actively investing in law firm automation are more likely to offer faster turnaround times and more competitive pricing. A firm that can clearly articulate its tech approach is generally a more forward-thinking partner — and one less likely to bill you for hours that a well-configured system could handle in minutes.
Not all AI legal tools are created equal. Some firms use AI only for internal drafting workflows; others use it directly in client-facing deliverables. Ask specifically how AI is being used in your matter, who reviews the output, and how errors are identified and corrected. A reputable firm will welcome these questions — transparency about legal software use is a mark of maturity, not something to dodge.
Legal tech spending surged 9.7% in early 2026 alone, and the pace of change will only accelerate in the years ahead. Bookmark resources like Canadian Lawyer Magazine, Legaltech Hub, and the American Bar Association's annual technology reports. Being an informed legal consumer — someone who understands how law firm automation is reshaping services and pricing — puts you in a far stronger position to ask better questions, compare your options, and manage your legal costs more effectively over time.
Frequently Asked Questions
How is generative AI actually changing the cost of legal services in 2026?
Generative AI is beginning to compress the time required for tasks like document drafting, legal research, and contract review. While full cost savings have not yet reached most individual clients, the Meritas survey found that nearly 80% of law firms plan to implement AI tools within five years — suggesting broader pricing impacts are on the horizon. Routine legal tasks that are traditionally billed by the hour are the most likely candidates for cost reduction as law firm automation continues to scale. The shift will be gradual but meaningful, especially for small businesses and individuals with recurring legal needs.
What exactly does it mean when a law firm says they use AI for contract review?
When a firm mentions AI-assisted contract review, it typically means an AI legal tool scans documents to identify key clauses, flag unusual or potentially risky terms, and compare language against standard templates — far faster than a human attorney working alone. The attorney still reviews and approves the AI's output before anything goes to the client. Always ask who checks the AI's work and what quality controls are in place; responsible firms using established legal software will have clear, specific answers ready.
Are mid-sized law firms safe to trust with AI tools for compliance and risk management?
Yes, with appropriate diligence on your part. The Meritas survey found that mid-sized firms are taking a measured, infrastructure-first approach — investing in foundational legal software before deploying advanced AI on top of it. Many are also conducting data hygiene projects to ensure AI systems work with clean, well-organized information. The key is asking your firm specifically which tools they use, how outputs are reviewed by licensed attorneys, and how your confidential data is protected under their AI workflows.
How can I tell if my law firm is using legal technology responsibly and not just cutting corners?
Ask directly and listen carefully to the answer. A responsible firm should be able to explain which legal technology platforms they use, how attorneys review AI-generated content before it reaches you, and how client confidentiality is maintained across all systems. Law firm automation that lacks meaningful human oversight at every stage is a genuine red flag. Reputable firms will welcome transparency — they should be able to walk you through their tech stack and explain clearly how AI tools fit into their broader quality control process.
Is document automation software worth it for small businesses that need regular legal help?
For small businesses that regularly need routine agreements — NDAs, vendor contracts, employment offers — document automation tools can be a highly cost-effective starting point. The Meritas survey found that more than 50% of law firms themselves are investing in document automation systems, a strong signal that this technology is becoming mainstream rather than experimental. Some platforms offer self-service legal software designed specifically for small businesses, though complex or high-stakes documents — anything involving significant money, liability, or regulatory exposure — should always involve a licensed attorney reviewing the final output before you sign.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney in your jurisdiction.
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