We are taking a deep dive into the market complexity, spending, growth, and what it means for you and your firm. We have a lot to share in the upcoming BTI Market Outlook and Client Service Review 2025 on January 9^th, 2025, at Noon Eastern.

We will draw on BTI’s 2 brand new reports — The BTI Litigation Outlook and The BTI Practice Outlook — more than 350 new surveys with corporate counsel —  and discussions with over two hundred law firm leaders. We are sharing a treasure trove of new, never-before-released research on such key issues as:

• The single most important — but overlooked — driver in the market today and next year
• Who is really using AI and for what — and the rarely discussed reason why
• Where clients plan to spend all their new money coming with their 2025 budget increases
• The law firms — by name — best positioned to get the new work
• Implications of client’s new selectivity in hiring law firms

We have discussed our findings with more than 100 law firm leaders. And we want to discuss it all with you at the BTI Market Outlook and Client Service Review on January 9^th at Noon Eastern time.

The complimentary webinar is open to BTI Clients,  readers of The MAD Clientist, and friends. Each year we reach max capacity early so register now.

Here are the details — please join us:

Who: You
What: BTI Market Outlook and Client Service Review 2025
When: January 9, 2025 Noon to 1 PM Eastern
Where: Online
How: Register and log in

We are more than 2/3 full – please register now using this link – before we reach capacity.

Get the most authoritative look at what’s happening in the legal market and how to take advantage of it. Register now!

We’ll be discussing these aspects of Generative AI and more at our upcoming BTI Market Outlook and Client Service Review webinar on January 9^th, 2025. Register here.

Attorney searches for ChatGPT are soaring — up over 100% since July of this year.

Google Trends tells us attorney searches have been relentlessly heading up since the end of July. While the what is important — the why reveals how Generative AI is making its way into corporate counsel thinking — and the impact on outside counsel. Here’s why:

Clients Pulling Attorneys Into Generative AI

Clients are sending a growing stream of AI Chatbot-generated documents to outside counsel for comment and review. These documents include:

• Board resolutions
• Contracts
• NDAs
• Employment agreements
• Leases
• Terms of service

Clients know these are drafts and can’t necessarily be relied on, but — they want to verify their content and usefulness. So, they are turning to a trusted source — outside counsel. Clients expect — and largely get — honest assessments — including suggested changes and commentary about risks.

This is an early step in clients figuring out how and where to use Generative AI. Some of the work generated gets used — some not — but it’s a learning process. And — clients get more skilled with every dive into ChatGPT.

Expanding Use Cases

These same corporate counsel are using AI chatbots to:

• Find language in documents likely to trigger risk or other issues
• Comment on law firm work product
• Generate opposing viewpoints to their own to freshen ideas
• Ask for new and different insights on Generative AI-related legal issues

This is in addition to more basic uses, including:

• Writing emails and basic correspondence
• Research
• Searches
• Proofing
• Content development

The Role of Outside Counsel

Requests for outside counsel to review drafts and work product through AI chatbots get attention from outside counsel fast.

As the vice chair of a global firm — working in M&A — said:

“The draft resolution my client generated from ChatGPT was pretty good. I couldn’t tell my client otherwise. I provided some comments and sent them back. I also started diving into how I might use ChatGPT. It’s real.” – Vice Chair, M&A, Global Law Firm

Opportunity and Risk

Attorneys can’t avoid the AI controversy. It is polarizing — and the stakes can be big. But, it remains a rare opportunity to break new ground with a client.

And outside counsel are exploring ChatGPT on their own. Some want to expand their knowledge; others want to be ready for their clients. And another group sees more risk than reward. All of these drive searches — and more use.

No client producing a ChatGPT-based draft document wants to hear their primary attorney decline to comment — or worse — tell them they can’t use it. They are already using it. And they see signs of hope for getting more done. Most importantly — they can shift more high-value work to outside counsel to make up the slack.

Exploring ChatGPT together is a classic client-building exercise. You bond through shared interest and learning. You can also help clients save time and money — while getting yourself access to the more difficult work ChatGPT can’t touch.

We’ll be discussing these aspects of Generative AI and more at our upcoming BTI Market Outlook and Client Service Review webinar on January 9^th, 2025. Register here.

Written rules define the protocols of engagement. Unwritten rules define the relationship. These rules reveal themselves through actions and behaviors. It’s virtually impossible to build client relationships without understanding and embracing the unwritten rules.

But the rules constantly evolve as clients gain more experience managing outside counsel — and adapt to their changing world. We asked more than 350 corporate counsel in our new survey to share the current set of unwritten rules defining the best outside counsel relationships. 7 emerge as the most influential. We discuss each below:

Decode the Legalese for My Boss

The emails corporate counsel can forward to their boss without any edits or explanations are among the best. They save time and make your client look good. They enable their nonlawyer, nonlegal boss to understand the issue at hand.

This is especially true in Labor/Employment, Complex Litigation, Regulatory and contentious IP Litigation.

BTI research shows corporate counsel are receiving more questions and queries from top management than ever before — giving these forwardable emails heightened gravitas.

Navigate and Triage

Corporate counsel face a firestorm of legal issues. They value the outside counsel who puts on a fireproof suit and helps tamp down the fire. Clients say top counsel use their objective and experienced viewpoint to help define the best path forward — this includes a combination of risk assessment, meeting business goals, and balancing workload.

Budget Whisperer

Budget performance is routinely reported outside the legal department. And often reported to people who question corporate counsel budgeting skills. These clients need to know where matters stand — not necessarily to the dollar — but to know if they are on track.

The best counsel brings working knowledge about where things stand. They make sure clients know before problems arise. They know their client’s career may depend on managing it.

Peerism

Corporate counsel point out their lead partners are highly successful. They are admired. They may have reasons for big egos. But it never shows. These outside counsel are always open to ideas, questions, and creative tension. And, they skip the pretense. Outside counsel are peers.

Radar for Red Flags

Outside counsel see a lot. They have systems set up to alert them to the latest issues and thinking, they get ideas from their partners and make sure they funnel them to the client. They use this knowledge to help corporate counsel avoid both common pitfalls and the inevitable, unexpected trap.

We’ve Got This Attitude

In-house lawyers juggle a million things. Outside counsel who exude confidence and take ownership — without needing constant hand-holding — are foundational.

Trust Action

This is a combination of behavior, dependability, strategy, and empathy. In house counsel count on their outside counsel to always be there. Corporate counsel describe top outside counsel as amazingly dependable and able to answer questions before being asked. Looking ahead is part of who they are. Once a client experiences this level of trust with outside counsel — they become THE go-to source.

These actions and behaviors are far from unattainable. They have no technological component. Any attorney who wants to learn these skills and behaviors can. They are proven to increase billable hours and inbound referrals for new business.

Start Small to Go Big

But — social science proves changing behaviors is one of the hardest things to do. So — start by adopting one, or a couple of behaviors. Track budgets close. Look ahead. Look around and talk to your peers to learn. Then share what you may have learned, combined with your own experience.

And never stop adding behaviors. Top rainmakers are always learning — and adding. There is no time like the present.

The economic landscape is littered with layoffs, disruptions like dockworker strikes, aircraft manufacturers strikes, geo-political risks, and catastrophic storms. Add in a whole new set of trade policies and sanctions and you have a lot of questions. And — law firm leaders have gone optimistic.

In light of all this, internationally recognized consultant Patrick J. McKenna and I queried more than 250 law firm leaders about the obstacles to growth — and why you should be asking for those budget increases now.

Rare Unanimous Agreement

Absolutely no law firm leader expects the economy to be an obstacle to growth in 2025. You read correctly. Zero. No one. It is a rare occasion when all law firm leaders see the same thing — especially about growth.

These law firm leaders are feeling optimistic and are moving into an investment mindset. They are investing in:

• • Lateral partners
  • Technology
  • Building out existing practices
  • Positioning for new high-rate/high-value practices
  • Training in soft skills
  • Talent retention

All this says it is time to ask for your budget increase while the investment mindset permeates leadership thinking.

Grab the momentum of the day and mood of the market — which is uniformly good. Be sure to make your request an impassioned plea — dispassionate requests are routinely ignored in any economic environment.

It is naïve to think and ignore what could be irrational exuberance. But all new BTI research (see links below) suggests 2025 will be a robust year.

But — the law firm world is not without its obstacles to 2025 growth. These include:

Rates

Rates keep skyrocketing to the point where a few law firm leaders are pinching themselves. But others worry their orbital rates will get them thrown out of the game — or force corporate counsel budgets to a breaking point. In short — it will stunt growth.

The partners skilled at sharing their strategies, staffing and approach — and updating clients about changes in approach — have less of a problem with rates than all the others.

Wrong Markets

These law firm leaders express concern about lacking presence in key practices. They see the opportunity but don’t see enough resources to capture the opportunity.

This is an opportunity for the under-recognized rising stars to shine through. Every firm has them — and if they remain underrecognized they will be the first to leave. Finding them and putting them in front of clients can overcome 2 obstacles.

Wrong Clients

These law firm leaders see too many clients with limited needs. They see the growth in the high end of the market. The leaders don’t see their clients having those needs.

BTI research shows at least 72% of clients face complex legal needs. There is a better than even chance the prized work is sitting in the client base. If not — success likely lies in bringing in a lateral group, or a merger.

Client Turnover

Client turnover has been growing. Fewer clients want to stick around. These clients cite diluted client service, lack of engagement, and cookie-cutter approaches. In addition, both law firms and corporate legal departments are experiencing increasing turnover — leaving relations to whither as partners leave/retire or new corporate counsel take the reins.

The antidote for high client turnover lies in business development professionals supporting relationships, excellent client service, and client feedback at scale. These strategies embed law firms in client’s inner workings — creating relationships beyond the matter at hand.

The Inflection Point

This isn’t just optimism. This is a strategic watershed moment for the legal industry. When unanimous agreement occurs among law firm leaders — especially about growth — it’s time to pay attention.

The message is clear: 2025 isn’t about surviving. It’s about positioning, investing, and transforming.