March 25, 2026 [Austin, TX] – SurePoint Technologies, a leading provider of legal software and intelligence solutions, today released its 2025 State of the Legal Industry Report, revealing a legal market reshaped by talent mobility, law firm consolidation, and accelerating technology adoption.
The report revealed that firms of all sizes experienced the highest post-pandemic levels of lateral hiring, a dramatic surge in M&A activity, and meaningful shifts in how firms structure talent and operational models. With 28,659 lateral hires and 59 law firm mergers executed in 2025, the market continued its rapid evolution amid intensifying competition for experienced lawyers and the growing influence of AI in day-to-day practice.
“The data tells us that law firms are restructuring themselves in real time-adapting to new competitive pressures, new technologies, and new talent models,” said Eric Thurston, President & CEO, SurePoint. “2025 wasn’t defined by one event, but by the acceleration of many forces at once. Firms that integrate laterals effectively, invest in technology strategically, and align growth with long-term business objectives will be best positioned in a market that moves faster every year.”
Key Findings from the 2025 State of the Legal Industry Report
- Lateral hiring hit a historic high, rising nearly 9% across both the Am Law 200 and firms outside it. Firms beyond the Am Law 200 set a record with 15,199 lateral hires.
- Am Law 50 firms captured nearly 40% of Am Law 200 lateral hires, reinforcing the growing advantage the largest firms hold in recruiting experienced lawyers.
- Counsel hiring surged 18% in the Am Law 200, making it the fastest-growing role as firms expand non-equity leadership tracks.
- Lateral retention remains a major vulnerability. After three years, retention averages 52% for associates, 61% for counsel, and 76% for partners in the Am Law 200.
- Law firm mergers accelerated, with 59 combinations in 2025, a 25% increase year over year. Two-thirds of the firms were outside the Am Law 200, revealing that consolidation is no longer driven solely by Big Law.
- Partner promotions skyrocketed 50%, creating the largest partnership class on record.
- Laterals now dominate the partnership pipeline, accounting for 70% of all new partners-nearly double the share from a decade ago.
- AI-related risks increased, with U.S. courts documenting 487 AI errors or hallucinations in 2025, more than 10x the total in 2024.
About the Report
The 2025 State of the Legal Industry Report leverages SurePoint’s proprietary, continuously updated dataset tracking attorney movement, promotions, demographic trends, mergers, diversity metrics, technology adoption, and more across thousands of U.S. law firms.
The report also incorporates insights from SurePoint’s Leopard Law Firm Index (LLFI), the industry’s only real-time, size-neutral law firm rating system measuring firm performance and stability.
For more information, view the 2025 State of the Legal Industry Report.
About SurePoint® Technologies
SurePoint Technologies drives Firm Performance by helping law firms operate efficiently, compete effectively, and grow with confidence. Powered by a connected legal technology ecosystem with embedded intelligence, our configurable Practice, Finance, and Growth Solutions streamline operations-from timekeeping, billing, and payments to CRM, talent insights, and business intelligence. By simplifying operations, strengthening financial performance, and supporting sustainable growth, SurePoint unifies the business and practice of law and empowers legal professionals to focus on what matters most: serving clients, leading teams, and creating lasting impact.
Contact
Jen LapierreCommunications Consultant
media@surepoint.com
Am Law 50 firms captured nearly 40% of Am Law 200 lateral hires, reinforcing the growing advantage the largest firms hold in recruiting experienced lawyers.
