Evolution, Technology Impact, and Strategic Implications
This report analyses the changing landscape of consumer buying behaviours in the UK legal services market, with particular attention to family law customers. By examining historical trends, technology adoption patterns, and demographic variations, we offer actionable insights for legal firms planning their strategic evolution in a rapidly changing marketplace.
Executive Summary
The UK legal services market is experiencing a fundamental shift in consumer buying behaviours, driven by increased price sensitivity, growing willingness to shop around, and rapid technological disruption. Consumer shopping around has increased from 30% to 43% in recent years [1], with 41% of consumers comparing providers in 2024 [2]. Meanwhile, an unprecedented 96% of UK law firms now integrate AI into their operations [3] [4], signalling a transformative period for service delivery. Family law, now a £2 billion market, shows distinct consumer engagement patterns, with 55% of family law clients comparing multiple providers [1] [5]. Regional and demographic differences reveal significant variations in service preferences, particularly between age groups. Legal firms must strategically position themselves for this evolving landscape by adopting client-centric technologies, re-examining pricing models, and addressing the specific needs of diverse client segments.
Historical Consumer Buying Behaviour in Legal Services
Traditional Decision-Making Factors
Historically, UK legal services consumers have prioritised reputation (82%) and price (81%) when selecting providers [1]. Other significant factors include specialist expertise, geographical proximity, and service speed. The traditional approach to legal services was characterised by limited comparison shopping and high reliance on established local providers, with many consumers viewing legal services as a “reluctant purchase” to be avoided where possible [6].
Evolution of Shopping Around Behaviour
Consumer comparison behaviours have evolved dramatically. The proportion of legal service consumers shopping around has risen from 30% to 43% in recent years [1], with the Legal Services Consumer Panel’s tracker survey confirming this trend with 41% of consumers comparing providers in 2024 (versus 39% in 2023) [2]. This represents a significant shift from the 2012-2021 period when shopping around rates hovered between 22-30% [2].
Service-Specific Comparison Behaviours
Comparison shopping varies significantly by service type:
- Debt or hire purchase problems (55%)
- Benefits or tax credits advice (52%)
- Family matters (51%)
- Conveyancing (48%) [1] [2]
When comparing providers, consumers typically evaluate three options (42% of shoppers), with 67% making their decision within one week [2]. This represents a slight deceleration in decision-making, as 70% made decisions within a week in 2023 [2].
Consumer Segmentation
The Legal Services Board identifies five distinct consumer segments, with notable differences in shopping behaviour:
“Educated, selective but unconfident” consumers (10.8 million people) are the most likely to shop around despite having lower legal confidence [7]
“Confident and satisfied ‘frequent fliers'” (12.2 million) display the highest legal capabilities and satisfaction [7]
“Under-served” consumers (7 million) represent a vulnerable segment with lower legal capabilities and unmet needs [7]
The Changing Landscape: Technology and AI in Legal Services
Current State of Technology Adoption
The legal services sector has embraced technology at an unprecedented rate. According to Clio’s research, an extraordinary 96% of UK law firms now integrate AI into their operations, with 62% of solicitors planning to expand AI use over the next year[3] [4]. This represents a fundamental shift from historical resistance to technology adoption.
Major applications of AI within legal services include:
- Document drafting and automation (36%)
- Contract review and analysis (29%)
- Non-legal AI tools (24%)
- E-discovery solutions (20%)
- Legal research (17%) [3] [4]
Impact on Service Delivery and Practitioner Experience
Technology adoption is yielding measurable benefits for both service delivery and practitioner wellbeing:
- 43% of UK solicitors report improved productivity and work quality
- 41% observe benefits to business growth
- Over 20% report better mental health and work-life balance [3] [4]
The pandemic accelerated digital transformation, with videoconferencing enabling firms to traverse geographical barriers and cloud-based software facilitating remote working models [8]. This period of forced adaptation has had lasting effects on service delivery preferences.
Technology Investment Priorities
Law firms are making substantial technology investments to maintain competitive advantage:
- 34% of firms plan to invest over £100,000 in technology in the coming year
- 36% expect comparable investments in marketing and client acquisition [3] [4] [9]
These investments reflect the strategic importance firms are placing on digital transformation to meet evolving client expectations.
Client Experience Evolution
Client expectations have evolved substantially, with consumers now demanding real-time updates and complete transparency. The legal sector has historically lagged in this area but is rapidly adapting through:
- Client service automation with AI and chatbots
- Client hubs providing instantaneous updates
- Cloud-based project management systems delivering timely notifications [8]
The proportion of consumers reporting easier access to information on expertise, quality, timelines, and professional indemnity insurance has increased significantly compared to 2018 [2].
Family Law Market: Specific Trends and Opportunities
Market Value and Growth
The family law market represents a significant and growing segment of legal services:
- Market value reached £2 billion for the first time in 2023, growing by 4.5%
- Expected to maintain 4.5% annual growth over the next three years
- While divorce filings decreased in 2023, financial remedy case starts increased by over 13% [5]
Evolving Service Models
Family law practices are innovating with new service delivery models:
- Virtually all leading family law brands now offer a “one lawyer, one couple” option
- Alternative dispute resolution (ADR) is gaining traction, partly due to court backlogs
- Demand is increasing for pre-nuptial agreements, co-parenting arrangements, and integrated wellbeing services [5]
The “one lawyer, one couple” approach potentially impacts revenue by resolving matters more quickly with fewer resources but creates opportunities to offer additional services to both parties, including will writing, conveyancing, and wealth management advice [5].
Technology Applications in Family Law
Technology is transforming family law practice in specific ways:
- Digital forensics specialists analyse device contents from text messages to internet searches
- More sophisticated AI programs can scan and review documents, images, and messages
- AI tools like ChatGPT may reduce costs compared to one-off expert services
- New challenges include verifying the authenticity of client-provided digital evidence [10]
Market Consolidation
The family law market is experiencing significant consolidation:
- Total number of family law firms in England and Wales has declined from over 5,700 in 2018 to fewer than 4,800 in 2024
- Larger consumer law firms and specialist family law brands are gaining market share through M&A and office network expansion
- High-end international firms focusing on high-net-worth individuals and cross-border matters continue to show healthy growth [5]
Regional and Demographic Differences
Regional Variations
Significant regional differences exist in consumer behaviour and service preferences:
- London consumers are less likely to use solicitors (48%) compared to the national average
- South-West consumers show higher solicitor usage (69%) [11]
- Yorkshire and Humber residents make quicker decisions, with 72% deciding within a week [2]
- Solicitors are increasingly concentrated in central London firms, with nearly half of newly admitted solicitors since 2006 working exclusively for central London practices [12]
Age-Based Preferences
Consumer behaviour varies dramatically by age:
- Only 39% of 18–24-year-olds use solicitors, compared to 73% of those aged 55+ [11]
- Younger consumers (18-34) are significantly more likely to shop around (51-56%) [2]
- Older consumers (55+) prefer face-to-face service delivery (51%) [11]
- Younger consumers (18-24) are more likely to use diverse service providers including barristers, insurance companies, and advice services [11]
Gender Differences
Gender influences both service delivery preferences and practitioner location:
- Female consumers are less likely to receive face-to-face services (43%) than males (48%)
- Women are more likely to use email/online (37%) and telephone (16%) services
- Female consumers using online services are more likely to want additional direct interaction [1] [11]
Payment Methods
Payment approaches vary across demographic segments:
- 71% of consumers paid for legal services themselves or with help from family/friends
- Insurance coverage, legal aid, and no-win-no-fee arrangements show varying popularity across demographics [13]
Strategic Implications for Legal Firms
Technology Integration Strategy
For legal firms planning their evolution, technology adoption should be strategic and client-focused:
- Prioritise AI applications with proven ROI: Focus on document automation, contract review, and client communication tools that show measurable productivity gains
- Develop hybrid service models: Balance technological efficiency with personal touch, particularly for client segments that value direct interaction
- Invest in secure cloud infrastructure: Enable flexible working models while maintaining data security and compliance
- Implement client-facing technology: Develop client portals and real-time update systems to meet expectations for transparency
Service Delivery Evolution
Legal firms should adapt service delivery models to match changing consumer preferences:
- Offer multi-channel engagement: Provide face-to-face, telephone, and digital options to accommodate diverse preferences
- Develop specialised service packages: Create targeted offerings for specific demographic segments
- Consider “one lawyer, one couple” models: Evaluate opportunities for family law practice evolution
- Enhance transparency: Make pricing, timelines, and process information readily available online
Pricing Model Transformation
The billable hour model is under increasing pressure as consumer expectations evolve.
- Expand fixed-fee offerings: 54% of firms expect increased adoption of fixed-fee structures [9]
- Use AI to make fixed fees viable: Leverage efficiency gains from AI to maintain profitability while offering predictable pricing
- Develop tiered service packages: Create options at different price points to serve diverse client segments
- Emphasise value over time spent: Communicate service value proposition rather than hourly rates
Marketing and Client Acquisition
With increased shopping around behaviour, client acquisition strategies must evolve:
- Enhance online presence: Ensure service information, staff profiles, and timelines are easily accessible (63% of consumers now see this information, up from 44%) [1]
- Target specific demographic segments: Develop tailored marketing approaches for younger consumers who are more likely to shop around
- Emphasise reputation management: Given reputation remains the most important factor (82%), prioritise reviews and testimonials
- Leverage data analytics: Use client data to identify trends and opportunities in specific market segments
Conclusion
The UK legal services market is at an inflection point, with fundamental shifts in consumer buying behaviours coinciding with unprecedented technological transformation. Legal firms that understand and adapt to these changing dynamics will be positioned for success, while those clinging to traditional models’ risk being left behind.
Key action points for legal firms include:
- Embrace technology strategically: Invest in AI and digital tools that enhance client experience while improving operational efficiency
- Adapt service delivery models: Develop hybrid approaches that balance technological efficiency with personal interaction
- Reconsider pricing structures: Move toward transparent, value-based pricing models that meet consumer expectations
- Target marketing efforts: Understand demographic and regional differences to tailor client acquisition strategies
- Consider consolidation opportunities: Evaluate market position considering ongoing consolidation, particularly in family law
By responding proactively to these trends, legal firms can align themselves with evolving consumer preferences, leverage technological advantages, and position themselves for sustainable growth in a rapidly changing marketplace.
Source Links
3. https://www.clio.com/uk/blog/ai-technology-trends/
4. https://itbrief.co.uk/story/ai-to-transform-uk-law-firms-with-96-adoption-rate
5. https://www.legalfutures.co.uk/latest-news/value-of-family-law-market-hits-2bn
8. https://www.lawmergers.co.uk/how-technology-is-shaping-the-legal-sector-in-the-uk/
12. https://www.sra.org.uk/globalassets/documents/sra/research/diversity-legal-profession.pdf
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