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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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Thompson Hine LLP, a national law firm recognized for its innovation focus, today announced the publication of its fourth innovation survey report, “Bridging the Perception Gap – Disconnects, Expectations and Opportunities,” a continuation of the firm’s multiyear effort to measure law firm innovation from the client’s perspective. This year’s report reflects input from nearly 200 senior in-house counsel and legal decision-makers.

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Survey findings reveal a narrowing but ongoing divide between the innovations firms say they deliver and what clients perceive, suggesting that firms’ ability to communicate to clients about their innovations, as well as impacts and ROI, may be almost as important as the innovations themselves.

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While 93% of in-house counsel say innovation is critical or plays an important role in their selection of outside counsel, only 5% say their primary law firm delivered “a great deal” of innovation in the past year.

30%of respondents report not seeing any impact from innovation in their law firms, signaling a persistent deviation between investments and outcomes.

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79% of clients said they saw at least “some” innovation within their law firms, and respondents who saw “none” dropped significantly to 16% this year from 30% in 2023.

Only 29% reported being aware of their firms’ implementation of legal project management/process improvements.

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Asked about their own innovation focus, respondents admit that there is room for improvement there as well.

Only 27% of in-house law departments currently see themselves as superior to their outside firms in terms of innovation, down from 48% in the last survey.

Only 30% of respondents characterize themselves as “strong” innovators, with barriers including a lack of prioritization, despite being open to innovation (57%); integration with existing systems (49%); security concerns (48%); onboarding/training (45%); budget (31%); and a hesitancy to change workflows (14%).

While clients desire greater innovation, both from law firms and internally, only 12% say they collaborate with their outside counsel on efforts to develop and implement more innovative tools and processes, a number that has remained unchanged since 2023.

Budgeting efficiency and transparency remain the most durable unsolved needs, with clients calling for practical, outcome-driven solutions grounded in process discipline. Where clients do see value, it is concrete and operational. The top-reported impacts include reduced time on routine tasks, such as contract review and document creation, and improved efficiency from better workflows. Clients continue to prioritize reliable budgets and forecasting, alternative billing and disciplined legal project management – areas where adoption and communication lag.

67% asked for reliable, detailed budgets and access to budget reports, yet only 28% reported currently receiving meaningful forecasts.

56% want legal project management/standardized workflows.

This year’s study also explored attitudes toward generative AI. Clients are open to the responsible use of technology, including generative AI. They want clear, measurable evidence of how tools are used and how they improve outcomes, not just assurances that they exist. A majority of clients report being somewhat comfortable with its use, both internally and by outside counsel, with greater comfort expressed for use within the legal department than for use by firms on their behalf. The data suggests that trust and explainability will be critical to broader adoption.

59% are comfortable with their external law firms using generative AI.

49% want broad adoption of emerging technology like generative AI to streamline services and communications, and 46% would be interested in law firm training of law department teams.

The most valuable generative AI-related applications are those that reduce day-to-day friction: dynamic/smart document templates (63%), automation of routine/administrative tasks (61%), and new technologies that improve processes or efficiency (54%).

The mandate for law firms is clear. “Clients are telling the market exactly where to focus,” said Thompson Hine Managing Partner Tony White. “Automate the repetitive, standardize the process, provide reliable budgets and show your work. Innovate, yes, but in a way that remains fundamentally practical, measurable and clearly connected to results and business value.”

White added, “When firms pair the right tools with clear and proactive communication and the co-development of solutions specifically aligned to clients’ needs, trust grows and innovation transforms from some abstract concept to a meaningful reality. Thompson Hine’s SmartPaTH platform was born from and built on these principles – combining project management, alternative staffing, data-driven decision-making and responsible generative AI to deliver real and predictable value.” Thompson Hine launched its innovation survey series in 2017 to measure law firm innovation from the client’s perspective. This year’s study, produced in partnership with Corporate Counsel, captures responses from nearly 200 in‑house counsel and other legal service decision‑makers across a diverse mix of industries, company sizes and roles.

Thompson Hine Issues Fourth Innovation Report