Top trends UK law firms can expect in 2025

Top trends UK law firms can expect in 2025

The new year will usher in a host of changes, challenges and opportunities for medium and large law firms. These developments, driven by technological advancements and shifting client expectations, present exciting opportunities for growth and innovation. Here are the top trends that law firms should anticipate in the coming year, with a focus on actionable insights.

1. Embracing generative AI for enhanced efficiency

The adoption of generative AI is set to accelerate, with a majority of lawyers already using or planning to use AI tools for work purposes. According to a UUÂãÁÄÖ±²¥ survey, "86% of lawyers at medium and large firms now use or plan to use AI for work."

This technology will enable firms to deliver work faster, improve client service, and gain a competitive advantage. By automating routine tasks such as legal research and document drafting, lawyers can focus on more complex and strategic work, ultimately enhancing productivity and service quality.

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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."

 


2. Shift towards value-based billing models

As AI-driven efficiency becomes more prevalent, law firms will likely move away from traditional billable hour models towards value-based billing. The UUÂãÁÄÖ±²¥ survey found that "39% of lawyers at medium and large firms now expect to adjust their billing practices due to AI."

This shift will be driven by the need to align pricing structures with the value delivered to clients. By focusing on outcomes rather than hours worked, firms can foster stronger client relationships and demonstrate the tangible benefits of their services.

Lawyers need to get ahead of AI otherwise they will find themselves too expensive and redundant, says a General Counsel and Company Secretary at a biotech firm.

"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."

UUÂãÁÄÖ±²¥' Director of Strategic Markets, Mark Smith, says 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 impact of this on price will depend on many different factors – the importance and number of those tasks in the overall workflow, the pricing mechanism at play, the commercial relationship between the client and law firm, and the overall level of competition in that segment of the market."

The focus will soon shift from hours worked to value delivered, says a law firm partner.

"AI will push the legal industry towards value-based billing models as routine tasks become automated, reducing the time needed to complete them.

3. Increased focus on client experience

Client demands are rapidly evolving, and law firms are prioritising the overall client experience over traditional metrics like billable hours. Two-thirds of medium and large law firms report that "client demands are accelerating." Firms are placing greater emphasis on client feedback and profitability of work, ensuring that services are tailored to meet client needs. Isabel Parker, Chief Innovation Officer at White & Case, notes, "Law firms should focus on the client and measure customer satisfaction."

UUÂãÁÄÖ±²¥ found only 34% of law firm leaders believe billable hours are the most important metric for individual performance.

Instead, the focus is now on overall profitability of work and client feedback. Two-thirds (64%) of leaders said profitability of work was the most important, while just over half (54%) said client feedback.


4. Investment in technology and innovation

To stay competitive, law firms are investing in technology and innovation. This includes leveraging data analytics to provide more accurate cost estimates and improve decision-making processes. "Better use of data will be really, really critical for disrupting this billable hour model," says Parker. By embracing digital transformation, firms can streamline operations, reduce costs, and deliver more efficient legal services.

5. Flexible work arrangements and talent retention

Attracting and retaining top talent remains a priority for law firms. In 2025, firms will continue to offer flexible work arrangements, competitive compensation packages, and clear career development opportunities. Moira Slape, Chief People Officer at Travers Smith, highlights, "The current generation of associates have had a mindset shift in the last five years." By fostering a supportive and inclusive work environment, firms can enhance employee satisfaction and loyalty, ensuring a steady pipeline of skilled professionals.

The traditional partnership model is being re-evaluated, with firms exploring alternative career paths and reward structures. This shift reflects the changing aspirations of younger generations of lawyers, who seek diverse opportunities for growth and development. Deborah Finkler, Managing Partner at Slaughter and May, states, "This generation of associates are just more realistic about the likelihood of becoming a partner at their firm."

Download the full report on waning associate appetites for partnership

In conclusion, 2025 promises to be a year of transformation for medium and large law firms. By embracing technological advancements, prioritising client experience, and fostering a positive work environment, firms can navigate these changes successfully and position themselves for long-term success in the evolving legal landscape.

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About the author:
Dylan covers the latest trends impacting the practice of the law. Follow him for interviews with leading firms, tips to refine your talent strategy, or anything technology and innovation.