How SME law firms can tackle the 2025 legal skills shortage

By Gareth Walker, CEO, LEAP UK

The legal landscape is evolving and SME law firms face an ongoing skills shortage that threatens long-term viability. With Gen Z and Millennial lawyers bringing different career expectations and experienced professionals moving toward flexible working or retirement, firms must evolve to attract and retain talent. A 2024 PwC study found that 37% of Gen Z employees considered leaving their roles in the past year. This reflects a broader generational shift toward flexibility, purposeful work, and the use of modern technology. For SME firms, adapting is critical for survival.

The workforce is changing and firms must change too

Today’s legal professionals are rethinking the traditional 9-5. Gen Z and Millennial lawyers prefer flexible or hybrid roles, supported by digital tools using AI that reduce admin and enable meaningful client engagement. Meanwhile, many senior lawyers are stepping away from full-time roles, leaving mid-level expertise gaps. Replacing skilled employees is difficult and expensive. Firms must reassess their employee experience, looking beyond salary to flexibility, work-life balance, and technology adoption. Those who fail risk losing talent to larger, more progressive competitors.

Technology: The problem and the solution

Technology is both a cause and a cure for the skills shortage. Legal software has streamlined tasks once handled by secretaries, bookkeepers, and junior lawyers, creating a leaner workforce where departures are keenly felt. However, cloud-based practice management systems powered by AI can turn this into a firm's advantage. AI-driven tools automate repetitive tasks, freeing lawyers to focus on billable client work.

Winning back talent through flexibility

Many lawyers have left traditional firms but remain in the profession. Offering remote and flexible work supported by cloud-based software allows SME firms to re-engage this skilled group. With integrated tools and AI powered solutions, a workday no longer means long office hours. Lawyers can work around family commitments or travel, boosting satisfaction and reducing burnout.

Empowering the next generation of lawyers

Junior lawyers have higher expectations and can struggle to gain experience. Many firms hesitate to invest in training, but ignoring development risks losing future leaders.

AI-enhanced tools offering integrated guides and templates, enable junior lawyers to upskill independently, reducing the mentoring burden while accelerating career growth.

Automate to let lawyers focus on what matters

Administrative overload drives many lawyers from the profession. Automation software can handle time recording, drafting, billing, and updates, freeing lawyers for high-value legal work. This not only improves productivity but also creates a more rewarding and sustainable environment.

Hiring without borders

For more information click here to download the full whitepaper.

About LEAP

Dedicated to delivering cutting-edge and intelligent legal software solutions, LEAP’s team of specialist developers present innovative AI solutions that automate routine tasks, simplify document management, and enhance decision-making, allowing lawyers to do what they do best - practise law.

For more information, please visit leap.co.uk/legal-ai.