UKResearch
Crowe/ILFM survey: 79% of SME UK law firms earmark AI funds; profit over turnover
Crowe’s annual law firm survey with the Institute of Legal Finance & Management, reported September 16, 2026, found 79% of surveyed SME firms have committed specific funds to AI-based solutions and 51% named profitability and margin improvement as a key strategic priority. Among 39 firms with turnovers from £1.7m to £69m, revenue growth remained about 11–12% for City and regional firms, while partner returns outside London stayed under pressure.
Key points
- Seventy-nine percent of surveyed SME law firms have committed specific funds to AI-based solutions.Legal Futures
- Fifty-one percent identified profitability and margin improvement as a key strategic priority.Legal Futures
- Among 39 firms (£1.7m–£69m turnover), revenue growth stayed about 11–12% for City and regional firms.Legal Futures
- Profit pools grew 12% in the City and 6% regionally, but profit per partner lagged outside London.Legal Futures
- City lock-up rose to 153 days; regional lock-up improved to 132 days; most plan ≤5% pay rises.Legal Futures