Small Law Firms Poised to Lead the Charge in AI Adoption, According to New CosmoLex AI Study

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MOMOUTH JUNCTION, N.J.--(BUSINESS WIRE)--Nov 5, 2025--

CosmoLex, a leading provider of end-to-end legal practice management and payments solutions, today released the results of its new proprietary research study, revealing that small law firms are the most likely to adopt artificial intelligence (AI) tools in their practice management in the next year. Despite their current low levels of AI adoption, small firms are optimistic about AI’s potential to automate time-consuming tasks and improve operational efficiency.

The study highlights a pivotal finding: while small law firms are hesitant to rely on AI in areas where the lawyer’s expertise and client rapport shine, such as contract review, drafting, and client interactions, they are eager to embrace AI solutions to address the more labor-intensive and administrative aspects of their practice. Specifically, of the firms that have already adopted AI tools, 49% cite automated document drafting, 37% cite legal research and e-discovery, and 35% cite client communications as the most valuable applications of AI tools in their workflow.

Key findings from CosmoLex’s research include:

High Demand for Manual Task Automation: Among law firms that have integrated AI, 51% identified document drafting and legal research as the most widely adopted and valued AI functionalities, underscoring a need to reduce time spent on repetitive and routine tasks.

Lower Adoption in Certain Areas: Client intake, automated invoice generation, payment reminders, and predictive reporting/business analytics were reported as the lesser-used AI-powered features, yet areas of future interest for AI to play a role in automating.

Forward-Looking Small Firms: While currently slower to adopt AI compared to larger firms, small law firms are the most likely to integrate AI solutions in the next year, seeing it as an opportunity to drive efficiency without compromising the personalized service that clients value.

“We’re excited about the findings of this research study as it reinforces our commitment to AI-powered features in the CosmoLex roadmap,” said Kelley Castell, CosmoLex CEO. “Our focus has always been on equipping legal professionals with tools that save time, streamline operations, and allow them to spend more time on what matters most, delivering exceptional client service. We are heavily investing in AI solutions where our customers and prospects need them most, and we’re eager to continue to roll them out on the CosmoLex NextGen platform.”

With this research, CosmoLex is taking a leading role in supporting small law firms as they navigate the rapidly evolving landscape of legal technology. By creating innovative software solutions, CosmoLex aims to empower small and solo law firms to harness AI’s potential while safeguarding the personal and strategic aspects of client-focused legal work.

CosmoLex NextGen, the company’s latest platform, integrates powerful AI tools that decrease time spent on tedious tasks like document creation and research, while balancing the importance of human expertise in legal services. This ongoing commitment positions CosmoLex at the forefront of the legal technology industry, aligning its offerings with the evolving needs of small firms.

To download the CosmoLex AI survey results and learn how AI is helping small and mid-size law firms thrive with cutting-edge practice management solutions, visit www.cosmolex.com.

About CosmoLex

CosmoLex is a leading provider of practice management, billing, and payments software for legal, accounting, and other professional services firms. Built to simplify workflows and improve productivity, CosmoLex integrates cutting-edge technology in a unified platform that meets the unique needs of legal professionals. Trusted by thousands of firms worldwide, CosmoLex helps firms save time, ensure compliance, and focus on client satisfaction.

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KEYWORD: NEW JERSEY UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: LEGAL SOFTWARE PAYMENTS ARTIFICIAL INTELLIGENCE DATA MANAGEMENT SMALL BUSINESS PROFESSIONAL SERVICES TECHNOLOGY

SOURCE: CosmoLex

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PUB: 11/05/2025 09:04 AM/DISC: 11/05/2025 09:05 AM

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