OneAdvanced Legal Trends Report 2026: From AI ambition to operational reality
Despite sustained funding in legal technology over the last decade, a gap between innovation and impact remains — nowhere is that disconnect more visible than in AI adoption, finds OneAdvanced’s Annual Trends Report 2026
As the legal sector looks ahead to 2026, one thing is clear: AI is no longer an emerging technology on the horizon. It has become the connective tissue binding law, regulation, risk and commercial decision-making. This year, OneAdvanced’s Annual Trends Report marks its tenth edition by reflecting on a decade of disruption, offering a candid assessment of where the legal sector stands today and assessing what must change.
AI at the centre of a converging landscape
The report paints a picture of the legal sector operating within a rapidly shifting macro environment. Political uncertainty, changing regulations, rising cyber threats and evolving client expectations are no longer separate forces. Instead, they are converging and amplifying one another, with AI sitting firmly at the centre.
AI is already reshaping how legal work is done, from accelerating case preparation and contract review, to exposing compliance risks and supporting ESG-related litigation. At the same time, it is forcing firms to confront difficult questions around accountability, ethics, data protection and trust. Courts, regulators, law firms and in-house teams are being challenged not just to adopt new technologies, but to govern them responsibly.
Digital transformation: progress without payoff
Despite sustained investment in legal technology over the past decade, the report reveals a persistent gap between innovation and impact. Many firms remain constrained by outdated case management systems (CMS), fragmented platforms and disjointed workflows. More than 60% of respondents report a software integration crisis, while nearly two-thirds describe themselves as stuck in “automation purgatory” — having made some progress, but failing to achieve meaningful transformation.
This lack of integration has real consequences. Poor visibility into workflows and back-office processes continues to slow decision-making, stall productivity gains and limit the ability to scale. While a minority of firms have achieved highly automated and integrated operations, the majority sit in the middle and are at risk of falling behind more agile competitors.
The perception gap in decision-making
One of the most striking insights in the report is the growing perception gap between leadership and operational teams. Senior partners are significantly more likely than practice managers, or other legal professionals working in legal firms, to believe that technology investments are delivering value and enabling data-driven decisions.
In reality, while data is abundant, insight is not flowing evenly across firms. Senior executives may benefit from advanced dashboards and reporting tools, but many are lacking this visibility day-to-day. Without bridging this gap, firms risk undermining the very investments designed to improve consistency, speed and confidence in decision-making.
AI ambition outpacing execution
Nowhere is the disconnect more visible than in AI adoption itself. Nearly half of the firms surveyed believe they are currently ahead of their competitors when it comes to AI, and overall, it is ranked as the number one strategic priority for the legal sector. Despite this, more than half of the firms surveyed report that, less than 25% of their work is actually AI-enabled. This suggests a huge misconception on what ‘being ahead’ should look like and reflects how far behind the industry still is.
This ambition-execution gap also highlights a broader truth: AI tools alone do not deliver transformation. Without the correct strategy and integration into workflows, clear use cases or firm readiness, AI remains limited to isolated tasks rather than driving systemic change.
A workforce readiness crisis
Perhaps the most critical challenge identified in the report is the widening digital skills divide. While firms are accelerating investment in AI and technology, talent development ranks near the bottom of strategic priorities. Skills gaps are widely acknowledged as one of the top operational challenges, yet training and workforce development continue to lag far behind technology spend. This imbalance creates a bottleneck in collaboration — without giving employees the skills to use AI effectively, firms will not benefit from their technology investments.
Measuring value in a high-risk environment
Finally, the report highlights the growing difficulty of measuring digital value amid rising cyber threats and economic uncertainty. While many firms are seeing clear benefits from cloud collaboration, process automation and decision-supporting tools, internal execution issues and security concerns continue to impact confidence.
Shaping the next decade
The Legal Trends Report 2026 makes one message unmistakably clear: AI is not replacing the challenges of the past. Integration, governance, skills and trust will determine whether legal organisations merely adapt to change or actively shape their future.
For legal leaders, the next phase of transformation will require more than new tools. It will demand aligned strategy, operational realism, and a renewed focus on people. The full report is available to download now, offering deeper insight, data and guidance for those ready to define what the legal profession becomes in the decade ahead.
