The legal industry stands at a transformative crossroads as we approach 2025, with technological advancement and changing client expectations reshaping how law firms operate. From the widespread adoption of AI to fundamental shifts in billing models, here’s what’s driving change in the legal sector.
The AI Revolution in Law
The numbers are compelling: 86% of lawyers at medium and large firms are either using or planning to use AI for work. As Jonathan Kewley, Partner and Co-Chair of the Global Tech Group at Clifford Chance, emphasises, “It’s important that lawyers are familiar with AI technology in the same way they are with the internet now.”
Rethinking the Billable Hour
Perhaps the most significant shift is occurring in how legal services are priced. With AI driving efficiency, the traditional billable hour model is under scrutiny. According to LexisNexis research, 39% of lawyers at medium and large firms expect to adjust their billing practices due to AI.
A General Counsel at a biotech firm puts it bluntly: “The billable hour rewards inefficiency. AI removes the excuse of hours spent, so private practice lawyers will have to change the way they measure their contribution.”
Client Experience Takes Center Stage
The data reveals a striking shift in priorities:
- Only 34% of law firm leaders consider billable hours the most important metric
- 64% prioritise work profitability
- 54% emphasise client feedback
Isabel Parker, Chief Innovation Officer at White & Case, advocates for this change: “Law firms should focus on the client and measure customer satisfaction.”
The Human Element
Despite technological advances, talent retention remains crucial. Moira Slape, Chief People Officer at Travers Smith, notes, “The current generation of associates have had a mindset shift in the last five years.” This has led to:
- Increased focus on flexible work arrangements
- Re-evaluation of traditional partnership models
- Enhanced emphasis on career development opportunities
Looking Ahead
Mark Smith, LexisNexis’ Director of Strategic Markets, provides perspective on the future: “Properly trained and grounded generative AI can ultimately underpin certain legal tasks being undertaken faster and at higher quality than that done by a human alone.”
The message is clear: success in 2025 will belong to firms that can balance technological innovation with human expertise while keeping client value at the forefront of their strategy.
Read more: Future of Law
