Clio Reveals Australian Law Firms Face Data Lock-In Crisis

More than 1 in 3 Australian Law Firms Face $25,000 Average Fees and Month-Long Delays When Trying to Access Their Own Data

 

Sydney – Tuesday 28 October, 2025 – Landmark data commissioned by Clio, the global leader in legal AI technology, has uncovered a disturbing pattern of data lock-in affecting Australian law firms.

According to The State of Legal Tech 2025 Data Insights, a significant number of firms are being charged excessive fees, facing long delays, and struggling to access their own documents when attempting to switch providers or negotiate better contracts.

The findings reveal:

• 71% of lawyers surveyed say their firm has experienced legal tech providers withholding or delaying access to their own data when terminating or renegotiating contracts
• Some firms were forced to pay for data extraction, paying an average fee of $24,861 and 80% being charged $10,000 or more to retrieve their own client files and case documents
• Data extraction takes an average of four weeks, with 85% of lawyers surveyed reported delays of two weeks or longer
• Only 39% of lawyers surveyed believe their documents could be easily exported or migrated to a new provider

Despite 84% of lawyers surveyed understanding the concept of data portability, the survey reveals a disturbing lack of confidence in actual data ownership. Only 52% are completely confident they own their client data and case documents stored within their legal tech systems. The remaining 48% express uncertainty, with 44% admitting they would need to investigate their contracts to be sure.

This uncertainty becomes a harsh reality when firms attempt to switch providers or negotiate better contract terms. The survey data reveals that vendor lock-in tactics are systematic across the industry.

The financial impact is substantial. With approximately 23,700 legal services businesses operating in Australia as of early 2025, if just 10% of firms face average data extraction fees of AUD $24,861 annually, the industry could be incurring nearly AUD $59 million each year. When factoring in productivity losses caused by prolonged delays, the total cost to the sector likely reaches well into the hundreds of millions annually.

“When we tried to move to a more modern platform, we were hit with unexpected fees and told it would take weeks to get our own files back,” said Caralee Fontenele, Founder and Director at Scalable Law. “It was a wake-up call when we realised we didn’t truly control our own data, and it felt like our documents were being held ransom for a cash exchange.”

“These findings highlight a serious concern for the Australian legal industry,” said Jack Newton, CEO and Founder of Clio. “Many firms are encountering significant costs and operational hurdles when trying to access data that rightfully belongs to them. This raises important questions about fairness, transparency, and the need for stronger data portability standards in legal technology.”

The financial impact extends far beyond extraction fees. When factoring in lost productivity, delayed client service, and the resources required to navigate complex data retrieval processes, the true cost to Australian law firms runs into millions of dollars annually.

“When law firms are forced to pay significant fees and endure weeks of delays just to access their own client files, it undermines their independence and their ability to serve clients effectively,” said Newton. “Lawyers deserve absolute clarity and confidence that their data is theirs to access, and move whenever they need it. True data portability is essential to protecting the trust at the heart of the legal profession.”

“Every hour a solicitor spends chasing down their own case files is an hour taken away from clients. The financial burden is only part of the story,” added Newton. “The greater cost is the lost time, the disruption to client service, and the pressure it places on firms that are striving to do their best work. Technology should remove these barriers, not create them.”

The report also raises serious concerns about competition and innovation in the legal tech sector. When firms face high costs and delays to access their data, it discourages switching, reduces market pressure, and limits product improvement.

Clio has long supported ethical data practices, offering:

• Complete data ownership guarantees for all client information
• Free, unlimited data exports at any time
• No exit fees or penalties for switching providers
• API access allowing real-time data integration and backup
• 30-day data retention after account closure at no additional cost

“We believe law firms should never be held hostage by their technology providers,” said Denise Farmer, General Manager, APAC. “Data portability isn’t just a nice-to-have feature, it’s a fundamental right. Our clients’ success depends on having complete control over their practice data.

Clio is urging the global legal technology sector to adopt clear, ethical data standards, including mandatory data portability, capped and transparent extraction fees, standardised export formats, and explicit data ownership rights.

“The legal profession deserves the same data portability protections that are being implemented globally,” Farmer continued. “We’re seeing progressive legislation in Europe that will eliminate switching fees and mandate 30-day data transfers by 2027. Australian law firms shouldn’t have to wait for regulatory intervention to access these fundamental rights.”

——

Methodology
The 2025 Legal Ethics and Technology Report was conducted by YouGov and surveyed 1,005 practising lawyers across Australia and the online survey was conducted in July 2025. The margin of error is ±3.1% at the 95% confidence level. Full survey methodology and additional findings are available upon request.

About Clio
Clio is the global leader in legal AI technology, empowering legal professionals and law firms of every size to work smarter, faster, and more securely. Purpose-built for the legal industry, Clio’s AI platform streamlines workflows, improves decision-making, and combines powerful technology with industry-leading security. Trusted by hundreds of thousands of legal professionals in more than 130 countries, and approved by over 100 bar associations and law societies worldwide, Clio sets the standard for innovation and client success across the legal profession. Backed by world-class investors and a mission to transform the legal experience for all, Clio is defining the future of legal work through AI.