Law firms’ outlooks on the legal market are as divided as the nation.

We asked more than 1,000 attorneys and client-facing business professionals in December 2024 how they saw the economic outlook for 2025 for their firms. The results look like this:

• 29.5% see 2025 as an amazing year
• 67.8% are optimistic but equally cautious at the same time
• 2.6% are outright pessimists

The BOLD: Thriving on Volatility

29.5% of firms are bold and confident. Change and regulatory volatility are fundamentally good for business. Demand will remain robust whatever ways the policy winds blow — and no matter how fast they come and go. And a pro-business environment drives high-rate needs. These firms:

• Dialogue with clients about specific concerns and questions — and advise
• Planned for both election outcomes — starting analysis before the election to gain a head start
• Know clients’ needs are compelling
• Believe in their highly developed strategic plans

They are grounded in client dialogue, market intelligence and business intelligence. They are tracking the leading edge of client needs and trends and have their finger on the pulse of the market.

The Cautious: Hesitant but Hopeful

67.8% of firms see opportunities on the horizon. But — are not sure about when they will appear. They are waiting to implement strategies and tactics to take advantage of the economy. They cite the following:

• Uncertain regulatory frameworks preventing action
• Rate shock — rates are so high clients are bailing at signing us up
• Strategic delays — 2025 tactics and strategies are still in development
• AI-induced delays — market outlooks are a distant 2nd place in priority to AI
• Talent restricted — 2025 success is dependent on recruiting the right laterals

These firms are only partially committed to strategy and approach. Cautious firms are looking for a signal — or need to overcome a barrier — before going full-blown optimistic.

BTI research shows a robust market for 2025. Clients have broad needs and compelling issues impacting business operations. You can kickstart your efforts to develop this new business with the following recommendations:

• Reach out to top clients to understand their priorities
• Discuss client’s most vexing issues with them
• Offer opinions on client’s strategy and directions
• Network a small group of clients together to discuss trends and impacts
• Introduce partners in your firm to discuss issues outside your domain

The recommendations drive the BOLD and can immediately help the cautious. You can also jump-start your efforts with our 2 newest reports:

BTI Litigation Outlook 2025: More Complexity. More Growth. More Spending.

Immediately spot the high-rate opportunities for 8 practices in 18 industries — the most detailed roadmap to opportunity in litigation. Learn why complex work is the fastest growing segment — and the firms (by name) best positioned to get the work.

BTI Practice Outlook 2025: Your Guide to Spending on Outside Counsel

The BTI Practice Outlook 2025 details client spending plans for 15 practices cross-referenced against 18 industries — and the business development tactics to get the work. Clients face the largest barrage of legal issues in our time. Learn who this work is going to and how to get it now.

For more — check out my discussion and analysis of industry opportunities in the newly posted recording of BTI’s 16th Annual BTI Market Outlook and Client Service Review 2025.

Law firms will be busy — or have the opportunity to be busy — over the next 12 months.

Clients are trying to break through the growing demands, risks and complexities of the economy and the legal world. As we discussed in our 16^th Annual BTI Market Outlook and Client Service Review — legal spending is poised for another record year — and record rates.

But the biggest increases in spending for outside counsel are clustered in key industries and practices. Outsized growth and rates depend on targeting these clients.

BTI’s 2025 forecast — based on detailed responses from more than 350 corporate counsel and 23 years of analysis — reveals the top growth practices and industries. This is where clients with the fastest growing legal spend live.

Use these coordinates to turbocharge business development and target clients with climbing spending and needs. We discuss each below:

Labor and Employment Leads

The top drivers for the fastest-growing practice include:

• • An activist workforce
  • Regulations at the state and federal level
  • Union activities reaching levels not seen since the 1960s
  • Social activism — with workforces protesting against employer positions on geopolitics, DEI, sustainability, and social issues

In addition, the growing wave of layoffs and back door layoffs through return to office mandates top off the needs demanding immediate client attention.

Litigation

Clients face a record number of cases. They are spending at record levels to resolve it.

High-stakes matters are surging. They are the fastest-growing segment. These exceptionally risky matters consume the bulk of client mind share. Risk is sky-high due to new and novel matters — and the skyrocketing size of the financial claims.

M&A

Large companies sit on enormous pent-up demand. Midsize and smaller companies are targets. These smaller clients are making acquisitions of their own.

Companies are looking to acquire technology and digital-first companies. There is also a robust market for divestitures as companies look to strategically streamline operations.

Bet-the-Company Litigation

The number of bet-the-company matters is up an almost stunning 4-fold over last year. Little of this work is going out to RFP.

Clients broadened their definition of bet-the-company as more threats can pose a devastating blow.

Class Actions

More companies face class actions than ever. Like litigation, class actions are more complex. Clients suggest courts are allowing more diverse classes and novel claims to get certified. The stakes are bigger than ever — and clients see no end to the deluge of claims.

IP Litigation

The keywords in IP Litigation are: intractable, aggressive and bigger.

Technology owners and developers are out looking for infringers — and don’t want to settle. Claims are bigger as technology moves more into businesses’ critical path.

At the same time — defendants are mounting aggressive defenses.

Private Equity

Sitting on more new investable funds than ever — look for PE firms to ramp up activity. Deal closings will increase — as will exits.

These investors are looking for new deal structures. They also want to develop new capital structures to both boost returns and attract new funding.

The ability to understand a client’s industry is one of the most powerful law firm differentiators in the market. You can sharpen your understanding of the industry and opportunities by looking at the dynamics of the fastest-growing industries. These include:

High Tech

With more than 13 acute legal needs Tech is the fastest growing industry. These needs range from complex litigation to new and boundary-defining litigation — especially in AI. IP strategies and data privacy remain in strong demand. Large and small M&A are a key focus.

Financial Services

These clients are developing a new array of financial products. Most are complex and designed to boost returns — they also bring new and unseen risks. This drives the need for regulatory analysis and new litigation.

Pharma

A few big Pharma companies are enjoying blockbuster hits. Others are building their product pipeline through acquisitions and joint ventures. These clients want dealmakers who understand these industry regulations, relationships, and nuances of how things get done.

Food/Agriculture

Increasing M&A activity, regulatory oversight, and new products drive 9 acute legal needs.

Deal activity is up as companies look to grow in key markets. Food companies face intense regulations and are looking to understand how to leverage new product lines and formulations within these frameworks. Food technology is playing a larger role with new products and existing offerings — requiring novel approaches to IP protection.

Health Care

A flurry of competitive pressures, consolidation, labor issues, and standard of care issues drive Health Care to be one of the fastest-growing industries for outside counsel needs. These clients need capital to maintain or improve market position — and meet all the regulatory demands of delivering services.

Consumer Products

The race for new products is bringing a flurry of unwanted litigation and claims. These clients are embracing social media to market products and engage customers. This social media outreach is attracting new and novel claims including impacting mental health and causing overeating.

New product introductions keep increasing — and adopting technology is increasing at the same rate. This is driving business but results in unexpected performance or other impacts — bringing litigation.

You can get all the details and target business development strategies for 18 industries cross-referenced against 15 practices for the best opportunities in the newly released report: BTI Practice Outlook 2025.

You can also view our discussion and analysis of industry opportunities in the newly posted recording of BTI’s 16^th  annual BTI Client Service Review and Market Outlook 2025.

Client’s naming the best of client service, brand new law firm rankings, business development’s evolution, what your prospects want, and practice highlights top the most popular Mad Clientist posts of the first half of 2024. Use these to drive growth, retain clients, and improve the culture.

Each post still offers new insights and strategies. Here are the top posts of 2024 so far:

The Best in Client Service:

Clients Single Out the BTI Client Service 30 2024 — Law Firms Best at Client Service
Clients — more than 300 of them — identify the law firms best at client service — along the 17 dimensions they say are the most crucial drivers. Corporate counsel point to 207 law firms out of the 650 competing for the business at mid- and large-size companies.

64 Law Firms with the Most Improved Client Service
Only 64 law firms managed to improve client service performance in 2024 — according to corporate counsel. This equates to just shy of 10% of all law firms. And client service still remains the biggest differentiator among law firms.

The BTI Client Service All-Stars — Clients Single Out 296 Attorneys from 148 Firms for The Best Client Service
Only clients can pinpoint the attorneys who are best-of-the-best at client service. We asked them to pinpoint these individuals by name — these are The BTI Client Service All-Stars. This research, the report, and the online directory serve as the gold standard to uncover the best.

New Rankings for 2024:

Clients Single Out the Law Firms on the Leading Edge: Helping Clients Implement Strategic Change
More than 80% of clients are going through a business transformation. 67% of corporate counsel are playing a mission-critical role in this transformation — and they single out the law firms best suited for this high-value new and novel work. These firms are best at delivering on the all-new expectations arising from clients changing how they do business.

All 121 Law Firms Best at Meeting Novel, New, and Strategic Needs
Complex, new, and novel matters are driving the market — as are transformational and strategic M&A. These create new demands for clients — who are enjoying the challenge — and their outside counsel. Clients tell us 121 law firms deliver on one or more of 5 new demands, at scale.

67 Firms Best at Cost Control — And You’ll Never Guess Why
Say goodbye to protracted rate negotiations. You can also skip the mandatory rate cuts, RFPs, elaborate reporting protocols, stringent oversight, and micromanagement — all of which are the typical reaction to cost control. The days of draconian cost management are over for now.

Business Development Evolves:

Law Firms are at a Business Development Tipping Point
Business development is about to get a lot harder. Or not. A lot of law firms are making big bets on this fundamental question behind market success. Our flash survey of more than 1,000 attorneys and law firm leaders reveals the split on business development getting harder or not.

Breaking Down Law Firm Business Development Cultures: Struggle or Strategize
A BTI flash survey of almost 700 attorneys reveals decidedly different law firm business development cultures. Underappreciated and maligned by some — worshipped by others — business development is creating the next strategic and cultural divide.

What Your Prospects are Looking For:

The Most Searched for Law Firms of 2023
While law firms scramble for keywords and algorithms, a select few are winning the real game — generating searches for their firm by name. No more hoping someone stumbles upon your website in a vast digital ocean. These clients are seeking you out, pre-qualified and ready to engage.

9 Reasons Clients Remember Pitches and Meetings
Corporate counsel hear a lot of pitches and talk to a lot of attorneys — an average of 22 a month at last count. They report hearing a lot of noise and routine data about current matters — or in a pitch, they hear about endless numbers of matters and statistics. Of these conversations and meetings — top corporate counsel define 9 circumstances triggering a coveted place in corporate counsel memory banks.

Industry and Practice Highlights:

Top Growth Practices and Industries for 2024
Client spending remains resilient — fueled by new needs and lingering issues, more companies than ever are pursuing innovative business models and adopting digital processes. We found 6 industries with outsized increases in spending.

11 Best Practices to Make Your Industry Groups Thrive
Virtually every new regulation and court decision brings unique industry-specific impacts. Your ability to bring this insight is the difference between being invited in without competition or being left out of the conversation. And — getting much higher rates.