Top Legal Records Management Challenges in 2025
Legal records management is the systematic control of a law firm's documents throughout their lifecycle to ensure compliance, protect client confidentiality, and mitigate risk.
In 2025, key challenges include:
Firms can address these by partnering with specialized providers like Annex.com for secure, compliant, and centralized records management.
Key Challenge: Navigating shifting rules on document retention, privacy, and audits while maintaining accuracy across jurisdictions.
With legal compliance rules growing increasingly nuanced across federal, state, and international boundaries, law firms must now manage complex retention schedules, fulfill transparency requirements, and respond rapidly to audits or litigation requests. The sheer volume of client data — spanning emails, contracts, case notes, and evidence — makes consistent oversight a mounting challenge. Compliance missteps can lead to malpractice exposure, penalties, or client loss, especially in high-stakes fields like corporate law, healthcare litigation, or IP.
Annex.com Solution: Annex.com can help streamline compliance through automated retention and disposition schedules, and built-in audit trails built to address regulatory scrutiny, which can lead to reduced risk and a simplified oversight process.
Key Challenge: Disconnected archives, shared drives, and case management systems reduce efficiency and threaten client confidentiality.
Law firms typically store legacy paper files in off-site locations while newer materials are scanned and stored digitally, often in inconsistent or fragmented systems. This creates multiple points of failure when staff need to retrieve or update case-related materials. The risk of misfiled or inaccessible records delays casework, hinders e-discovery efforts, and increases the risk of error during audits. Worse, overlapping systems make it harder to enforce security controls or destruction schedules.
Annex.com Solution: Annex.com can help reduce silos by centralizing the management of physical, scanned, and digital files across multiple document storage and/or secure destruction services providers. With metadata tagging and advanced search, firms may increase the speed with which records are accessed, which can lead to improved response times and reduced risk.
Key Challenge: Growing risks from ransomware, phishing, and unauthorized access pose a threat to confidentiality and client trust.
Law firms are prime targets for cybercriminals because they manage sensitive, high-value data such as case strategies, financial agreements, and M&A documentation. In 2025, legal professionals must navigate evolving state and global data privacy regulations like CCPA, GDPR, and CPRA — all while avoiding reputational damage from leaks or breaches. Insider risks are equally concerning, as unauthorized file access by internal users remains a persistent blind spot without proper controls.
Annex.com Solution: Annex.com can help protect legal records with end-to-end encryption, role-based access controls, and compliance-aligned security across the record lifecycle that can assist firms with an audit-ready defense against external breaches and insider risks.
Key Challenge: Manual record-keeping drives inefficiency, higher labor costs, and risks of misplaced or misfiled documents.
Despite modern legal tech adoption, many firms still assign paralegals or admins to scan, label, retrieve, and refile documents manually — particularly for legacy or closed case files. This not only eats into billable hours but also increases the chance of critical errors that affect compliance and case outcomes. In smaller or mid-sized firms, resource constraints often mean records management tasks are inconsistently handled or deprioritized.
Annex.com Solution: Annex.com helps reduce these bottlenecks with fast digital retrieval. Legal teams may save time, reduce errors, and focus on client work instead of paperwork.
Key Challenge: Disconnected EMRs, archives, and legal databases that can’t “talk” to each other — slowing case preparation and exposing firms to compliance gaps.
Many law firms still use decades-old systems that were never designed for modern compliance or security demands. This lack of integration creates fragmented workflows — for example, digital contracts might be stored in one database while scanned evidence lives in another. This complicates discovery, burdens IT teams with data migration tasks, and makes legal teams vulnerable during audits or litigation. The cost and fear of disrupting day-to-day operations often keep firms stuck with inefficient, outdated systems.
Annex.com Solution: Annex.com facilitates secure digital migration from legacy systems and develops integrations that align with industry standards. Legal teams gain unified, safe access to records across platforms without disruption.
Legal records management is the process of organizing, securing, and maintaining client files, case documents, contracts, and evidence to ensure compliance, security, and operational efficiency.
The four main types are: creation, classification, storage, and disposal—each stage ensures records are properly handled throughout their lifecycle.
The five stages are: creation, distribution, use, maintenance, and disposition. Law firms must follow each step to remain compliant and efficient.
The best approach is to use a centralized records management system that unifies physical and digital files, applies retention schedules, and ensures secure, role-based access.
Compliance rules, security risks, and fragmented records.
Retention depends on case type and jurisdiction; many require 7–10 years.
Encryption, restricted access, and certified workflows protect confidentiality.
Privacy, confidentiality, data security, and equitable access.
The Annex.com marketplace of verified document storage and secure destruction services providers can help provide audit-ready trails, secure retrieval, and compliant storage.
Failing to have a consistent, firm-wide retention and destruction schedule. This leads to unnecessary storage costs for obsolete records and compliance risks if sensitive documents are kept too long or destroyed too early.