2025: What lies ahead?

what lies ahead 2025 graphic

MD Communications today launched a new report, ‘What Lies Ahead: 2025’, highlighting optimism amid industry and geopolitical challenges.

Artificial intelligence, salary races, and ‘staying human’ are at the top of law firms’ agendas in 2025.

The UK legal sector is overwhelmingly positive about the growing role of artificial intelligence in its work, while greater UK government stability, giving hope of a ‘reset’ with the EU, contributes to optimism around what 2025 will bring.

  • Overwhelming majority of respondents view AI as a ‘friend’
  • Most either don’t believe City law firm wage inflation is sustainable, or are ‘unsure’
  • 63 per cent feel more optimistic about 2025 than they did about 2024

However, lawyers will be presented with balancing the demands of justifying ‘telephone number’ salaries and the adoption of AI, against the pressure to merge firms and the drive to improve workplace wellbeing and equality.

These are among the conclusions from MD Communications’ annual legal sector outlook – ‘What Lies Ahead’ – based on private practice and in-house views of the evolving landscape in 2025. Contributors also shed light on how the sector is navigating transformative challenges and opportunities in technology, workplace culture, and geopolitical risks.

Melissa Davis, CEO of MD Communications, reflected on the findings: “The new year is the ideal moment to reflect on what the next year might bring. The legal profession, while competitive, is filled with individuals eager to share their insights. This year’s standout finding is that the legal sector feels positive about the opportunities ahead. Clearly, they all like a challenge. Many wanted to talk about ethics and workplace culture, highlighting the importance of the office as a place to connect and collaborate.”

Christine Braamskamp, London Managing Partner at Jenner & Block LLP, said: “There are opportunities in all these challenges, meaning there is plenty of interest to engage with, which is exciting. While political times are turbulent, there’s stability in knowing where we stand. For these reasons, I’m more optimistic about 2025 than I was about 2024.”

Alison Eddy, Partner Ambassador for Inclusion and former London Managing Partner at Irwin Mitchell, highlights the need for inclusive support structures, and said: “I’m especially pleased to find my peers viewing developments that affect us all through an ethical lens. Firms need to actively support women in leadership pathways, ensuring hybrid arrangements don’t unintentionally create a two-tier workplace where those in the office receive more mentorship and opportunities than their remote counterparts.”

Key findings:

  • 86 per cent of respondents view AI as a ‘friend,’ underscoring its acceptance.
  • Despite AI’s potential to disrupt traditional models, 63 per cent believe firms should not lower fees due to AI adoption.
  • Clients express scepticism about funding escalating newly qualified salaries in the City, with 44 per cent of law firm professionals and clients unsure about sustainability.
  • 94 per cent affirm the importance of office spaces for collaboration in a hybrid work environment.
  • 46 per cent of respondents feel clients are not mindful of advisers’ wellbeing.
  • 63 per cent of respondents are more optimistic about 2025 than 2024

 

Media coverage

Our white paper has been featured in the legal press, in the Law Society Gazette.

In the Seen and Heard section, Alison Eddy’s comments are featured extensively. Alison, Partner Ambassador for Inclusion at Irwin Mitchell, wrote the foreword and also contributed extensively to the content of the report.

Alison says: “Hybrid working is another talking point for anyone who manages their firm or chambers. It offers autonomy, but it must be coupled with policies that ensure visibility, collaboration, and equitable opportunities for promotion.”

She continues: “Firms need to actively support women in leadership pathways, ensuring that hybrid arrangements do not unintentionally create a two-tier workplace where those in the office receive more mentorship and opportunities than their remote counterparts.”

Read Alison’s column in the Law Gazette

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