Australia has emerged as one of the world’s most advanced legal markets for artificial intelligence, with 98% of legal professionals now using AI in some capacity—a higher rate than in the US, Canada, or UK/Ireland—according to Clio’s 2025 Legal Trends Report.
Drawing on international surveys of lawyers and the general public, the report reveals that two-thirds of AI-using firms have seen direct revenue growth, with most Australian firms adopting AI tools within the past year. Among those firms, 77% attributed revenue increases to improved efficiency in document generation, workflow automation, and client communications. The report found that growing firms were twice as likely to use automation as stable ones, and nearly three times as likely as firms in decline.
Clio’s COO, Ronnie Gurion, told Lawyers Weekly that nearly every Australian firm now employs some form of legal practice management software—far ahead of the US or UK. Firms with broad AI adoption were almost three times more likely to report revenue growth, particularly when using AI for client intake and document automation.
Clio’s founder and CEO, Jack Newton, described the current shift as a “once-in-a-generation opportunity” for firms to reinvent legal practice:
“Firms stuck in old habits will stall, while those betting on AI and client-first innovation will define the next era. The age of billable hours and hiring sprees is fading.”
Larger firms are increasingly rethinking their operations holistically—moving from isolated AI experiments to full-scale transformation strategies that reimagine client service and internal collaboration.
Neurological Insights: AI Reduces Lawyers’ Cognitive Load
For the first time in its ten-year history, Clio’s report also includes a neurological study conducted with neuroanalytics firm Neuro-Insight. Sixty-three lawyers completed standard legal tasks—client intake, matter creation, and document summarisation—both manually and using Clio’s AI tools.
The findings were striking:
- Emotional strain decreased by 16%, with 93% of participants reporting positive emotions.
- Overall cognitive load dropped by 25%, meaning less mental effort was required to complete routine tasks.
- Using Clio’s “Active Focus” AI feature, participants were twice as likely to produce accurate results, especially when calculating billables or creating new matters.
Gurion said the study was designed to explore the “human aspect” of AI adoption—whether lawyers are happier, more engaged, and more fulfilled using technology. He noted that AI’s ability to ease mental load represents “just the tip of the iceberg,” predicting a future where lawyers devote more time to strategic and creative work.
Clio’s Joshua Lenon, its lawyer-in-residence, summed up the findings:
“The data confirms that AI and legal technology are advancing the profession in measurable ways. Lawyers using the right tools experience lower strain, higher accuracy, and stronger engagement—a foundation for a more sustainable and rewarding future.”
Source: Lawyers Weekly
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