- Law firms are investing in technologies for operational efficiency and to become more competitive in a crowded market.
- Increasingly, managed service providers (MSPs) are helping law firms with Microsoft 365 management so that law firms can operate more efficiently and retain clients.
- Here’s how law firm technology can use Microsoft 365 capabilities for collaboration and productivity, and better decision making with business intelligence.
Table of contents:
- Introduction
- Choosing the right MSP for Microsoft 365 management
- Collaboration and productivity tools in Microsoft 365
- How law firms can benefit from Microsoft 365 BI
- How the right MSP can help law firms with Microsoft 365 management
Introduction: Today’s law firms compete in a crowded field
Today’s legal industry faces challenges—but also opportunities. In many cases, smaller law firms have no in-house IT and yet are forced to compete with much larger counterparts. Nearly 50% of respondents to a recent survey cite competition from other legal service providers as a key factor in their business operations.
With fewer resources to apply to client relationships, deep legal research, and other legal tasks, law firms are turning to technology to punch above their weight.
Becoming more productive and client-centric are key components of competing in a crowded law firm market.
According to recent data, productivity technology is one of the main drivers of law firm investment in IT. The same survey noted 66% of law firm respondents prioritize technologies that enhance operational efficiency when selecting new or upgraded IT. Moreover, 16% of respondents indicated that they are investing in IT to support firm growth, expand services and handle increased demand.
Choosing the right MSP for Microsoft 365 management for law firms
Despite technology investments, law firms face challenges with IT management. MSPs can help legal practices with Microsoft 365 management by taking on day-to-day IT tasks such organizing data for regulatory compliance, document management, licensing, and use of AI tools such as Copilot. According to recent data, nearly 90% of small and midsize businesses currently use an MSP to handle some of their IT needs or are considering it.
“The real question isn’t whether a law firm uses Microsoft 365, but how well it’s optimized for their practice,” said Damon Dobbs, a product manager at Integris. “An MSP with industry expertise ensures the collaboration tools, information governance, and business intelligence align with law firms’ unique operational demands and compliance requirements, HIPAA, GDPR, and CCPA.
With Microsoft 365 management and support, law firms can focus on their business: building and maintaining client relationships. Recent data indicates that 61% of survey respondents say that maintaining strong client relationships requires firms to deliver personalized, efficient, and transparent services.
In this article, we explore how law firms can use key components of Microsoft 365 for collaboration, productivity, and business intelligence. With these capabilities, law practices can see boosts in efficiency, client service, and even in the quality of work. Ultimately, this helps law firms gain ground in a crowded field.
Collaboration and productivity tools in M365: Enhancing law firm efficiency, enabling higher-quality work
Law firms today face increasing pressure to deliver efficient, high-quality legal services while controlling costs and ensuring better use of resources.
But many struggle with large volumes of data and documents, outdated IT systems that are poorly integrated, and regulatory requirements to protect client data privacy. Nearly 50% of respondents to a recent survey see opportunities for technologies like AI to make daily legal tasks involving documents and data easier.
Microsoft 365 provides a modern platform for legal practitioners to videoconference, share files, help draft legal briefs, conduct research, and manage cases in an organized way. Combined with artificial intelligence, law firms can make serious strides in productivity. Indeed, law firms have started to recognize this. AI adoption within the legal profession skyrocketed in just one year: AI usage has jumped to 79% of legal professionals, up from 19% in 2023.
As law firms organize their business information with M365 using capabilities like document management, they can apply AI to gain more benefits from the platform. Well-organized and properly managed documents ensure that AI tools like Copilot have access to high-quality, up-to-date, and accurate information, which in turn leads to better responses and content generation. But data shows that law firms suffer from the opposite, with 35% of workers struggling to find the information or data they need to do their jobs effectively.
Law firms can realize the potential of AI through better use of platforms like Microsoft 365.
“AI is changing how legal work gets done,” emphasized Dobbs. “Microsoft Copilot can draft documents, summarize depositions, and research case law faster than any associate. The firms using AI with M365 boost speed and quality, freeing resources for strategic client work. Effective adoption helps smaller firms compete with larger ones. ”
Real-time collaboration. With dispersed and global workforces and clients, tools such as Microsoft Teams enable real-time collaboration through chat, video conferencing and file sharing. Survey data indicates that Microsoft Teams has become a top choice among law firms, with adoption growing from 4% in 2020 to 42% in 2022. Integration between Teams and Microsoft Copilot enables new capabilities, such as recording and summarizing meetings, generating summary documents, and more.
Information governance in M365. Law firms create a constant stream of digital information. Email messages, SharePoint documents, and Teams chats accumulate rapidly. Effectively governing this internal data requires more than simple storage; firms must ensure information is findable, retained correctly, and preserved when legal or regulatory needs arise. Microsoft 365 provides the tools for this control, but realizing their potential demands expert management. Indeed, while 94% of firms surveyed have information governance in place, only 4% are fully compliant with their policies.
An MSP with experience in the legal sector can help configure and manage these critical information governance features within Microsoft Purview to improve data governance, security and compliance.
Document management. With SharePoint and OneDrive, law firms can organize files, contracts and case materials while also securing them and keeping them accessible and compliant with regulations and client confidentiality.
Document management practices on their own save time. A Gavel study showed that firms stand to recoup 90% of the time spent generating legal documents with a great document management tool. But firms also see the benefit of layering AI on top of those savings. According to recent data, about 15% of respondents foresee using AI for document management.
Case management. Modern clients expect digital experience from law firms—much like they have come to expect from their bank: Indeed, according to “Legal Sector Trends” report, 31% of firms are considering technology to meet changing client expectations. Clients want more transparency about a case as well as faster updates, and case management software helps satisfy increasing client needs.
Copilot can help track case progress, generate updates, and even forecast potential outcomes based on historical data. This functionality keeps legal teams and clients informed and aligned. Microsoft 365 also integrates with myriad case management systems so that cases remain organized and client communication is seamless.
Document creation. Once a law firm categorizes information and documents in its “digital estate” (that is, its electronic assets), it can use Microsoft Copilot to query saved documents and create new ones—contracts, briefs, legal research—with human oversight and editing. With AI-powered tools, legal practitioners can save time, improve accuracy and enhance communication—all while focusing on delivering higher-quality legal services. According to one estimate, lawyers have reported up to 82% time savings by using document automation, and another indicated that with AI for document creation, tasks that previously took five drafts and two weeks can now be accomplished in two days.
At the same time, over-reliance on AI can create inaccurate information that undermines the key principles of the legal profession. In 2023, for example, a judge sanctioned two lawyers in 2023 for submitting a brief generated by ChatGPT that included several fabricated court opinions and quotes. AI can “hallucinate” and provide data that is skewed or wholly inaccurate, and the onus is on law firms to fact-check, monitor and manage AI-enabled content creation.
Document review and legal research. AI-driven legal research is also a game-changer for legal practitioners. It identifies patterns in judicial decisions and recommends related arguments based on the evolving landscape of case law. Further, using AI in legal research can elevate the quality of legal research. One associate, for example, recalled that AI sunearthed a case that changed the legal strategy and won the motion. According to “The Legal Industry Report 2025,” 61% of law firm respondents reported that AI adoption has “somewhat” increased efficiency, while 21% noted significant efficiency improvements.
AI tools such as Copilot can speed up contract reviews by summarizing details, identifying relevant information, editing key passages, and facilitating collaboration on reviews.
“For small and midsize law firms, the real value of Microsoft 365 isn’t just in the platform itself,” Cooke noted. “It’s how it is configured, secured, and managed. A managed service provider with legal expertise ensures the technology is not just operational, but truly strategic in enabling better collaboration, smarter use of AI, and stronger compliance. That is how law firms turn technology into a competitive advantage, rather than viewing it as a cost of doing business.”
“AI may cause the ‘80/20 inversion; 80 percent of time was spent collecting information, and 20 percent was strategic analysis and implications. We’re trying to flip those time frames,” noted a law firm in the article “The impact of artificial intelligence on law firms’ business models ”
How law firms can benefit from Microsoft 365 BI
When law firms use their business intelligence (BI) to analyze aspects of operations, they can make better decisions, improve firm efficiency and work outcomes, reduce costs, and enhance client relationships. Firms increasingly are turning to BI to analyze myriad key performance indicators, such as case volume, duration, case outcomes, billable hours, and more.
“Law firms that use data to inform their marketing decisions tend to experience higher growth rates,” said Lexis-Nexis InterAction. “By tracking key performance indicators … firms can make more informed decisions.”
While legal practices are still on a journey with business intelligence adoption, 47% of firms used legal analytics, according to the American Bar Association’s “2024 Legal Technology Survey Report.”
For small law firms, understanding the data insights underlying firm operations—case volume, case duration, client retention rates and satisfaction levels, and case outcomes—provide an edge. Data analytics can be a trump card for law firms as they competing with other firms, even larger ones. This insight allows firms to refine their marketing strategies, target the right clients and improve the overall client experience.
According to recent data, 70% of respondents said successful litigation outcomes are tied to business analytics, and 68% say it will contribute to operational efficiency.
Power BI and predictive analytics. Microsoft’s Power BI tool can create interactive dashboards so firms can visualize case metrics, billing data, and operational performance. These kinds of metrics allow firms to be forward-thinking and strategic.
According to one estimate, a law firm increased its profit margin by 10% by renegotiating vendor contracts and adopting cost-effective IT solutions—after calculating areas of overspending with business analytics.
With capabilities like predictive analytics, practitioners can analyze vast data sets of case law, court decisions and judge histories to forecast legal outcomes. This allows lawyers to make data-driven decisions about when to take a case to trial, for example. Lawyers can, in turn, model litigation strategies based on definitive data and the likelihood of success.
How the right MSP can help law firms with Microsoft 365 management for AI, BI
Managed service providers can work alongside law firms as trusted advisers. Legal practices need guidance as they navigate myriad aspects of their Microsoft 365 management strategy.
Managed service providers can help law firms build their IT landscape cost-effectively and predictably. A managed service provider like Integris offers transparent, no-surprises billing, and the ability to deploy, integrate, and manage various technologies.
The right MSP can also help you gain greater value from M365 by architecting your digital estate for use with AI. According to the “Future of Professionals Report,” using AI alongside other law office technology could free up four hours of a legal professional’s time per week. For U.S. lawyers alone, the savings could translate into 266 million hours of increased productivity—approximately $100,000 in new billable time per lawyer each year.
Additionally, an MSP that understands your business and industry also provides return on investment with thorough guidance on document management and information governance. The right MSP will ensure your compliance with key industry requirements.
Ultimately, an MSP like Integris can be your IT partner in building a legal practice that can compete in a crowded field while remaining efficient, secure, and forward-looking.
“Business intelligence tools like Power BI give small and midsize law firms access to the kind of insights that used to be reserved for ‘big law,’” Cooke said.“From forecasting case outcomes to optimizing billable hours, BI turns data into concise, actionable decisions. The firms that invest in understanding their own performance are the ones best positioned to operate efficiently and ensure long-term growth.”
