The 2025 Legal Landscape

As we quickly near the end of a year of remarkable opportunities and challenges for the legal sector, the time has arrived to start looking into what the new year will entail for the legal sector. Will the same opportunities and challenges carry over into 2025, or is the industry set to welcome new prospects?

This article will cover some of the key trends that are expected to underpin the 2025 legal landscape, many of which have already made an appearance over the past 12 months.

A continuing rise in Artificial Intelligence (AI)

At present, 82% of lawyers use or plan to use AI technology, this is a substantial increase from 2023 where the figure sat at 39%. This statistic underscores the surging popularity of AI in a sector that is renowned for its heavy workloads, the figure is set to continue rising over 2025.

It is becoming progressively common for firms to expect new associates to come to the firm with, at least a basic comprehension of AI technologies, in fact, many law schools have been expanding their AI course offerings to prepare future lawyers for AI integrated practice.

Despite the vast abilities of AI, it remains unable to be swapped for human expertise in areas such as appreciating the unique contexts of legal scenarios, solving complex issues, critical thinking and legal strategy. Alternatively, it can be used to amplify what lawyers do best and enhance efficiency of such activities.

A decline in hybrid working

The industry is set to experience a reduction in the hybrid working model, the expectation for legal professionals to return to office-based work is increasingly becoming the norm, particularly in larger firms, and 2025 will be no exception to this.

In consideration of the decline in hybrid working, flexibility remains a factor of great importance for individuals, many actually consider flexible working to be the way forward.

Importance of a healthy work-life balance

Work-life balance is considered to surpass salary in being the ultimate deciding factor in whether to join or stay with a firm. This is particularly relevant for Gen Z and millennials, due to the strong, and critical, focus on prioritising mental health and avoiding burnout.

In an industry renowned for its intense workload, and where many professionals acknowledge feeling like they must be available to their clients 24/7, a healthy and positive work-life balance is almost critical. Firms who make this a priority will be able to promote increased productivity from legal professionals and reduced turnover, appealing to the top talent in the industry in doing so.

Litigation

Litigation is a practice area that is already exceedingly demanding, yet despite this, the world of litigation is set to further expand and more become more complex, in view of this, firms are prepared to increase their spending on litigation matters, the BTI Consulting Group found that 57% of legal decision makers are increasing their litigation expenditure. It is also important to note that law firms are becoming more aggressive in litigation.

Diversity, equity and inclusion (DEI)

A focus on DEI initiatives will continue into 2025, however firms will need to adapt their current activities to align with anti-DEI pressures.

Earlier this year, Republican law makers in more than 30 states have introduced or passed more than 100 bills to either restrict or regulate DEI work. The impact of this roll out, may conclude in good intentions and initiatives being limited due to fears over public backlash or legal complications.

Growth sectors for 2025

The most in-demand fields of law are acknowledged as, administrative and regulatory law, privacy law, antitrust law, climate and environmental law and health law. However, next year, demand for legal services is likely to rise in sectors affected by evolving compliance needs, these include commercial trends, supply chain risk management, mergers and acquisitions, drug pricing litigation and SEC rulemaking.

2025 is anticipated to be an exciting and prosperous year for the legal sector, whilst these predictions are merely just that, predictions, it will be greatly intriguing to see which prove to be accurate.

This is the final Legal Lens of 2024, we would like to take a moment to wish everyone a fantastic New Year, filled with happiness and many blessings.