Beyond Brick and Mortar: The Evolution and Impact of Virtual Law Firms
4.2.2025
The COVID-19 pandemic catalyzed an unprecedented experiment in remote legal practice, forcing firms to rapidly adapt to virtual operations. This mass migration to remote work revealed surprising capabilities in some areas while exposing significant limitations in others. As the legal profession emerges from this period of forced adaptation, many firms are thoughtfully evaluating the role of virtual practice in their long-term strategies. Some have returned fully to traditional offices, others have embraced hybrid models and a notable minority have chosen to become fully virtual operations. Understanding when and how virtual practice can succeed – and when it may fall short – has become essential for firms planning their futures.
The Evolution of Virtual Legal Practice
While the pandemic accelerated the adoption of virtual practice, the concept predates 2020. Early adopters in the 2000s and 2010s demonstrated that certain types of legal work could be conducted effectively in virtual settings. Particularly successful were firms focusing on transactional work, intellectual property matters and other practice areas that relied less on in-person interaction.
“As with anything else, working remotely full-time comes with a learning curve,” said Matthew J. Weiss, an attorney specializing in vehicle and traffic law. He emphasized the importance of clear policies and technology adoption for successful shifts to remote practice.[1]
Some pioneering firms developed many of the operational protocols that would later prove valuable during the pandemic-driven shift to remote work.
Practice Areas and Scenarios Well-Suited to Virtual Operations
Experience has shown that certain practice areas and business models align particularly well with virtual operations. Technology-focused practices, including software licensing and digital intellectual property work, often thrive in virtual settings where clients are already comfortable with digital interaction. Similarly, firms specializing in routine transactional work, such as residential real estate closings or trademark filings, have found that virtual operations can increase efficiency while reducing costs.
Firms like Fennemore Craig have embraced fully remote options, particularly for transactional work, enabling them to attract and retain talent by offering unparalleled flexibility. The firm recently launched a program allowing attorneys to work remotely from locations without physical offices, countering the post-pandemic trend of returning to traditional office environments. “We think other firms are making a huge mistake by requiring everyone, regardless of their circumstances, to come to the office,” said Fennemore Craig CEO and president, James Goodnow, highlighting the flexibility of a hybrid model and fully remote operations where appropriate.[2]
Virtual firms have also proven effective for experienced attorneys with established client bases who wish to operate with more flexibility and lower overhead. These practitioners often find that their longstanding clients readily adapt to virtual interaction, particularly when it results in cost savings. Additionally, virtual operations can work well for specialized practices serving clients across wide geographic areas where in-person meetings would be impractical regardless of the firm’s structure. “Because my office represents public school employees, we have clients all over New York State, yet we rarely meet with clients or opposing counsel in person, resulting in significant time and cost savings and freeing us up to make more valuable contributions to our clients’ cases elsewhere,” said Tyler Rexhouse, of counsel to the School Administrators Association of New York State. “We can negotiate or litigate most of our cases from our couches – now with the aid of artificial intelligence. It’s truly a new frontier in the practice of law,” he added.
Technology as Foundation and Challenge
The success of virtual law firms depends heavily on their technological infrastructure. Modern practice management systems, secure document handling platforms and robust communication tools have made virtual practice viable in ways that would have been impossible even a decade ago. According to the American Bar Association, the most common remote working tools adopted during the pandemic included videoconferencing (32%), e-signature platforms (22%) and law practice management software (14%).[3]
However, the technology requirement presents its own challenges. A report by Wolters Kluwer found that 56% of firms reported an increased demand for legal tech solutions during the pandemic and 65% planned to maintain or increase their investment moving forward, with top priorities including e-signatures, e-meeting and e-voting management, and document and contract workflow management.[4]
The initial investment in secure systems can be substantial, and ongoing maintenance, updates and IT support create recurring costs that partially offset savings on physical infrastructure. Virtual firms must also contend with varying levels of technological sophistication among clients, requiring flexibility in communication methods and document-handling procedures.
The Human Element: Opportunities and Challenges
The impact of virtual practice on human capital represents both its greatest potential and its most significant challenges. On the positive side, virtual operations can offer attorneys and staff unprecedented flexibility in their work arrangements. This flexibility has proven particularly valuable for recruiting and retaining talented professionals who might otherwise leave traditional practice due to geographic constraints or work/life balance concerns. Virtual firms can also access talent pools in different geographic markets without the need for physical expansion.
However, the development of junior attorneys presents particular challenges in virtual settings. The traditional apprenticeship model of legal practice relies heavily on informal learning opportunities that occur naturally in physical offices. While virtual firms have developed structured mentoring programs and digital shadowing opportunities, replicating the organic professional development that occurs through daily in-person interaction remains challenging. “As we embrace the virtual practice of law, we must ensure technology enhances – rather than replaces – the human element of legal representation,” said Ruby L. Powers, of the Powers Law Group and the author of “Power Up Your Practice.”
“It’s no secret that law school typically does not prepare one for actual practice. As a new attorney, I found an in-office presence to be invaluable in rapidly increasing my knowledge and acumen as a practicing lawyer. Not to mention being physically present led to a sense of firm culture and bonding with coworkers. This led to not only collaboration in a vocational sense, but also to friendships and side projects that benefited both me and the firm at large,” said Robert Hawkins, an associate attorney at The Law Office of Alexander Paykin. “With that said, the flexibility of remote work did allow me to deal with various unavoidable life challenges, such as moving and medical appointments, and even being able to stay on top of matters while halfway around the world,” he added.
Client Service in the Virtual Environment
Client response to virtual legal services has varied significantly by practice area and client sophistication. Many corporate clients, particularly in the technology sectors, have embraced virtual legal services, appreciating the efficiency and cost savings they can provide. According to an American Bar Association survey, a significant portion of lawyers expressed a desire for remote court proceedings and ongoing flexible work arrangements, reflecting broader client satisfaction with virtual interactions.[5]
Other practice areas and client types continue to benefit from physical presence. High-stakes negotiations, complex litigation strategy sessions and sensitive personal matters often benefit from in-person interaction. Successful virtual firms recognize these limitations and develop hybrid solutions or strategic partnerships to serve clients when physical presence proves necessary.
Financial Implications and Business Models
The financial model of virtual law firms differs substantially from traditional practices, offering both advantages and challenges. Reduced overhead from eliminated or reduced office space can lead to improved profitability or more competitive pricing. However, these savings must be weighed against increased technology costs and the need for different types of support services.
Building and Maintaining Firm Culture
Creating and sustaining a strong firm culture in a virtual environment requires intentional effort and creative approaches. Successful virtual firms have developed comprehensive strategies for maintaining connection and professional community through a combination of regular virtual interactions and periodic in-person gatherings.
Ethical and Regulatory Landscape
The regulatory framework for virtual practice continues to evolve as bar associations and courts adapt to changing technological capabilities. While many jurisdictions have become more accommodating of virtual practice, others maintain requirements that can challenge fully virtual operations. Multi-jurisdictional practice issues require particular attention in virtual settings, as does the maintenance of client confidentiality and security.
“Virtual law firms are attractive targets for cyberattacks due to their heavy reliance on digital storage, frequent discussions of sensitive matters through digital channels, use of various software solutions that require regular updates, and heightened vulnerability to network breaches. Consequently, robust security practices are essential,” says Matthew Lowe, a tech attorney and member of NYSBA’s Committee on Technology and the Legal Profession. He recommends that virtual law firms should adopt methods such as:
- Encryption for data in transit and at rest.
- Secure portals for clients to upload sensitive documents.
- Multi-factor authentication for end-users – both clients and firm employees – when accessing critical digital assets.
- Effective software management policies to ensure all tools are consistently patched and updated.
Virtual law firms should invest in strong security systems to protect sensitive client data, including employee security training and remote workstation policies as well as the use of virtual private networks.
“Managing these aspects can be daunting, but it is imperative. Fortunately, there are numerous managed security service providers available in the market to help get started,” Lowe advises.
Future Outlook
The future of legal practice likely lies neither in full virtualization nor in a return to purely traditional models. Instead, firms are increasingly adopting nuanced approaches that match their operational models to their specific circumstances, practice areas and client needs.
Some practice areas will continue to benefit from significant physical presence, while others may function primarily virtually. A hybrid approach that integrates virtual capabilities while retaining traditional elements seems to be the preferred model for many firms. For example, Fennemore Craig’s remote work program is indicative of how firms are balancing flexibility with operational demands. This model allows firms to retain talent across geographic areas while minimizing physical expansion costs.[6]
Conclusion
The viability of virtual law practice varies significantly based on practice area, client base and firm culture. While virtual operations offer compelling advantages in certain contexts, they also present significant challenges that must be thoughtfully addressed. Success in virtual practice requires careful consideration of these factors, along with substantial investment in technology, professional development and culture building.
Rather than viewing the choice between virtual and traditional practice as binary, firms should evaluate how different elements of virtual operation might enhance their specific practice. The most successful approaches will likely be those that thoughtfully integrate virtual capabilities while maintaining the elements of traditional practice that remain valuable in their context.
The future of legal practice will undoubtedly include virtual elements, but the extent of virtualization should be guided by careful analysis of each firm’s unique circumstances. Understanding both the opportunities and limitations of virtual practice enables firms to make informed decisions about their operational models, ultimately leading to better service for clients and improved outcomes for legal professionals.
Alexander Paykin is managing director of The Law Office of Alexander Paykin, focusing on real estate, commercial matters and related litigation. He serves on multiple ABA and NYSBA technology committees and regularly teaches CLE courses on legal technology topics.
Endnotes:
[1] Matthew Weiss, 5 Tips for Making the Transition to Virtual Law Firm Status, Attorney at Work, Apr. 30, 2022, https://www.attorneyatwork.com/virtual-law-firm-5-tips-for-making-the-transition.
[2] Sara Merken, Another US Law Firm Touts Fully Remote Option, Bucking Post-Pandemic Trend, Reuters, July 9, 2024, https://www.reuters.com/legal/legalindustry/another-us-law-firm-touts-fully-remote-option-bucking-post-pandemic-trend-2024-07-09.
[3] Nicole Black, Technology Choices Ensure Law Firm Resiliency, American Bar Association, Jan. 26, 2022, https://www.americanbar.org/groups/journal/articles/2022/technology-choices-ensure-law-firm-resiliency/.
[4] The COVID Crisis Catalyses Legal Tech Adoption Among Law Firms, Wolters Kluwer, Nov. 16, 2020, https://www.wolterskluwer.com/en-gb/expert-insights/the-covid-crisis-catalyses-legal-tech-adoption-among-law-firms.
[5] ABA Survey: Most Lawyers Want Options for Remote Work, Court and Conferences, American Bar Association, Sept. 28, 2022, https://www.americanbar.org/news/abanews/aba-news-archives/2022/09/aba-survey-lawyers-remote-work/.
[6] Sara Merken, Another US Law Firm Touts Fully Remote Option, Bucking Post-Pandemic Trend, Reuters, July 9, 2024, https://www.reuters.com/legal/legalindustry/another-us-law-firm-touts-fully-remote-option-bucking-post-pandemic-trend-2024-07-09.
