Key Findings on Law Firm Prospects and Outlook for 2025
The Thomson Reuters Future of Professionals Report 2024 provides valuable insights into how artificial intelligence (AI) and other trends are shaping the legal industry’s future. Here are the key takeaways regarding law firm prospects and outlook for 2025:
AI as a Transformative Force
- 77% of respondents believe AI will have a high or transformational impact on their careers within the next five years, up from 67% in the previous year[1].
- 78% of professionals view AI as a force for good in their profession, with particularly strong endorsement from those in risk, fraud and compliance roles (89%) and corporate settings (84%)[2].
Adoption and Implementation of AI
- Exploring and implementing AI is the top strategic priority for 50% of law firm respondents over the next 18 months.
- On average, professionals predict that over 50% of their work will utilize AI-powered technologies to some extent within five years.
- 31% of respondents believe their firm is moving too slowly in AI adoption, potentially risking competitive advantage.
Productivity and Value Gains
- AI is expected to free up approximately 4 hours per week for professionals within the next year, increasing to 12 hours per week in five years.
- This could equate to about 200 hours saved per person in 2025, potentially translating to $100,000 in new billable time per lawyer annually.
- 59% of professionals see opportunities to deliver greater quality and value through AI-powered technologies, particularly in handling large volumes of data more effectively.
Shifting Work Dynamics
- 70% of professionals anticipate that a higher or similar portion of work will be brought in-house within the next five years.
- Simultaneously, 68% expect the value of work sent to outside firms to remain the same or increase.
- This suggests a shift towards more complex, strategic work for both in-house teams and external firms.
Challenges and Concerns
- Professionals express concerns about the accuracy of AI outputs and data security, with almost two-thirds agreeing that data security is vital for responsible AI use.
- There’s a call for responsible AI development, with many professionals favoring certification processes or independent bodies to create standards for AI use.
Outlook for 2025
By 2025, law firms that successfully integrate AI into their operations are likely to see significant gains in productivity and value delivery. The legal profession will likely evolve to focus more on high-value, strategic work, with AI handling routine tasks. Firms that adapt quickly and responsibly to this AI-driven landscape will likely outpace their competitors, while those slow to adopt may face challenges in retaining talent and market share.
