You Don’t Need an AmLaw Budget for Data Analytics & AI

I'll get right to the point: Data analytics and AI aren’t luxury tools for firms with 500 lawyers and seven-figure tech budgets. They’re survival tools for firms with 5, 50, or 150 attorneys who want to stay competitive without burning out or doling out enormous amounts of cash.

This isn’t about chasing shiny objects. It’s about using the right tools at the right price, to make better decisions, serve clients faster, and stop wasting time.

You don’t need a  scientist or AmLaw budget to do this!

What Data Analytics Really Means

Forget the buzzwords and Geek Jargon. Data analytics just means looking at your firm’s numbers e.g. case outcomes, time entries, billing patterns, client types etc. and figuring out what’s working and what’s not. It's not magic. It’s just finding patterns and using them to stop doing things that are a waste of time and start doing thing that make more profits.

Here’s how small and mid-sized firms can use it today:

• Profitability by matter type: Know exactly which types of deals, compliance and cases – as well as what type of clients deliver the most value, not just top-line revenue.

• Timekeeper productivity: Measure who’s actually working efficiently and where hours are getting lost.

• Client forecasting: Use historical data to predict how many cases and deals will close next quarter and use that to plan staffing.

• Bottleneck identification: Spot where client generation and work slows down i.e. whether it’s intake, discovery, or billing.

Data Analytics? You don’t need a full-time data scientist to do this! Start with platforms that already plug into your existing systems:

• Clio and MyCase: Both have built-in analytics dashboards tailored for small firms.

• PracticePanther: Offers time tracking, billing trends, and custom reports for under $100/month.

• Power BI (paired with Excel or your practice software): More advanced, but scalable and affordable.

Use these to get a pulse on your practice. You’ll be surprised what a few key metrics can reveal.

AI Isn’t Optional Anymore

I know I know, you’re getting tired of hearing me say this. Guess what? This material will be repeated.

The good news? You don’t need a custom-built AI platform or a million-dollar war chest to get started. You just need one or two smart integrations that save you time and sharpen your output.

Take Clearbrief AI for example. It’s built specifically for legal workflows and integrates directly into Microsoft Word. So no fancy training required and I promise you, once your attorneys try it, “Adoption” (whether they’ll use it without being told to) will not be an issue. You draft a paragraph, click a button, and it scans your documents to find the evidence that backs up your argument. It can also create instant tables of authorities, check citations, and flag issues - all in minutes.

Firms are using it to:

• Cut 4–6 hours per brief down to 1 or 2

• Improve accuracy in factual assertions

• Reduce associate burnout and churn
  

And here’s the kicker: it’s priced for small firms. You get enterprise-grade capability for less than one billable hour per month.

Other AI options worth exploring:

• Spellbook AI (contracts and transactional drafting)

• Loio (contract review and cleanup)

• ChatGPT for content writing, email polishing, marketing analysis etc. Do NOT use for any legal matters and always employ Human Eyes Failsafe!

None of this replaces legal judgment. But it absolutely replaces manual drudgery. And for firms with limited resources, that can be the difference between growth and stagnation.

Final Thought & As Always, Predictions

Just Dip the Toe in the Water, to Start You don’t need to overhaul your whole tech stack. Start with one analytics tool and one AI assistant. Use them for 60 days. Measure the time saved. Measure the insights gained. Then decide whether you want to try a bit more.

We’ve seen more rainmaker leave AmLaw’s for small to mid-sized firms than ever in our 30 year history. But the Millennial and Post-Millennial partners with books in the $500K - $5M range, will refuse to stay with or examine joining firms that eschew data analytics and AI.  There is no excuse that the Boomers and Luddites can use anymore. Time to catch up.

Frederick Shelton is a Market Advisor and Legal AI Consultant to law firms, legal MSO's and funds on subjects which include legal AI, ABS models, MSO's and M&A. He can be reached at fs@sheltonsteele.com