Large and midsized law firms have traditionally played their own unique roles in the legal ecosystem. Often that meant they didn’t directly compete for the same work, as they dominated different segments of the market.  

Over the last couple years, however, we’ve seen that dynamic start to shift. As we head into 2025, midsize law firms are increasingly vying for matters, clients, and talent that were once considered out of reach, and they’re poised to be more competitive than ever against their larger counterparts.  

Recent tech advances, particularly the generative AI boom, have been gradually leveling the law firm playing field. With thoughtful tech procurement decisions and strategic GenAI deployment, midsize firms are disrupting the traditional law firm hierarchy and finding new sources of competitive advantage.  

While several factors are driving the mid-market’s recent rise, many of them stem from one common denominator: technology.  

Having now passed the two-year anniversary of ChatGPT’s release—aka the entrance of GenAI into the public’s (and legal’s) consciousness—the question for any legal team now is rarely if we incorporate GenAI, but how we do it. And of all the various legal organizations, midsize law firms perhaps have the most to gain from using GenAI.

For starters, GenAI is key to making the best use of existing resources. In the early days of the GenAI, some were focused (however incorrectly) on how the technology might replace human lawyers and reduce headcount needs, particularly at the junior associate levels. While these bleak predictions have yet to come true, midsize firms had far less to lose if they did. Generally speaking, the mid-market has traditionally had fewer resources—human or otherwise—to spare.

Smaller headcounts and budgets have historically made it much harder for midsize firms to take on Biglaw in complex matters that were nearly always staffed by large teams of associates. Now, however, if GenAI can be deployed to do more of the heavy lifting of routine, repetitive work and maximize the workload a single attorney can accurately and efficiently handle, leanly staffed teams at midsized firms are well-positioned to expand their services to larger clients and matters.

Second, midsize firms are in a far better position than large firms to implement and scale GenAI without negative disruption. If you think of digital transformation like steering a boat, implementing GenAI at a large law firm is like trying to turn a massive cruise ship, whereas the same effort in a nimble midsize firm is like maneuvering a speed boat.

Finally, more providers than ever are expanding their offerings to the mid-market, upping the potential for midsize firms to find the right game-changing technology. Tech providers from both ends of the spectrum—those who traditionally served Biglaw and those who historically focused on small and solo law—are increasingly looking to court midsize firms with solutions designed to meet their unique needs.

 Of course, cost remains a significant factor for any organization looking to implement GenAI-powered tools, which often still come with hefty price tags. Given historically smaller budgets and fewer resources, it’s not surprising that cost can be a more formidable barrier for midsize firms to overcome than it is for larger firms with deeper pockets. But if the mid-market is able to budget resources in a way that prioritizes investment in GenAI, they will supercharge their ability to attract larger clients and tackle more sophisticated work, recognizing significant ROI in the long term. 

Beyond GenAI  

While GenAI has a tendency to steal the legal tech spotlight, it’s not the only tech helping midsize firms boost their competitive position in the market.

One of the often-overlooked benefits of GenAI’s surge in popularity is what it’s done to elevate the profile of legal tech offering across the board. With the increased attention paid to real-world use cases for GenAI has come a surge of much-needed AI and technology education in the legal industry. 

As a result, legal professionals are not just learning how to properly and safely use GenAI, they’re often getting a re-education in the tech stacks and solutions they already have at their disposal. And, as it turns out, many of those solutions offer untapped benefits that users didn’t realize they could have been taking advantage of all along. Even without GenAI, “regular” AI, automation, cloud solutions, and other technologies can offer midsize firms some of the same abilities to maximize their resources and empower their employees to operate at an even higher level of efficiency.

Better yet, these solutions typically come with a friendlier price tag, meaning midsize firms can capitalize on the improved productivity, enhanced client service, robust data security, and more that they need to be competitive, but without breaking the bank.  

Flexibility & Quality of Life  

Work-life balance has started to become less of a taboo topic in the legal industry, particularly since the work-from-home days of the pandemic and as younger generations with different priorities enter the workforce. 

What 2020-2021 started in terms of rewriting the rules of work, 2023-2024 advanced. As it turns out, many lawyers love the flexibility that technology can offer, even if not all employers are of the same mindset. As Biglaw firms continue to push return-to-office policies and increase the number of days their employees need to physically be at the firm, the mid-market is in a unique position to make a play for Biglaw talent that might have once been out of reach but is now prioritizing quality of life. 

The mid-market has long had a reputation for offering better work-life balance, and now is the time to lean into that reputation and enhance it with productivity-boosting technology offerings. If midsize firms can also add GenAI to the mix, they stand to be in a highly competitive hiring position for attorneys and other legal professionals who want an employer that reflects the future of legal practice, not the past. 

Serious Competition for Biglaw 

For decades, Biglaw sat in a comfortable position of dominance in the legal industry when it came to prestigious clients, complex work, and top talent. Over time, ALSPs started to challenge that position, with the entry of the Big Four in legal adding another wrinkle. The door is now open for the mid-market to truly make its mark. 

Bolstered by technology, midsize firms are redefining what’s possible and punching above their weight in landing top clients and top talent. As the gap between Biglaw and the mid-market continues to shrink, larger firms that continue to overlook or discount their smaller counterparts would be wise to rethink their approach and see midsize firms as the true challengers they’ve become. 

The historical tradeoffs between working in Biglaw vs. midsize firms—namely complex, exciting work vs. flexibility and quality of life—are evaporating. It’s more possible than ever for top legal talent to have the best of both worlds, and it’s increasingly the mid-market that’s offering it. 

Looking Ahead 

The mid-market's star will continue to rise in 2025 and beyond, and Legaltech Hub is ready to help guide firms through it. With the launch of our Midsize Hub collection of content created and curated specifically for our midsize subscribers, we’ll be covering critical considerations such as: 

• Building the optimal tech stack for a midsize firm; 

• Leveraging CRM systems for client growth; 

• The hidden costs of not investing in legal tech; 

• Using generic project management systems to streamline legal projects; 

• How technology can help scale operations; 

• How a tech-driven approach can boost profitability; 

• How and why legal tech providers are increasingly courting the mid-market. 

And we’re just getting started. Stay tuned for a great, content-filled 2025.