2025 Predictions: Driving Profitability for Law Firms and Optimizing Operations
As we approach 2025, the legal landscape continues to evolve rapidly, shaped by technology, shifting client expectations, and emerging business challenges. Legal operations, sustainability, talent management, and fee structures are transforming as firms adapt to market demands and new technologies. The following predictions from leaders across the SurePoint team explore the future of the legal industry, offering a roadmap for law firms to navigate emerging trends and remain competitive in an increasingly dynamic environment.
AIAI Integration Will Drive Cross-Functional Legal Teams
“Law firms will increasingly adopt multidisciplinary team structures to harness the transformative potential of AI. The demand for legal professionals with expertise in AI, data science, and technology will grow as firms integrate AI into daily operations. Leading firms will invest in dedicated AI specialists to spearhead initiatives, ensuring faster and more impactful adoption of AI-powered tools. For mid-sized firms without the resources to hire in-house specialists, partnerships with external counsel specializing in AI will become a strategic necessity, enabling them to remain competitive. This shift underscores the vital role of cross-functional expertise in shaping the future of legal practice.” — Njama Braasch, Director, Security, SurePoint Technologies
Change Management Will Be Key to Scaling Legal Innovation
“Change management will emerge as a critical function, with leaders championing new tools and foster a culture of continuous improvement. Achieving smarter, faster, and more efficient operations requires more than just adopting new software. Scaling growth will depend on integrating technology with optimized processes and people-centric change management. Success won’t come from technology in isolation—it will require firms to reengineer internal processes and actively engage their teams in the transformation journey. Firms that underestimate the time, effort, and leadership needed to align people, processes, and technology risk stalling progress and failing to realize the full potential of their software investments.” — Olivia Mockel, Chief Operating Officer, SurePoint Technologies
Alternative Fee Agreements Will Define the AI-Driven Legal Landscape
“In 2025, AI will continue challenging traditional law firm models, particularly those centered around the billable hour. While AI drives greater efficiency and effectiveness, it inherently reduces the hours required to complete tasks, raising concerns for firms deeply tied to this metric. Forward-thinking firms will seize this opportunity to shift towards alternative fee agreements (AFAs), such as flat fees, which allow them to maintain profit margins while delivering better value to clients.
This pivot will increasingly serve as a competitive advantage, enabling firms to serve more clients efficiently and foster stronger client relationships by aligning incentives. As AI continues to influence the legal industry, firms that embrace AFAs will position themselves as innovative leaders, proving that profitability and client satisfaction can coexist in the modern legal landscape.” — Laura Leopard, Founder and GM, Leopard Solutions
Transparent Billing Models Will Deepen Client Trust
“Activity-based billing will accelerate dramatically as law firms offer transparent, flexible, and outcome-driven pricing models that align with client needs by focusing on collaboration, clear communication, and measurable impact.” – Mike Suchsland, Chairman, SurePoint Technologies
Transparency Revolution: How Legal Tech Will Redefine Law Firm-Client Dynamics in 2025
“In 2025, advancements in Leopard’s PROWESS platform for outside counsel selection will drive unprecedented levels of transparency between law firms and their corporate clients. Traditionally, the relationship has been perceived as a "black box," with limited visibility into billing practices, case progress, and client-law firm communication. Technology will bridge this gap, enabling open assessments that highlight client concerns and improve communication. For corporate counsel, these tools will help address long-standing distrust of the billable hour by providing clearer insights into value delivery—whether the goal is winning a case or simply closing it efficiently. Transparency will not only reduce costs but also foster stronger, trust-based partnerships, positioning firms that embrace these tools as leaders in client satisfaction and long-term relationships.” — Laura Leopard, Founder and GM, Leopard Solutions
Salary Wars in Law Firms Will Reach an Inflection Point
“In 2025, cracks will begin to show as a result of the ongoing escalation of salary wars in law firms as we begin to reach an inflection point. Pay raises, which surged after the pandemic, are pushing entry-level salaries higher each and every year. While clients have understood that these pay hikes coincide with increased billing rates, this model will become unsustainable in the near future. Corporate counsel, frustrated with rising legal costs, will likely start walking away from firms that fail to offer competitive alternatives.
As firms continue this high-stakes salary game, the risk of alienating both clients and talent becomes ever more real. Gen Z workers, who are more focused on work-life balance than compensation alone, will drive firms to reevaluate their approach. Law firms that do not adjust to this shift risk losing top talent, particularly as younger generations increasingly demand flexibility and balance over financial compensation. For firms that fail to adapt, the future could involve not only financial strain but also a talent drain that will impact long-term growth and success.” — Laura Leopard, Founder and GM, Leopard Solutions
Succession Planning: A Critical Imperative for Law Firm Stability
“Law firms must prioritize succession and talent management strategies in 2025 as an aging leadership demographic begins retiring, taking with them decades of experience and client relationships. Firms must focus on internal succession and proactively nurture and preserve client relationships. The next generation of attorneys, often lacking the same depth of client connections, will need robust mentoring and training to build their books of business. Remote work has further diminished opportunities for traditional, hands-on mentorship, making intentional development plans crucial. Investing in relationship-building and transferring knowledge will ensure long-term firm stability and client retention.” — Laurence Winters, Chief Client Officer, SurePoint Technologies
Transactional Work to Surge Amid Deregulation in Legal Hiring
“The legal job market in 2025 may see transactional and advisory work rise as deregulation accelerates, reducing compliance demands but driving M&A, tax planning, and corporate restructuring. White-collar defense may stabilize as enforcement eases but with continued activity in proactive compliance. Energy and infrastructure sectors could dominate legal hiring, while environmental and labor law demands may contract. Overall, total open jobs should remain steady, peaking in early 2025 as firms adapt to new policies, creating regional surges in Washington, D.C., and industry hotspots tied to policy shifts in energy, healthcare, and technology.” – Craig Savitzky, Director of Content Creation, Leopard Solutions
M&A Resurgence Will Fuel Outside Counsel Spending and Talent Acquisition
“In 2025, the legal industry is poised for significant growth in both outside counsel spending and lateral hiring, driven by a resurgence in M&A activity. Over the past few years, the M&A market has experienced stagnation, with fewer deals moving forward. However, as the political and economic environment stabilizes in the wake of administrative changes, controls on M&A activity are expected to ease, unlocking a surge of pent-up dealmaking activity.
Law firms will respond to this anticipated burst in transactions by ramping up lateral hiring, filling gaps created during the slowdown, and ensuring they can meet the demands of their clients. Firms that strategically invest in talent and position themselves to capture the upcoming wave of M&A work will be at a distinct competitive advantage, leveraging this period of market dynamism for long-term growth.” — Laura Leopard, Founder and GM, Leopard Solutions
Legal Operations Will Shape Strategic Decision-Making
“In 2025, legal operations will expand its influence by breaking down silos and integrating more deeply with other business functions like finance, IT, and HR. Cross-functional collaboration will allow firms to implement unified systems that streamline financial, practice, and client management processes, driving efficiency and better aligning operations with broader business goals.
To thrive, legal ops leaders will prioritize training their teams in emerging technologies and business of law disciplines such as project management and financial analysis, enabling them to provide strategic value beyond traditional operations tasks. With this expanded expertise, legal ops will play a critical role in firm-wide decision-making, particularly in risk management and governance.
Community engagement will also become essential. With remote work reshaping collaboration, peer networks will serve as vital sources of shared best practices and innovation. Firms that embrace strategic partnerships with both in-house teams and external vendors will gain a competitive edge, improving client satisfaction and operational efficiencies through shared goals and technology-driven solutions.” — Laurence Winters, Chief Client Officer, SurePoint Technologies
To explore additional insights from the SurePoint team, read "2025 Predictions: AI, Emerging Technologies, and Data Security Redefine the Legal Landscape," highlighting the critical intersections of technology, regulation, and operational efficiency.
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