As we enter 2026, law-firm leaders face a reality that is both exciting and unforgiving: technology is now the primary force reshaping how legal work is delivered, how clients evaluate law firms, and how lawyers themselves must be assessed for performance, compensation, and advancement.

Across SRA’s client engagements from boutique litigation firms to 400+ lawyer multi-office practices one theme consistently emerges:

Technology is redefining what “good performance” looks like inside a law firm.

This is not a technology story.

It is a people, performance, and competency evolution story.

According to the 2025 State of the U.S. Legal Market Report by the Thomson Reuters Institute, firms are accelerating investment in AI, workflows, analytics, and digital collaboration to meet client expectations and talent demands.

🔗 Source: Thomson Reuters – 2025 State of the Legal Market

The ILTA 2025 Technology Survey further confirms that transformational technologies especially generative AI are no longer experimental but operational across many firms.

🔗 Source: ILTA 2025 Tech Survey Highlights

Below, SRA outlines the 10 technology-driven shifts that will have the greatest impact on law-firm performance and talent systems in 2026.

1. AI-Assisted Drafting Becomes a Core Legal Skill

AI-powered drafting tools like CoCounsel, Lexis+ AI, Litera Create, and DraftWise are now deeply embedded across transactional and litigation practices.

What used to take hours now takes minutes.

But the work is not easier, it is different.

As AI becomes the starting point for drafting, lawyers are evaluated on:

• The quality of their refinements, not the time to produce a first draft
• Their ability to assess AI hallucinations and logical gaps
• How well they transform AI-generated content into client-ready documents
• Knowledge of when AI should not be used due to confidentiality or complexity

Thomson Reuters found that AI-assisted drafting can reduce first-draft creation by 30–60%, forcing firms to reexamine what “productivity” truly means.

🔗 Source: TR Legal Market Report PDF

2. Workflow Automation Redefines Matter Execution

Platforms like Aderant Expert, vi by Aderant, Litera Desktop, and Clio Manage now automate the core operational steps of legal work.

This includes:

• Matter intake
• Document routing
• Conflict checks
• Notifications
• Versioning
• Approval paths

Lawyers are now evaluated not only on their legal execution, but also on:

• Their adoption of automated workflows
• Their ability to use automation to reduce errors
• Their contribution to consistent matter throughput
• Their collaboration across automated processes

Automation removes ambiguity and reveals inefficiency that manual systems once hid.

3. Passive Timekeeping Eliminates Leakage and Reshapes Billing Behavior

AI-powered time capture is rapidly replacing manual time entry. ILTA reports that inaccuracies in manual entry cause 8–12% in annual revenue leakage.

🔗 Source: ILTA Technology Survey

Auto-capture increases transparency.

Associates and partners are now evaluated on:

• Billing accuracy
• Timeliness of review
• Adherence to client billing rules
• Integrity of time narratives
• Reduced rate of write-downs and disputes

Timekeeping is no longer administrative, it is a measurable competency.

4. Real-Time Dashboards Reshape Performance Conversations

Law firms are increasingly relying on analytics dashboards from Aderant BI, Litera Foundation, and Power BI.

Leadership teams can now see:

• Matter velocity
• Client-rating trends
• Rework frequency
• Work allocation patterns
• Practice profitability
• Staff bandwidth

Thomson Reuters notes that firms using dashboards have more consistent decision-making and clearer performance expectations.

🔗 Source: TR Analytics Insight

Dashboards eliminate subjectivity.

Calibration now depends on data not partner memory.

5. Hybrid Collaboration Tools Become a Performance Category of Their Own

With hybrid work now stable, tools like Microsoft Teams, Slack, Zoom, and Miro are integrated into every matter.

Collaboration behavior is now observable and measurable, including:

• Asynchronous communication habits
• Response times
• Documentation discipline
• Quality of virtual delegation
• Participation in cross-office collaboration
• Proactive updates to matter teams

Performance models must evaluate how lawyers work within digital teams  not just how they work in person.

6. Client Transparency Platforms Change How Clients Judge Quality

Tools like Litify, Clio, and Filevine allow clients to see:

• Real-time matter status
• Upcoming deadlines
• Cost projections
• Communication logs
• Workflows and timelines

Client-facing transparency means delays or inconsistencies are visible instantly.

Performance systems must reflect:

• Accuracy of portal updates
• Reliability of client communication
• Proactive risk escalation
• Responsiveness to client questions

Client satisfaction becomes a data point not anecdotal feedback.

7. AI-Powered Research Elevates the Standard for Analytical Thinking

Platforms like Westlaw Edge, Lexis+ AI, Casetext, and Harvey dramatically accelerate research.

Associates now spend less time searching and more time analyzing.

Evaluation centers on:

• Ability to review and correct AI-generated research
• Strength of legal reasoning
• Creativity in strategy formulation
• Rigor in fact-checking and citation validation

Research excellence is shifting from “how long it took” to “how well it was applied.”

8. Predictive Analytics Reshape Staffing, Deadlines, and Strategy

Predictive analytics help firms forecast:

• Staffing shortages
• Matter duration
• Utilization trends
• Attrition risk
• Client profitability

Thomson Reuters’ Future of Professionals Report highlights how predictive insights now drive firm strategy.

🔗 Source: TR Future of Professionals

Partners and senior associates are evaluated on:

• Their ability to use data to forecast workloads
• Their transparency around bandwidth
• Their participation in data-informed staffing decisions

Performance becomes strategic not reactive.

9. Work-Allocation Technology Reduces Burnout and Increases Equity

Work allocation platforms map capacity, skill sets, interest areas, and DEI priorities.

According to NALP, uneven work allocation remains one of the top reasons associates leave.

🔗 Source: NALP Research

Firms must evaluate:

• Delegation fairness
• Balance of stretch and development assignments
• Transparency around work distribution
• Consistency of staffing across teams

Allocation data becomes essential for partner accountability.

10. AI Governance Becomes a Mandatory Lawyer Competency

Only 22% of organizations have defined AI governance policies.

🔗 Source: Thomson Reuters – Future of Professionals

Competencies now include:

• Ethical use of AI
• Documentation of AI involvement
• Confidentiality awareness
• Risk flagging
• Adherence to firm AI guidelines

AI governance is now intertwined with quality control and risk management.

Conclusion

Across all ten shifts, the theme is clear:

Technology is redefining talent expectations inside law firms.

To stay competitive, firms must update:

• Competency models
• Evaluation criteria
• Upward feedback systems
• Partner calibration processes
• Client feedback integration
• Development pathways

SRA continues to support law firms nationwide in modernizing their performance systems to reflect the new realities of legal work in 2026 and beyond.

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