96% of leaders are confident in their firm’s ability to comply with evolving anti-money laundering (AML) regulations but acknowledge staying up to date, ensuring staff are trained, and property completing client due diligence remain key compliance pain points.
Despite a raft of firms being fines in recent weeks the inaugural UK Midsize Law Firm Priorities Report from ActionStep suggests firms feel confident in dealing with their compliance obligations. On the issue of cyber risk and compliance 85% of respondents to the report said they felt prepared to manage cybersecurity threats but see human behaviour (72%) as the biggest risk to their firm’s security.
The report has been produced in partnership with legal publication LPM and includes research from 60 law firm leaders including managing partners, chief executive officers, chief operating officers, practice directors and managers, and heads of law firm support areas representing firms employing 20 to 500 people.
Time Poor
Responding to the survey informing the report, law firm leaders said recruitment (78%) and client growth (60%) were key priorities for their organisations but said time constraints were a barrier to improving client satisfaction; as only one in three identified client satisfaction as a key growth strategy.
70% of respondents said time constraints, and 59% said inconsistencies across the firm were the biggest barriers to delivering better client experiences. While half of firms say they have some automation in place, there is an appetite to increase capacity through more automation of menial processes with three quarters of respondents actively seeking efficiencies through technology adoption. And there is acknowledgment technology has role to play in supporting clients and creating more digital experiences. But while less than two-fifths of firms offer client portals (38%), document collaboration (31%), automatic updates (19%), or digital appointment-setting (12%), key opportunities to enhance efficiency, transparency, and communication with clients are missing say ActionStep.
Human Touch
The report concludes investment in technology can enhance efficiency and appeal to modern talent, but firms need to strike the right balance of leveraging tech to support, not replace, their unique human touch. Although nearly half of respondents (46%) said cost is a major barrier to investing in the technology they need the report suggests midsize firms must similarly consider how they engage with clients digitally but retain a ‘personalised service, including client listening or feedback mechanisms’
Oliver Tromp, UK Regional Vice President at Actionstep, said:
“Midsize law firms play a crucial role in the UK legal market, yet they are often underserved when it comes to tailored research, strategic guidance, and benchmarking tools.
This report serves as a benchmarking tool that enables law firm professionals to compare their approach to that of their peers and provides a clear snapshot of what law firm leaders at midsize firms are prioritising as they explore new technologies, refine processes, and drive transformation to secure a competitive edge.”
The 2025 UK Midsize Law Firm Priorities Report is available to review here
