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SME law firms ‘in a stronger position than ever’, given rise of AI and legal tech

The advent of artificial intelligence and legal tech platforms in recent years has allowed boutique law firms to scale strategically, improve operations, and provide top-tier service in ways that make sense to those business owners. Here, four firm leaders reflect on how the current climate is putting small practices on the map like never before.

user icon Jerome Doraisamy 24 April 2025 SME Law
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When it comes to high-quality service delivery, the differences between what’s offered by the big end of town versus a regional or suburban firm have never been so lacking.

The emergence of artificial intelligence (AI) platforms and a bounty of legal technological offerings for different operations and processes for legal practice are resulting in a level playing field between boutiques and BigLaw. Such parity is becoming possible, for example, thanks to the likelihood that AI will save lawyers up to 200 hours a year.

To this end, we reached out to boutique firm owners to see how they’re feeling about the potential for the new landscape to help boost firm operations, compete with the big end of town, and flourish in ways that make sense to them.

Boutiques stronger than ever

For Caralee Fontenele, the director of both Scalable Law and Collective Family Law, the rise of AI and legal tech means that “boutique law firms are in a stronger position than ever”.

“Time-consuming tasks like research, drafting, and file management can be streamlined with AI, allowing smaller practices to operate efficiently and compete in key areas with Big Law,” she said.

Moreover, Fontenele noted, for solo and boutique firm owners, the operational side of practice “has never been easier”.

“The bigger challenge lies in marketing. Getting consistent, quality work through the door and building visibility and trust are where many law firm owners still struggle. This is something that new law firm owners must learn, and it can take time,” she said.

“While legal tech and AI enhance delivery, growth relies on consistent, strategic marketing. But for those who embrace innovation and are ready to invest in their brand, the barriers to entry are lower than ever. As law firm owners no longer chasing size, we’re building sustainable, impactful firms that provide law firm owners freedom of choice.”

The advantage of agility

According to Guest Work Agency founder and director Alana Kushnir, the “beauty” of running a niche legal practice is that one has the capacity to be agile.

“You can adopt and tailor new tools quickly and implement them in ways that are deeply aligned with your priorities. As an experienced lawyer, I know that what my clients truly value is my advice and judgment. That’s where AI has become an invaluable tool: it helps me with the groundwork, so I can focus on delivering what really matters – nuanced advice, strategic thinking, and commercial-minded risk assessment,” she said.

That said, Kushnir noted she wouldn’t go so far as to say that the sky is the limit – “at least not yet”.

“We’re still in an early stage of legal AI adoption, and it’s important not to get swept up in the hype,“ she said.

“Fortunately, because my practice sits at the intersection of art and technology, I was already familiar with the opportunities and the pitfalls of AI long before legal-specific tools hit the market. That gave me a real advantage in being able to assess and adopt the right tools with confidence.”

“By all means, get curious about AI – just make sure it’s a smart fit for your practice.”

Scaling with precision

For Christos Tsonis, the founder and director of CXT Legal, the approach has been to scale deliberately and “for precision”, and not for the sake of growth.

“Our transaction team has doubled in capability over the past 18 months, and we’re advising on more complex, high-value private market deals than ever before. What’s powering that growth isn’t just people – it’s intelligent adoption of AI and automation that supports faster document turnaround, risk profiling, and sharper strategic advice,” he said.

“We’re using legal tech not as a gimmick, but as infrastructure that is aligned with our strategic plan.”

“It allows us to focus on what clients really value: clarity, technical appreciation, legal experience, speed and commercial acumen. The result? We’re punching well above our weight – and doing it on our own terms.”

For boutiques willing to invest in the right tech and talent who are open to embracing change, Tsonis proclaimed, “the ceiling has lifted”.

“The market is hungry for firms that are smart, have technical smarts, are responsive and deeply commercial. That’s exactly where we’re positioned,” he said.

Competing with BigLaw and branching out

Peripheral Blue founder and managing director Mellissa Larkin reflected that embracing technology has been central to her firm’s ability to provide top-tier service in a flexible and cost-effective way from the outset.

“It’s therefore been a very natural evolution for us to explore the rapid developments in the AI and legal tech space in recent years. Just as the advent of cloud-based services removed many of the barriers which historically deterred people from opening boutique firms, so too has legal tech and AI – offering opportunities for boutique firm owners to be able to automate workflow, streamline operations, and improve efficiencies,” she said.

“The effective use of technology in a boutique firm certainly minimises overheads, particularly headcount, while empowering those firms [that] successfully blend subject matter expertise and technology to scale and compete with BigLaw.”

Larkin has even developed a customised, scalable, and holistic ESG RegTech solution for clients, “designed specifically to solve the actual problems we saw companies face time and time again while, importantly, also increasing operational efficiencies”.

“Innovation and technology go hand in hand – when that innovation is practitioner-led, as we’ve done with ESG Edge, it bridges the gap between technology and subject matter expertise to create a uniquely user-centred solution,” she said.

While there are countless benefits to embracing the use of technology within a firm, Larkin mused, in the legal context, generative AI in particular, “needs to be carefully managed and properly understood”.

“Specifically designed legal tech, including AI functionality, on the other hand, which can provide assurances to firm owners around data handling and confidentiality, can be an invaluable tool and an investment which pays dividends,” she said.

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Jerome Doraisamy

Jerome Doraisamy

Jerome Doraisamy is the managing editor of Lawyers Weekly and HR Leader. He is also the author of The Wellness Doctrines book series, an admitted solicitor in New South Wales, and a board director of the Minds Count Foundation.

You can email Jerome at: This email address is being protected from spambots. You need JavaScript enabled to view it. 

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