Investments in legal tech, and corporate clients' desire for such tech, are going strong. So what is hindering the widespread adoption of legal tech in law firms? A panel at Legalweek said that law firm structuring and their billing models are to blame.

Measuring how efficient a technology is differs among corporate legal departments, outside counsel and other stakeholders, participants on the "With Over $1B in Venture Backed Capital, Could We be on the Verge of Another Tech Bubble?" panel said.

Notably, lawyers are motivated to bill as many hours as possible, which places technology touting automation and greater efficiency at odds with law firms' business models.

"A lot of lawyers bill by the hour and the incentive of the billable hour is not necessarily the best," said Morgan, Lewis & Bockius partner and founder of its eData practice Tess Blair.

Fennemore Craig president and managing partner James Goodnow also noted the structure of law firms differs by firm and makes accessing the tech purchaser difficult.

"There is no clear procurement process for law firms," he said. "Your point of entry could be a CIO, a paralegal or managing partner." In contrast, the procurement role is more defined in corporate legal departments, which is one reason most legal tech companies target their products at in-house clients, he said.

Blair agreed legal is "a tough nut to crack," but she said legal tech companies shouldn't be deterred from pursuing law firms. She noted law firms possess subject matter expertise and data about a plethora of legal matters, which can be an opportunity for tech providers.

What's more, Goodnow argued that outside investment into law firms are the catalyst to pushing law firms to adopt more tech-based solutions.

"If more cash is being infused in law firms, you may get some new thoughts or pressure to be more creative," he said.

However Brad Blickstein, Blickstein Group principal and co-leader of Baretz+Brunelle's new law firm innovation practice, countered that law firms don't need outside investment to stoke innovation and greater tech usage.

Blickstein noted the U.K. and Australia have allowed alternative business structures for law firms for over 10 years, and few have granted nonlawyers equity stakes. Instead, U.S. lawyers need to see technology as an asset and not a threat

"What I'm looking for is the law firms that are starting to say if we develop a new way to do some of this business, we can be more profitable," Blickstein said.