Communicating Legal Tech ROI to Business Stakeholders

According to an article by LawVu’s Marija Barbarich and Ashley Bass, demonstrating legal tech ROI (Return on Investment) has become essential for in-house legal teams. However, ROI in legal operations extends beyond traditional financial calculations. It validates past expenditures, supports the business case in securing future funding, and strengthens the legal department’s strategic role within the business.

True ROI also captures time saved, risks mitigated, and the degree to which technology empowers faster, smarter business decisions.  To measure ROI effectively, legal teams should first establish a clear baseline that identifies pain points such as high request volumes, deal delays, or elevated outside counsel costs. From there, they can track measurable outcomes such as hours saved or shorter contract turnaround times to demonstrate progress. 

Next, they should highlight the improvements technology can enable, such as reductions in outside counsel spend and matter management turnaround time. Crucially, ROI must also account for qualitative outcomes, including improved stakeholder satisfaction, team morale, greater trust in legal as a business enabler, and data-based insights.  

Communicating ROI to executives requires tailoring the message to different audiences. CFOs seek financial justification, COOs focus on efficiency gains, and CEOs want to see how legal drives growth and confidence. 

The strongest ROI stories blend quantitative and qualitative data, such as hours saved or costs reduced, with compelling narratives about business alignment, team morale, and reputation. Before-and-after comparisons, visual dashboards, and concise storytelling all help bring results to life. Maintaining this narrative through regular updates ensures that legal remains visible as a proactive, data-driven partner. 

Nevertheless, measuring and communicating legal tech ROI is about connecting the dots between operational improvements and business impact. By linking quantitative metrics with qualitative value, legal operations leaders can secure investment, elevate their influence, and demonstrate that modern legal functions drive measurable competitive advantage.