Beyond Efficiency: Competitive Edge in LegalTech
Introduction
The legal industry is no stranger to hype. Generative AI, automation, and data insights have dominated conversations for the past few years. Yet in 2025, two topics rise above the noise: Agentic Workflows and Transparency in AI. These aren’t just buzzwords. They are reshaping how law firms deliver value, manage risk, and compete for clients. Firms that understand and adopt these shifts thoughtfully are positioning themselves to thrive in a rapidly changing market. This article explores why these areas matter most and how firms can transform them into a long-term advantage.
The Rise of Agentic Workflows
Agentic workflows are more than just automation. Where traditional technology tools were built to execute isolated tasks, agentic workflows allow AI agents to handle entire processes end-to-end. This means legal work can be streamlined from start to finish without multiple handoffs between tools or people. For example, an AI system can now summarize large sets of documents, automatically apply redactions, generate risk flags, and even prepare a draft report for client review—all within one seamless workflow.
This approach matters because it addresses one of the biggest inefficiencies in law: fragmentation. Lawyers often find themselves toggling between tools, duplicating steps, and spending countless hours on routine, repetitive work. Agentic workflows eliminate much of that friction.
By embedding intelligence directly into processes, these workflows:
Deliver measurable impact: Instead of shaving minutes off small tasks, agentic workflows save hours across entire projects, multiplying productivity gains.
Enable scalability: Once an AI agent is trained and tested for a workflow, it can be replicated across practice groups, offices, and even jurisdictions.
Build institutional value: Unlike off-the-shelf vendor solutions, these workflows can be customized and owned by the firm, creating intellectual property and competitive advantage.
Consider due diligence. Traditionally, this process has required teams of associates reviewing thousands of documents under tight deadlines. With agentic workflows, firms can create an AI-driven pipeline that flags relevant clauses, checks compliance issues, and categorizes risks before human review begins. The lawyer’s role shifts from mechanical document review to strategic decision-making, providing clients with faster, more reliable insights.
Transparency in AI: The New Client Demand
While efficiency is important, clients are no longer impressed by speed alone. In 2025, transparency in AI use has become a defining expectation. Clients want to know exactly how AI is applied to their matters and whether it enhances quality without introducing new risks.
Transparency in AI requires more than a simple disclosure that a firm “used AI.” Instead, it must address three dimensions:
Audit trails: Clients expect detailed records showing how AI contributed to legal tasks, including which parts of a workflow were AI-assisted and where human oversight took place.
Value metrics: Clients increasingly request data on measurable benefits—such as hours saved, cost reductions, and improvements in accuracy—so they can evaluate whether AI usage aligns with their business interests.
Risk management logs: Trust is built when firms can demonstrate that they actively test for bias, protect sensitive data, and apply quality checks before outputs reach the client.
This demand for transparency is changing the lawyer-client relationship. Firms that embrace openness about their AI use build trust and loyalty. On the other hand, firms that resist or conceal their methods risk losing credibility and clients to more transparent competitors. Transparency isn’t just about compliance—it has become a strategic differentiator.
Beyond Efficiency: The Real Competitive Edge
Many firms view legal tech as a way to cut costs and speed up processes. While that remains true, the real competitive edge lies in how firms use technology to redefine client service and organizational culture.
Client loyalty is one of the most obvious advantages. Transparent AI practices reassure clients that innovation won’t compromise quality. Clients increasingly prefer working with firms that can prove how technology benefits them, rather than simply promising lower bills.
Stronger branding also follows naturally. Firms that build agentic workflows and showcase transparency in AI distinguish themselves as innovators. They become known as leaders who can deliver more value with fewer risks, which matters in a market where differentiation is increasingly difficult.
Finally, talent attraction is a powerful benefit. The next generation of lawyers is drawn to firms that treat technology as part of their strategy, not as an afterthought. Junior lawyers want to work where their time isn’t wasted on repetitive tasks and where they can learn how to integrate AI tools into high-value legal work.
Taken together, these advantages mean that firms investing in agentic workflows and transparency aren’t just improving efficiency—they are building a sustainable position in a competitive market.
Practical Steps for Firms in 2025
Moving from hype to habit requires a clear strategy. Too often, firms adopt new technology without considering the bigger picture, leading to failed pilots and wasted resources. To avoid this, firms should focus on structured adoption.
The first step is to audit existing workflows. Firms should identify which tasks are routine, repeatable, and suitable for AI-driven redesign. By targeting the right processes, they can achieve meaningful improvements without overwhelming their teams.
The next step is to pilot agentic workflows in one practice area. Instead of trying to overhaul the entire firm, start with a focused project, such as contract review or compliance monitoring. Early wins build momentum and provide data to guide larger rollouts.
Equally important is building transparency frameworks. Firms should implement systems that generate client-facing reports, record audit trails, and track quality metrics. These systems not only reassure clients but also help firms monitor their own performance and refine their use of AI.
Training is another critical component. AI literacy for lawyers must go beyond button-clicking. Lawyers need to understand the strengths and limitations of AI, supervise outputs, and confidently explain results to clients. This ensures that technology enhances, rather than undermines, professional judgment.
Finally, firms should engage clients early in their technology journey. By involving clients in pilots, co-designing AI policies, and sharing results openly, firms strengthen partnerships and build goodwill. This collaborative approach turns clients into allies rather than skeptics when it comes to AI adoption.
The Bigger Picture: Agentic Workflows and Transparency Together
Agentic workflows and transparency in AI are powerful on their own, but their combined effect is even greater. Workflows without transparency risk skepticism. Transparency without robust workflows risks appearing superficial. Together, they create a cycle of trust and efficiency: efficient processes demonstrate value, while transparent reporting validates results.
Consider a firm that implements an AI-driven due diligence process. Without transparency, a client may worry about missed details or unchecked risks. But if the firm provides a clear audit trail showing which tasks the AI performed, how lawyers reviewed the results, and how much time and money the client saved, trust is strengthened. The client sees not only efficiency but accountability—and that combination is what secures long-term loyalty.
Conclusion The future of legal tech isn’t about chasing every new tool or headline. It’s about building agentic workflows that transform how legal work gets done and ensuring transparency in AI that builds client trust. Efficiency may be the baseline, but true competitive advantage lies in aligning technology with strategy, accountability, and client expectations. Firms that embrace this approach in 2025 won’t just keep up—they will lead.
How is your firm approaching agentic workflows and transparency in AI?