Small steps, big impact: how SME law firms are making legal tech work

As law firms navigate rising demands, evolving client expectations, and increased competition, technology is becoming a key enabler of growth and differentiation. Automation, data analytics, and artificial intelligence offer opportunities to improve efficiency, strengthen decision-making, and deliver more responsive, client-focused services.

For SME law firms, the priority is turning this potential into measurable impact: success is driven not just by the technology, but by how firms approach planning, implementation, and change management.

To explore these themes, Osprey Approach has drawn insights from several episodes of its Empowering Law Firm Leaders podcast series. Across these conversations, law firm leaders and experts share practical advice on how SME law firms can make legal technology work effectively and reap long term benefits.

Planning before implementation

Preparation is often the first determinant of project success.

Podcast guest David Langdon, legal technology consultant and author of Beyond the Features, explains during his podcast that many firms rush into selecting software without defining the outcomes they hope to achieve. “You need preparation and an understanding of what’s needed before you begin,” David says. He stresses that the foundation for success is built long before implementation.

Equally important, David notes, is ownership of the project. “It really needs to be a business project,” he says. When technology initiatives are treated solely as IT exercises, systems risk reflecting theoretical workflows rather than the reality of daily practice. Involving fee earners, support teams, and business services staff ensures the technology aligns with how work is actually done and helps build engagement across the firm.

Choosing technology with intention

Selecting the right solution requires perspective, not just features.

David warns against focusing purely on functionality. “The best solution isn’t the one with all the bells and whistles,” he explains. “It’s the one that quietly helps your firm get things done.” Firms should consider integration with existing systems, supplier support after go-live, and alignment with long-term strategic goals.

On another podcast, Shona Kaye, legal technology consultant and co-founder of Lanterna,  emphasises the importance of stepping back before making investment decisions. “Step back and assess who you are as a firm,” she advises. “You need to make sure the technology fits the reality of your business.”

Shona also highlights organisational readiness. Technology investment is never just the cost of the product itself. Firms must ensure they have the right team, time, and capability to deliver the project effectively. Without these elements, even promising initiatives can lose momentum.

Building momentum through incremental change

Sustainable progress rarely comes from “big bang” transformation.

Shona draws a parallel with Sun Tzu’s The Art of War, noting that strategic preparation is just as important in legal tech projects as it was on ancient battlefields. “Opportunities are multiplied as they’re seized,” she says. By delivering small improvements across departments, firms demonstrate progress while keeping risk manageable. Early wins also help build confidence and encourage wider participation.

This approach encourages experimentation. Shona advocates testing ideas early and learning quickly. “Fail fast,” she explains. By learning from small setbacks, firms can adjust course without jeopardising an entire programme.

Unlocking value through data and AI

Many SME firms are still exploring the potential of the data they already hold.

Graham Moore, founder and managing director of Katchr, notes during his podcast episode that most firms are “just scraping the surface.” He describes four stages of analytical maturity—descriptive, diagnostic, predictive, and prescriptive—highlighting that prescriptive analytics can actively recommend actions to achieve business goals. Yet Graham cautions that success depends on building trust in the data. “If people don’t trust the data, they’re never going to trust the outcomes.”

Artificial intelligence is also reshaping firm operations. Podcast guest Uwais Iqbal, founder of Simplexico and former senior data scientist at Thomson Reuters, believes AI should complement legal expertise rather than replace it. “AI is not competitive to what lawyers are doing, but it’s very complementary,” he says. By reducing administrative burdens, AI allows lawyers to focus on complex legal reasoning and client relationships.

Uwais notes that SME firms may benefit most from AI adoption. With fewer organisational layers, smaller practices can experiment with targeted use cases and implement solutions more quickly, avoiding the sunk costs often seen in larger firms.

Technology as part of a resilient strategy

While technology is crucial, it delivers maximum value when integrated into a broader strategy.

Kate Burt, founder and CEO of Hive Risk, stresses during the podcast that resilience comes from aligning vision, people, and processes around a clear purpose. Technology can then support operational efficiency, strengthen compliance, and enhance the client experience. “The rise of AI, innovative tools, and changing client expectations means firms need to be at the forefront of what they’re doing,” Kate says.

For SME law firms, these insights underline a key point: digital transformation is not about chasing the latest tools. It requires careful planning, strong leadership, and a culture that encourages experimentation and continuous improvement. When approached with clarity and intention, legal technology becomes a strategic asset—helping firms operate more efficiently, deliver better client outcomes, and build sustainable growth.

Amy Bruce is marketing director at Osprey Approach