The Rise of Legal Technology: Predictions and Reflections for 2026

In a recent discussion with Lawfront’s CIO, Tony McKenna, Legal IT Insider explored the notable developments in legal technology for the year 2025 and anticipated trends for 2026. This year marked a significant increase in the adoption of innovative legal technologies, notably Microsoft’s Copilot, as licensing restrictions were relaxed.

Highlights of 2025:

– Microsoft Stack Utilization:
McKenna emphasized the firm’s strategic shift towards leveraging the Microsoft ecosystem, including extensive work with the GenAI platform Jylo. However, he highlighted the challenges posed by competing GenAI solutions, where justifying investment can be complex.

– Proprietary AI Tools:
There’s been a noticeable market shift towards developing proprietary AI tools. McKenna underscored the importance of long-term investment and support for these systems, advocating partnerships with external providers who understand business challenges.

– Community Achievements:
The legal technology community celebrated significant milestones, including a successful year for ILTA with conferences held in Washington and London, alongside Legal IT Insider’s 30th anniversary.

Anticipations for 2026:

– Focus on Microsoft Integration:
McKenna predicts a heightened focus on Microsoft technologies, particularly SharePoint, to unlock new AI-driven possibilities. He anticipates rapid advancements in this area.

– Ethics and Governance:
Strategic advisor Jenifer Swallow discussed key themes for 2026, highlighting the intersection of AI with ethics and governance. The conversation emphasized shifting from focusing on AI’s hallucination risks to broader risk management strategies.

– Standardization and Competence:
A trend towards standardizing legal processes and adopting frameworks is expected. Swallow predicts increased retention of work in-house, facilitated by technology rather than external counsel.

– Technological Milestones:
Paul Greenwood, CTO at Clifford Chance, reflected on the year as transformative for technology. The firm achieved significant milestones, including the widespread adoption of Microsoft Copilot and the launch of the Clifford Chance Assist tool on Microsoft’s Azure OpenAI platform.

– Future Roadmap:
Greenwood highlighted the firm’s three-pronged approach to technology adoption and the challenges established vendors face, needing to demonstrate progress while new AI-enabled startups emerge.

Conclusion:

The discourse around legal technology in 2025 has set the stage for transformative changes in 2026. As law firms continue to embrace AI and digital transformation, the emphasis on ethical governance, proprietary tool development, and strategic partnerships will be crucial.

Note: This article is inspired by content from https://legaltechnology.com/2025/12/23/2025-26-reflections-predictions-tony-mckenna-lawfront-a-significant-increase-in-genai-adoption/. It has been rephrased for originality. Images are credited to the original source.

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