Ainsworth: Demand is growing
Law firms are confident in the future and ready to invest, taking out more and bigger loans, according to research from Barclays.
A survey of 125 senior leaders found that 93% were likely to increase investment over the next year – 48% were ‘very likely’, the highest of several business and professional services surveyed – and almost all were confident about their businesses over the next three years.
Barclays data showed how longer-term investment was already taking place. Loan balances among legal practices rose 12.7% in the third quarter of 2026, compared to the same period last year, and the number of loans increased 4.5% year.
The bank said legal services appeared to be further ahead in reshaping their businesses around AI.
Nearly a third (32%) said they have redesigned their business model and workflows to make full use of AI, double the proportion of business and professional services more generally. A further 26% said AI was widely embedded across several business functions.
This investment was already delivering practical benefits, with 30% of law firms citing a greater ability to scale operations and 28% faster service delivery.
However, there were still barriers to wider AI usage, specifically around data security (33%), workforce resistance (27%), implementation costs (26%) and concerns about accuracy (26%).
AI and automation continued to be a leading investment priority for law firms (20%), alongside data and legacy systems (21%), and product or service development (20%).
In common with other surveys, Barclays found that skilled labour shortages were affecting 63% of firms’ ability to grow; upskilling existing staff was cited by 31% as a workforce challenge.
Steve Ainsworth, head of business and professional services at Barclays, commented: “Law firms are feeling particularly confident about the years ahead. Demand is growing as clients deal with everything from new regulation and cyber risks to restructuring and AI, and firms are responding by investing in their businesses.
“Many firms are already rethinking how they work and where technology can make a difference, while continuing to invest in their people and services.There’s plenty of ambition across the sector.”