New ALM Research Finds that Attention to Innovation in Law Firm Management is Growing Significantly Among the Am Law 200

A new report on innovation in law firm management has found that a growing number of Am Law 200 firms understand innovation investments in firm management facilitate innovation elsewhere

NEW YORK, Sept. 25, 2025 /PRNewswire-PRWeb/ -- As ALM Law.com Compass Pacesetter Research updates its annual reports on innovation in law, the newly-released "Innovation in Firm Management" report finds that as law firms experiment with AI and other forms of innovation, a growing number are making the connection between the performance of those innovation investments and the need for operational and management efficiency to support them. This has put innovation in law firm management front-and-center.

"Investing in law firm management innovation is not sexy," quipped Tomek Jankowski, Director of Law.com Compass Pacesetter Research. "But it is an absolute necessity to enable success with the higher profile, client-facing types of innovation investments law firms are more interested in."

However, while investment in law firm management is increasing across the board, the focus of those innovation investments is not uniform, and the Am Law 200 firms are clearly in experimentation mode to identify which innovations in firm management produce the most effective returns. Another interesting element about innovation in law firm management is that the kinds of challenges firms are grappling with (like partner compensation models) are not easily addressed through technology, requiring a more human capital and process-oriented approach.

This report examines innovation in law firm management across six core component categories (professional business leadership, internal-facing legal operations, talent strategy, internal-facing project management, a defined innovation strategy, and business model).

Key trends identified in this research include:

• While the AM Law 200 are in the lead with innovation investments, all things are not equal, and the Top 50 firms (with a median overall Pacesetter Innovation score of 54.2%) are clearly pulling ahead of the rest (with the Bottom 50 landing a median overall Pacesetter Innovation score of 33.3%)
  
  
• Of the six component categories in law firm management that the Pacesetter Research team examined for this report, the one that overwhelmingly attracted the most investment in 2025 was in business structure/model, although the component categories garnering the largest number of top scores were internal-facing project management and a defined innovation strategy
  
  
• The breakout of score distributions among the four basic groups of Am Law 200 firms (i.e., Top 50, 51-100, 101-150, 151-200) differ significantly, reflecting a wide array of innovation investment priorities
  
  
• More firms in the 51-100 Am Law 200-ranked group achieved the highest scores than any other group
  
  
• Innovation in professionalized business leadership is a sorely-neglected component category across the board

Law.com Pro and Law.com Compass Subscribers can now access the new reports by going to: http://www.law.com/compass.

About Law.com Compass Pacesetter Research

Law.com Compass Pacesetter Research provides independent, objective research to competitors in law markets relevant for both service providers and buyers alike, examining how innovation can inform decision-making processes. The ultimate focus for Pacesetter Research is how law firms (and their competitors) use innovation to have real client impact, to move the needle meaningfully for clients and other key stakeholders.

About ALM and LBR

ALM and LBR recently merged to form the premier global information and intelligence company serving the legal industry. Together, they provide unmatched coverage of legal news, proprietary data, performance benchmarking, and strategic insights, all built to support the business and practice of law. From global law firms to in-house legal departments, over 7 million legal professionals rely on ALM and LBR for the tools, research, and connections that drive results.

Media Contact

Janeanne Josephson, ALM Law.com, 2124579582, [email protected], Law.com

SOURCE ALM Law.com