Professional practices roundtable - Strategic sector insights for the legal profession 2025
Robert Blech · Posted on: October 10th 2025 · read
Leaders from the legal sector gathered at our Peterborough office for a roundtable discussion, jointly chaired by Partners Sarah Dodds and Robert Blech. The conversation was wide ranging and candid, covering growth strategies, hybrid working, AI adoption billing models and regulatory change.
A sector in transition
Growth has become the central strategic priority for mid-tier firms in 2025, driven by both necessity and opportunity. Strategies include developing existing client relationships, pursuing mergers and acquisitions to broaden capability and reach, expanding geographically with new premises and recruiting to sustain growth. Investment in technology was also a key theme. Financing growth increasingly blends internal capital with external funding, though appetite for private equity or alternative ownership remains cautious.
Challenges to growth
Ambition was strong, but growth comes with headwinds. Rising costs, particularly regarding staff and premises, were a persistent concern. Hybrid working and shifting client expectations, along with competition from alternative providers, add further pressure.
Recruitment is a major challenge, with over 40% of firms identifying staffing as their single greatest obstacle.
Generational change is reforming the legal sector. A recurring theme is that fewer young lawyers aspire to equity partnership, and many prioritise flexibility and work life balance over traditional career paths. This shift is prompting firms to rethink leadership models and career progression frameworks.
Communication in a hybrid world
Hybrid working dominated the early discussion. Most firms favour a balanced model, often between two–three days in the office, combining flexibility with opportunities for culture building and collaboration. However, firms are grappling with staff isolation and the loss of incidental learning. Recruitment pressures remain acute, with hybrid working creating both opportunities and challenges. Yet, succession planning is a growing concern, with generational shifts raising questions about the future of traditional partnership models.
During this segment, key observations included:
Email remains the dominant tool for compliance and archiving, despite interest in shifting internal communication to Teams.
Excessive copying and notifications, also known as “death by email”, undermine deep work for lawyers.
Generational differences affect communication preferences: younger lawyers expect immediacy, while more experienced colleagues value reflection.
Informal office interactions remain important for mentoring, relationship building and knowledge sharing.
AI Adoption & Implications
AI emerged as both a success-defining opportunity as well as a real challenge. Around a quarter of firms are experimenting with AI tools for tasks such as onboarding, AML checks, document review and form filling. From this, benefits include efficiency gains, automation of repetitive processes and enhanced document navigation.
However, risks include:
Common factual errors compromise quality
Over reliance on AI is dissuading critical thinking
A loss of foundational learning if certain tasks are replaced entirely
Client expectations are changing regarding value and pricing
Ultimately, most firms are still in a piloting phase rather than full scale adoption, emphasising the need for a careful balance between innovation and risk management.
Billing models under pressure
Traditional billing models are under scrutiny. AI, efficiency drives, and evolving client expectations are accelerating a shift away from the billable hour for commoditised work. Fixed and blended fee arrangements are gaining traction, reflecting a broader cultural shift. Firms are exploring new ways to measure and charge for AI augmented work, balancing cost savings with margin protection.
Future models & ownership structures
With succession planning and funding needs in focus, firms are increasingly exploring alternative ownership models. Options under consideration include private equity investment, public listings such as IPOs or AIM and other structures that move beyond the traditional partnership model. Views on these approaches were mixed.
Most firms favour a balanced model, often between two–three days in the office, combining flexibility with opportunities for culture building and collaboration.
Private equity was seen as offering potential for rapid growth, but with associated risks around cost cutting and cultural change. Public listings were acknowledged as a more stable route, though one rarely pursued. Across the discussion, there was a shared sense that remaining open to evolving structures will be essential for firms seeking to sustain competitiveness in the years ahead.
Regulation & compliance
Regulation is increasingly shaping strategic choices for firms. Rising oversight of mergers and acquisitions involving client accounts, proposed changes to client account rules, and the complexities of third-party managed accounts are creating uncertainty. There is also scepticism about whether the SRA has the capacity to enforce these rules effectively.
Compliance is now seen as a strategic consideration, demanding investment in systems and a clear, proactive approach to governance.
Key takeaways
Overall, the conversation painted a picture of a sector navigating complexity with pragmatism and ambition. Growth ambitions are strong, but firms face interlinked challenges: rising costs, recruitment, hybrid working, generational change, AI adoption, evolving billing models and regulatory pressures.
There is no single model for the future; success will depend on adaptability, investment in people and technology and a willingness to rethink culture and governance.
Top tips for firms:
- Prioritise culture in hybrid models: schedule regular in person collaboration to maintain connection and mentoring.
- Future proof recruitment: create flexible leadership pathways to attract and retain talent.
- Experiment with AI strategically: pilot projects with oversight and share insights across firms.
- Diversify billing models: align pricing approaches to client needs while protecting margins.
- Plan for succession: address generational changes proactively.
- Invest in compliance: centralise oversight to manage complexity efficiently.
Our expert's final thoughts
"What struck me most in our discussion was how growth is no longer just about winning more work. It’s about the type of work that firms pitch for and how to adapt without losing what makes a law practice distinctive. That balance between ambition and adaptability is what will define the next chapter for the profession."
