For the modern day law firm, technology is no longer a cost – it’s a strategic imperative. According to research by HSBC in partnership with Briefing, law firms are entering a period where planned technology spending is growing, with firms viewing the function as essential to future success.
The expectations placed on technology leadership are evolving too. Today’s technology leaders must be able to shape business strategy, build innovation and embed new capabilities such as AI, automation and sophisticated data management.
This growing importance is reflected in technology salaries, with Totum’s 2026 Reward report revealing that the median salary for a Chief Technology Officer is now £305,351 – the highest among all chief level salaries.
So how is technology changing law firms?
Tech spend is up – and so are expectations
On average, firms now plan to spend 6.5% of annual revenue on technology in 2025–26, up from last year’s 6.1%. What’s driving this increase? Beyond the obvious push for updated infrastructure, firms are responding to real pressures: demand for better data insights, streamlined processes and strong digital foundations that reduce risk and unlock efficiency.
As spending rises, so do expectations. Yet legal leaders are seeing a return on their investment in technology, with two-thirds believing technology investments since 2022 have delivered good value.
AI has moved from buzzword to business reality
It’s impossible to escape the rise of generative AI. A year ago, only around half of firms expected practical AI use according to HSBC’s report. Now, 70% of legal leaders expect to see AI impacting legal workflows in the next 12 months, with 69% forecasting a similar jump for involvement in client-facing services and products. At Totum, we see a number of law firms adopting and testing a range of AI tools, with platforms like Legora and Harvey being used to streamline legal work and boost productivity.
Even internal business functions are feeling the shift. Firms now expect AI to support finance teams, especially where it can speed up billing, improve pricing insights or reduce manual bottlenecks. Marketing and business development, client reporting and collaboration, and risk management are other areas leaders expect to see an impact from AI.
Security and data are key
Despite the tech focus, firms haven’t lost sight of the human side of transformation. Cybersecurity and talent retention remain top organisational challenges, reminding us that tools are only as good as the people who choose and use them.
Data has also become a major priority, with firms seeking to unlock more value from their existing information. Totum is seeing firms investing in specialist data and architecture teams who are building scalable, cloud-based foundations to support analytics, automation and AI.
“Technology has transitioned from background function to strategic powerhouse across professional services. The firms that will thrive are those that embed technology deeply into their culture, harness AI and automation effectively and invest in forward-thinking leadership to build robust foundations of digital trust,” says Ross Mackenzie, Head of Technology Practice at Totum Partners.
Technology as a leveller
Perhaps the most relevant finding from HSBC’s report is this: technology is becoming a leveller. As more firms deploy similar AI and digital systems, the real differentiator won’t be the tools themselves, but how firms and the people behind them use technology tools.
Firms that can combine technology with smarter pricing, better client experience and strategic talent development will be the ones that stand out. Simply buying technology tools without a strategy for deploying will not work.
Legal technology investment is evolving. Budgets are rising, AI expectations are climbing and leadership teams are increasingly comfortable investing in future capabilities. The next phase for law firms won’t be just about buying technology – it will be about integrating it meaningfully into every part of the business.
Ross Mackenzie is Head of Technology Practice at Totum Partners. To learn more about how technology leadership is evolving, contact him at [email protected]