1 in 3 Law Firms All In on AI

The biggest, most unexpected surprise for 2025? Law firm leaders tell us it’s Generative AI.

Both the doubters and the lovers agree on 2 things:

• Generative AI can upend the traditional law firm model in ways no one saw coming
• The change can hit a lot faster than anyone ever dreamed

Law Firm Leaders Lay It Out

The MAD Clientist and internationally recognized consultant Patrick J. McKenna continue our collaboration on a brand-new survey of 250 law firm leaders. We asked these leaders what the most unexpected surprise for 2025 would be. Generative AI is at the top of the list. The results look like this:

• 31.3% say it will be a big disruptor
• 47.3% think it may have a big impact
• 15.2% remain doubtful it will have an impact
• 6.2% characterize it as a big fat nothing burger

31.3% See the Coming Disruption Clear as Day: Law Firms on Notice

For these leaders, AI is set to turn the legal world upside down. No minor changes here — it’s all big. They expect Generative AI to fundamentally alter how law firms operate — delivering:

• Faster more efficient work flows by eliminating attorney work steps
• Better strategies and outcomes for clients
• Improved and more personalized client service
• Higher rates and margins — based on higher value
• Solutions to privacy and confidentiality challenges, rather than barriers
• Superior work products in a sea of legal complexity

47.3% are Hedging Their Bets — It May Have an Impact

Virtually half of law firm leaders are in wait-and-see mode. They see AI’s potential, but questions around regulation, security, and effectiveness make them cautious. Can AI really deliver in high-stakes legal scenarios? They’re skeptical, but they’re not writing it off.

The big risk here lies in mobilizing when the disruption hits.

15.6% Don’t Think AI Will Shake Things Up — Doubting the Impact

This group believes AI might be useful for minor tasks, but it won’t fundamentally change the way law firms operate. They see it as a helpful tool, not a disruption. A few think firms making big splashy investments are throwing money away.

6.26% Say AI is a “Nothing Burger”

For a few, AI is just another fad. It won’t have any real impact on the legal industry and see no reason to change their approach.

Perfect Time for Scenarios Planning

Scenario planning — an exercise used to evaluate uncertainty — is one ideal tool to help decision-making. It informs thinking and drives new perspectives. The key steps include:

• Define the key questions — what will be Generative AI’s impact on law firms
• Invite key stakeholders — law firm leaders, business professionals, clients, objective observers of the legal world
• Analyze the current state of play
• Consider multiple scenarios
• Define a range of changes to the state of play
• Challenge every assumption and conclusion
• Define likely scenarios
• Rank the likelihood of the scenarios
• Define key decisions and actions impacting the firm
• Develop a detailed action plan

The Gambles Law Firms Face

Doing nothing and going all in are both gambles. Whenever almost 1 in 3 law firm leaders are going all in it pays to take a deeper dive. It bears close watching — whoever can disrupt the law firms can win big. The good news: You don’t have to be first — you have to be the most impactful — and keep being the most impactful.

Place Your Bets

The time is now. The winners will thrive. Even if it is a fad and a big fat nothing burger — the firms investing now will emerge with:

• A deeper understanding of their firms
• An immeasurably clearer understanding of the client experience
• New tools developed to fill needs identified irrespective of AI

They will enjoy vastly better performance and gain an edge. The investing firms win either way.