AllRize 2025 Legal Technology and AI Adoption Report: Most Law Firms Miss Obvious Path to Seamless AI and Legal Tech Integration


Survey Reveals 89% of Firms Already Use Microsoft Tools—Yet Fail to Leverage Them for Strategic AI Deployment and Operational Efficiency

Fort Lauderdale, FL – October 22, 2025 – AllRize today released findings from its 2025 Legal Technology and AI Adoption Report, revealing a critical disconnect in how law firms approach technology strategy. While 61% of firms have adopted AI and 89% rely on Microsoft for their everyday productivity tools, most are failing to connect these two realities—leaving significant efficiency gains on the table.

The survey, conducted among nearly 100 law firms across the United States, exposes why many AI implementations underdeliver: fragmented systems prevent the seamless integration that turns technology investments into real competitive advantage.

Key Findings

The Microsoft Foundation is Already There—But Largely Untapped.  Nearly 9 in 10 law firms (89.2%) depend on Microsoft for their core productivity tools—Word, Excel, Outlook, Teams, and now Copilot. Yet despite this near-universal reliance, only 2.4% of firms report achieving seamless AI integration across all applications. The report identifies this as a missed strategic opportunity: firms already possess the foundation for cohesive, secure AI deployment across their application infrastructure but haven’t yet taken advantage of that.

Software Fragmentation Is Costing Firms Real Money.  The average firm juggles 5-10 different applications to manage operations, yet only 41.2% are satisfied with how these tools work together. This fragmentation directly impacts the bottom line: nearly 40% of legal professionals’ time is consumed by administrative tasks that could be automated within an integrated Microsoft ecosystem. At average billable rates of more than $300/hour, this inefficiency costs firms thousands annually per employee.

AI Adoption Without Integration Leads to Shadow IT and Security Risk. The report reveals a troubling pattern: 38.8% of firms have no AI integration with existing applications, while another 31.8% report only limited integration. This “shadow AI” adoption—where employees download tools independently—adds complexity and introduces security vulnerabilities. A consolidated Microsoft-based approach would address both the integration barriers (cited by 52.9% as resistance to change) and the security concerns (cited by 33.3% as the primary obstacle to broader AI adoption).

Where AI Could Deliver Immediate Impact. More than 43% of legal professionals report that AI saves anywhere from 1-8 hours weekly on non-billable administrative tasks, while 34.2% haven’t measured their time savings. The report identifies document management (priority for 54.1% of firms), case management (44.7%), and billing (43.5%) as the top operational pain points—precisely the areas where Microsoft-integrated legal tech and integrated AI capabilities could deliver transformative efficiency gains and eliminate manual workflow steps.

Smaller Firms Already Leading the Way.  Interestingly, 66% of survey respondents work at smaller firms (under 50 employees), and these practices demonstrate greater agility in technology adoption. Yet they face the same fragmentation challenges as larger firms. A unified Microsoft strategy would provide smaller firms with enterprise-grade capabilities while preserving the agility that makes them innovation leaders.

The Strategic Opportunity

The report makes clear that law firms’ next competitive frontier will be defined not by which firms adopt AI first, but by which firms integrate it best. The data points to an obvious solution: consolidate technology strategy around the Microsoft ecosystem that 89.2% of law firms already know and trust.

This approach would simultaneously address three of the profession’s most pressing challenges: reducing the 27.1% of professionals who cite excessive workload as their primary stress, minimizing the 52.9% resistance to change by keeping familiar interfaces, and strengthening data security through enterprise-grade cloud architecture.

“Law firms are closer to achieving true digital transformation than they might think,” said Franklyn Jones, CMO at AllRize. “In most cases, they’ve already invested in Microsoft productivity tools across their entire organization. The next step is to leverage that foundation as the platform for strategic AI deployment and legal tech integration. Firms that make this connection will not only simplify their application infrastructure, they’ll also empower employees with the AI-powered tools needed to increase billable hours and deliver superior client service.”

Download the Full Report

The complete 2025 Legal Technology and AI Adoption Report is available for download here. The report includes detailed analysis of technology adoption by practice area, Microsoft integration opportunities, five essential recommendations for law firms, and actionable insights for legal technology decision-makers.

About the Research

This survey was conducted among approximately 100 law firms across the United States, with representation from firms of all sizes, practice areas, and billing models. Respondents included partners, associates, paralegals, administrative staff, and firm leadership. The survey examined technology adoption patterns, AI usage, operational challenges, and workplace dynamics in the legal profession.

About AllRize

AllRize is a privately held software company that provides digitally powered law firms with a comprehensive, AI-powered practice management system. The AllRize SaaS platform is built natively on Microsoft Dynamics 365 technology, integrates seamlessly with Microsoft office productivity tools, and is hosted on Microsoft Azure. The platform includes separate modules for Marketing, CRM, Matter Management, Document Management, and Accounting. These modules can be deployed one at a time, or together as a completely integrated system. Each module is powered by customized Generative or Agentic AI technology based on Microsoft Copilot. Learn more at https://allrize.ai/.

Media contact:

Franklyn Jones, CMO, AllRize

franklyn@rizeware.com

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