Best AI Tools for Law Firms in 2025

Attorneys at Big Law giants such as A&O Shearman, DLA Piper, and Gibson Dunn, as well as small to midsize firms nationwide, already use artificial intelligence (AI) to help with legal drafting, research, and billing. The question for other law firm leaders is no longer ‘if’ but ‘which” AI tools will you adopt.

The best AI tools for law firms can transform the way lawyers draft contracts, conduct research, and deliver client services. Firms that hesitate to adopt AI risk falling behind their peers, who now use AI-powered software to cut costs, improve accuracy, and deliver faster results.

In this post, you will learn which AI tools top law firms are using in 2025, how the tools integrate into legal workflows, and ethical best practices for adoption.

Key Takeaways

• Law firms now use AI-powered tools to save time and increase accuracy.
• The best AI solutions meet the needs of specific workflows, including contract drafting, research, litigation, intake, compliance, or billing.
• Responsible adoption ensures law firms reduce the time spent on administrative tasks while protecting client confidentiality and complying with regulations.

AI Tools by Legal Workflow: At a Glance

Effective AI use requires matching the best-suited AI tool to each legal workflow. Here is a quick review of the best-suited legal AI tools for each Workflow/Category:

‍

Top AI Tools by Legal Workflow & Practice Area

Big Law’s top firms are piloting AI for research, compliance, and administrative tasks, with adoption guided by audits, testing, and training. 

Document Drafting & Contract Automation

Using Spellbook, attorneys draft new contracts and clauses, automate reviews, and apply playbooks for negotiation rules directly in Microsoft Word. A clause library helps ensure consistent language use. Spellbooks assists lawyers most during the live contract drafting, redlining and negotiation processes, unlike other CLM systems that offer post-signature contract management. This focus on real-time assistance during the creation and negotiation process is a key differentiator.

By comparison, law firm productivity tools such as LawGeex and Diligen assist most during automated contract reviews. LawGeex applies company policy playbooks to flag risks, while Diligen offers machine learning-powered clause extraction/summaries for review. 

LawGeex and Diligen are review tools that primarily operate on existing documents. Neither integrate directly into Word for real-time drafting. 

Spellbook is a "drafting co-pilot" that works in real-time, within Microsoft Word. It helps lawyers create and edit contracts from the ground up or during negotiation.

 Legal Research & Case Law Analysis

Thomson Reuters CoCounsel Legal (formerly Casetext) is now fully integrated into Westlaw Precision and Practical Law, giving attorneys Deep Research capabilities alongside Microsoft 365 and other document management systems integrations. Firms such as Polsinelli have rolled out this AI-powered legal assistant firmwide to reduce research hours and enhance accuracy.

Harvey AI is widely used by major law firms, including A&O Shearman, for complex legal and regulatory research. Specific “research accuracy” varies by matter and model.

Litigation Support

Lex Machina provides analytics on judges, courts, and counsel. Litigation analytics provides decision support, not guarantees. EverlawAI Assistant enhances eDiscovery with batch summarization, topic detection, coding suggestions, and Q&A, streamlining the review of massive document sets.

Together, these tools help firms process discovery data efficiently, generate actionable insights, and reduce costs in high-volume litigation.

Firm-Wide Collaboration & Knowledge Management

Notion AI is a generic non-legal platform that helps firms manage notes, databases, and workflows with built-in Q&A and search to centralize knowledge. 

Litera Foundation offers law-specific knowledge management by connecting client, matter, and attorney data into a unified platform. Over 60% of Am Law 100 firms and 50% of Global 100 firms (including Bracewell LLP, a leading law firm) now use the Litera Foundation to enhance collaboration and data access.

Due Diligence & Contract Review (M&A / Corporate)

Litera Kira, Luminance, and eBrevia are among the top AI platforms for automating mergers and acquisitions (M&A) due diligence. These tools expedite the review of thousands of documents and enhance risk identification and assessment.

International law firm Bird & Bird used Luminance to review nearly 200,000 employment documents across its offices. The platform enabled review rates to jump from 79 to 3,600 documents per hour.

Client Intake & Communication Assistants

Lawyers can use ChatGPT Enterprise to streamline communication. It ensures data security with SOC 2 Type 2 Security and Confidentiality principles. However, ChatGPT cannot replace the judgment of licensed professionals.

Clio Grow is a hybrid AI solution designed for intake automation, including lead pipelines, online forms, and client workflows, helping law firms manage client relationships efficiently.

Compliance, Risk, and Ethical Oversight Tools

IBM OpenPages with Watson is a governance, risk, and compliance software suite that centralizes risk management across various areas, with AI enhancements in OpenPages 9.1.x for more intelligent workflows and integration. 

LexisNexis Risk Solutions provides anti-money laundering and know-your-customer platforms for identity verification, due diligence, and transaction monitoring. These AI tools help law firms reduce regulatory risk and monitor emerging industry threats.

Billing & Time Tracking Automation

Billing tools help track billable hours to enhance firm efficiency:

• Clio Manage offers native time tracking, LEDES billing, online payments, and comprehensive financial management tools. 
• Smokeball’s AutoTime captures activity passively, helping firms report 10–30% more billable time than traditional methods. 
• TimeSolv is a robust time and billing platform that optimizes billable hours.

These lawyer productivity tools help improve billing accuracy, reduce administrative time, and maximize revenue potential.

How AI Transforms Firm Strategy & Growth

Firms that embrace AI are often viewed as innovative and concerned about improving speed, accuracy, and cost-effectiveness.

• AI reduces research time, allowing firms to scale expertise without additional resources.
• Centralizing knowledge streamlines collaboration.
• Data-driven insights help leaders make more informed decisions and improve client outcomes.

With AI tools for lawyers, firms unlock opportunities for exponential growth and set new standards for excellence.

How to Choose the Right AI Tools for Your Law Firm

No single platform covers every legal workflow. Assess the greatest points of friction in your firm before investing.

• Select tools that align with your firm’s scale and needs.
• Ensure easy integration with existing systems.
• Provide proper training for successful implementation.

For example, use Spellbook for seamless integration with Microsoft Word to streamline contract drafting, improve review accuracy, and enhance contract workflow efficiency without disrupting existing systems.

Human Judgment, Ethics, and Responsible AI Use in Law

The American Bar Association (ABA) discussed the responsible adoption of AI to maintain lawyer accountability. Lawyers using generative AI must carefully evaluate their ethical responsibilities to ensure client protection (Formal Opinion 512).

• Competence and Accountability: Lawyers must understand the risks and benefits of AI tools to ensure competent legal representation.
• Confidentiality: AI tools must not compromise client confidentiality. Informed consent is required for sharing information.
• Communication with Clients: Lawyers must inform clients how AI tools are used in their case.

Responsible AI use preserves the core value of human expertise in legal practice. AI can be a powerful tool. However, it must always complement, not replace, the knowledge and ethical oversight that lawyers provide.

Frequently Asked Questions

What AI Tools are Best for Midsize vs. Large Law Firms?

For midsize law firms, AI tools such as Clio and Smokeball offer cost-effective solutions for case management and document automation. Large law firms can leverage advanced tools such as Spellbook for contract review and predictive analytics, Thomson Reuters Westlaw Precision for AI-powered legal research, and Lex Machina for predictive litigation analytics.

Can AI Tools be Used for Client-Facing Legal Advice?

No. While AI tools can assist in legal research and document generation, they cannot replace licensed legal professionals in offering legal advice. Only a licensed attorney can provide personalized legal counsel.

How Secure are AI Platforms for Handling Sensitive Case Files?

AI platforms used in legal settings must adhere to stringent data security protocols, including encryption, multi-factor authentication, and compliance with regulations such as the GDPR and HIPAA. However, risks such as data breaches and AI mismanagement can still arise if platforms are not adequately vetted or updated.

Do Bar Associations Regulate Law Firms’ Use of AI Tools?

Bar associations are increasingly addressing AI's role in legal practice. The ABA issued its ethics guidance on AI tools in July 2024, emphasizing the need for attorneys to maintain oversight and avoid over-reliance on AI systems to ensure compliance with ethical standards.

Are There AI Tools Available for Legal Billing and Time Tracking?

Yes. AI-powered tools such as TimeSolv, Smokeball, and Clio Manage provide automated time tracking and billing functionalities, helping law firms streamline administrative tasks and ensure accuracy in client invoicing.

Can AI Tools Help My Law Firm Reduce Costs and Increase Revenue?

Yes. AI tools can help reduce operational costs by automating routine tasks such as document review, research, and case management. Additionally, AI-driven efficiencies can improve billing accuracy, client service, and case outcomes, leading to increased revenue.

What are the Biggest Ethical Pitfalls to Avoid when Using AI in Law Firms?

Ethical pitfalls in using AI in law firms include overreliance without oversight, failing to protect privileged or confidential information, using biased or inaccurate AI tools, and lacking transparency in AI decision-making.

‍