Global Report 2026

Profitability In Law

The LEAP Profitability in Law: Global Report 2026 examines the experiences of 700 legal professionals across six major markets, revealing what drives profitability in today's legal landscape, straight from those navigating it daily. Drawing on insights from Australia, New Zealand, the United Kingdom, Ireland, the United States and Canada.

The report explores profitability through four interconnected pillars: strategy, people retention and wellbeing, technology and systems, and AI and responsible integration.

For many firms, the challenge is not recognising these factors but understanding how they work together and where to focus efforts for measurable impact.

Major Markets

700

Legal Professionals

3500+

Insights

Four Interconnected Investment Pillars

StrategyPeopleTechnologyAI

The Profitability Potential Is There. What's Holding Firms Back?

93% of legal professionals see moderate to high potential for increased profitability, yet pricing pressures and operational inefficiencies continue to get in the way.
Pricing pressure is the number one revenue barrier globally, with 51% citing client-driven pricing as their biggest obstacle.

On the cost side, 44% point to excessive manual admin work as a key inefficiency driver, while 37% struggle with too many fragmented systems.
Nearly half (45%) agree sustainable profitability requires equal attention to both revenue growth and cost reduction.

Firms Know What People Need. Most Just Aren't Delivering It.

Competitive salaries top the list of people investments globally, with 53% citing them as a top priority, yet many firms still struggle to match market rates and keep talent.
Burnout is a moderate concern for 43% of firms globally, with 1 in 10 reporting it is actively causing retention issues or staff turnover.
39% of legal professionals want better tools and technology prioritised for their teams, but only 1 in 3 firms are actually delivering on this.
Training and professional development ranks second overall in people investment priorities, cited by 45% of respondents globally.

Integration Is the Difference Between a Tech Stack and a Competitive Advantage.

66% of legal professionals say their tech stack is advantageous to profitability, yet only 8% describe it as fully integrated through a single platform.
Fragmented systems carry a real cost: 37% cite too many platforms as a key barrier to reducing costs.
32% cite outdated or inefficient technology as a barrier to cost efficiency.
Nearly half of legal professionals (4 in 10) report spending 2-5 hours on manual administrative work, time that could be redirected to billable activity.

AI Is Already Saving Time. The Gap Is in Adoption and Trust.

71% of firms are saving a moderate to significant amount, freeing lawyers from repetitive, non-billable tasks.
Document review, legal research and workflow automation are the leading AI use cases.
Only 38% report high or complete trust in legal tech providers to integrate AI responsibly, with nearly half sitting at moderate trust.
Accuracy concerns, data security and insufficient training remain the top barriers preventing firms from adopting AI more broadly.

Senior Associate, US | 21 - 50 Employees

Key Insights From Each Region

While global trends point to shared priorities, regional differences reveal distinct strategies, challenges and opportunities. Explore key regional differences:

Regional Outlook Reveals a Profitability Confidence Gap

Global optimism around profitability is strong (93%), but the regional picture is more nuanced. That gap reflects deeper differences in how firms across each market approach strategy, technology, AI and people investment.

Conclusions: Key Actions

Close the technology execution gap

Prioritise technology that eliminates manual work, consolidates platforms and connects systems rather than fragmenting them.

Align people investment with retention realities

Close the gap between investment priorities and reality. Build training programmes and knowledge retention processes before turnover creates expertise losses.

Leverage AI with appropriate verification

Move from experimentation to structured AI implementation. Invest in training across all staff and explore platforms with built-in verification and lawyer-in-the-loop workflows.

Address operational inefficiencies systematically

Reduce administrative burden through integrated platforms, ensure proper delegation and shift the conversation toward value and ROI rather than price.

Execute with integrated strategy

Address technology, people and operations together. Prioritise integrated platforms, invest in people and deploy AI strategically.

What's Really Driving Profitability In Law Firms Right Now?

Read the report to benchmark your firm against international peers.