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July 10, 2024
The legal market remains in a state of flux and while there has been some moderation in the rate of expense growth, in order to gain confidence in the remaining quarters, law firms need to make some tough calls and see more positive developments within the market.
In this year’s second Sandpiper Partners roundtable sponsored by Williams Lea, “The Resilient Law Firm,” top law firm and industry leaders, including Williams Lea CEO Clare Hart, shared critical insights into how they continue to foster resilience in a volatile legal market.
Here are the top takeaways from the event:
A shift in new talent checklists
Law firms are struggling to attract and retain top associates, especially with a shift in what newer generations of lawyers prioritize. The prestigious partnership track, once the holy grail, no longer holds the same allure. Today’s associates crave a healthy work-life balance, wellbeing initiatives, and a collaborative environment where they can thrive.
To stay competitive, law firms are undergoing a necessary transformation and transparency is key. Firms are ditching ambiguity and providing clear expectations for the partnership track, allowing associates to make informed decisions about their careers. They’re recognizing that not everyone desires partnership and are developing alternative career paths that cater to diverse goals and interests.
Law is a demanding profession, and more firms are taking mental health seriously. Initiatives promoting well-being are becoming a standard to create a happier and healthier work environment for everyone. Additionally, collaboration is replacing the traditional siloed approach. Fostering a more collaborative culture not only benefits associates but also leads to better client service.
Finally, firms are rethinking the apprenticeship model. The traditional method may not translate perfectly to a remote setting, so innovative ways to mentor and develop associates in this new landscape are being explored. “Whether an employee is hybrid, onsite, or remote, I expect that HR assigns them a buddy to help them navigate their new career with Williams Lea,” stated CEO Clare Hart. “It’s our job to set them up for long-lasting success through transparency and support, regardless of where they are.”
Give the clients what they really want
Today’s law departments demand more than just legal expertise from their law firms. They desire true collaboration, a willingness to adapt, and a drive to prove their value.
“Imagine a law firm that proactively shares ideas and strategies, instead of waiting for instructions,” said one panelist, a law firm client. “A firm that not only steps in to navigate legal issues but also understands the nuances of your specific business. This is the kind of legal partner that modern corporations, like ours, want to work with.”
As corporate budgets tighten and dollars are scrutinized, cost-effectiveness is no longer a bonus — it’s an expectation. Clients aren’t interested in a one-size-fits-all hourly rate. Instead, they are seeking flexibility and creativity from their firms to structure long-term arrangements. Law firms that are willing to discuss different options for flat fees, hourly rate increases and alternative fee arrangements, are more likely to maintain or increase their scope of work. Without this flexibility, corporations will turn to in-house resources or alternative legal service providers.
There’s a vital message here for law firms: Clearly communicate and deliver on your value proposition. Show clients how your unique blend of expertise, industry knowledge, and commitment to efficiency can address their specific needs. In today’s dynamic legal market, the firms that can effectively deliver this recipe for success will be the ones building enduring client relationships.
AI in law: Revolution or evolution
Artificial intelligence (AI) is making waves in the legal industry, promising to transform how lawyers work. From summarizing complex documents to assisting with contract creation, AI has the potential to streamline workflows and boost efficiency. Imagine legal research conducted in minutes, not hours, or contracts drafted with the help of intelligent automation.
However, AI isn’t a magic solution. Studies like Stanford University’s “AI on Trial” highlight the need for caution. AI systems can make mistakes. Data quality is paramount. AI systems are only as good as the information they’re trained on. Ensuring clean, unbiased data is essential to avoid biased or unreliable results.
The jury was still out with our panel. Several panelists argued that AI has made great strides, and if more lawyers would take the time to experiment with these models and improve their prompt writing, both firms and their clients would reap the benefits. Alternatively, panelists pointed out that taking time to become AI prompt engineers and discovering how best to cleanse data was not a good use of partner and associate time.
“Technology is only as good as the people who operate it,” offered Clare. “As AI continues to grow and evolve, it is paramount to find a healthy balance. AI is not something to fear, nor blindly trust. Whether firms decide to dedicate internal resources to training new models or outsource it to experts, the fact of the matter is, this technology is not going away and each firm will have to decide their own best use cases.”
The key to successful AI integration lies in its ability to complement existing practices. Ideally, AI will someday free up lawyers to focus more of their time on the intricate legal issues that require human expertise and judgment and less time on less strategic activities.
To conclude, panelists were asked to provide their recommendations for obtaining up-to-date information on the ever-changing AI landscape. Here are the free resources and thought leaders they mentioned:
- Turing blog
- AI newsletter
- Daniel Linna, Professor & Director of Law and Technology Initiatives at Northwestern Pritzker School of Law & McCormick School of Engineering
- Richard Robbins, Director of Applied AI
- David Cambria, Strategic Operations Advisor, Member of Advisory Board, 273 Ventures
- John Thompson, EY Artificial Intelligence
While the legal landscape presents many challenges, law firms can forge a path to success by seizing the opportunities that arise and adapting to the ever-evolving industry. By staying informed, embracing innovation, and focusing on client needs, firms can not only overcome obstacles but also thrive in this dynamic environment. Learn how Williams Lea can help you navigate the shifting tides and emerging challenges of the legal industry.