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.

Even F-15 fighter pilots are envious of law firm rates. These rate increases are one of the few things on the planet able to accelerate faster than the fastest known fighter jet — the F-15.

These new orbital rates are stunning even for managing partners. But up they go. Just over half of clients say it’s worth it — leaving just under half looking for the value.

The factors driving the value behind the highest rates include:

• Solving an insurmountable problem
• Helping clients reach outsized strategic objectives
• Bringing breakthrough ideas
• Unrelenting in approach
• Nuanced counsel to match personal chemistry and legal objectives
• Diplomatic candor – unafraid to explain why clients might be wrong in their thinking
• All of the above served with exceptional client service

Moving on to the rates. The high rates paid to outside counsel are in the following ranges:

• The highest of the high flyers at $2,100 to $2,620 per hour
• Higher flyers ranging from $1,465 to $1,860
• High flyers ranging from $1,170 to $1,285

We found plenty of rates in the $800–$900 plus range — but the rates above serve as the big demarcation points. There may be a superstition around the $1,000 mark as we found almost no rates at this mark — it always jumped to $1100.

Please join me in congratulating these 32 law firms garnering the highest rates in 2024 — in alpha order:

The only thing likely to grow faster than rates is client expectations. Every rate increase triggers a jump in client expectations. The firms able to jump these 2 hurdles at once enjoy an advantage over the rest.

As you raise rates — whether setting records or not — think about how you will up the client experience. This determines the difference between sustaining your higher rates — or forcing your client to look elsewhere and pay those rates to someone else.

Take a look at who got the highest rates and what they were in 2018 here.

Celebrating the Most Feared in Litigation

For nearly 15 years, top legal decision makers have singled out the law firms they don’t want to see on the other side of the table in litigation.

And these days, the most feared law firms in litigation have been on the upswing — as we’ve seen increasing traffic to the BTI Fearsome Foursome over the past two years.

Clients and competitors alike are searching for the best — to try to hire them — or to try to beat them. How the numbers break down:

Top Posts of 2024 So Far

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:

5 Ways to Increase Your Rates — No Matter What They are Now

Imagine paying exorbitant hourly rates for legal advice and receiving exactly what you expect — no surprises, no breakthroughs, no game-changing insights.

Now imagine this again in a world where 70% of clients want new and breakout ideas to help them. These rates becomes even more mundane.

The BTI Consulting Group’s 2024 Client Service All-Stars aren’t just attorneys; they are the unexpected navigators in uncharted waters. They are singled out for defying the mundane with five distinct qualities redefining client service.

5 reasons stand out as justifying the highest rates:

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. Used by law firms and corporate counsel alike — it remains the pinnacle of client service performance.

The Only Purely Organic Ranking

The only way to be included in The BTI Client Service All-Stars is through an unprompted, unequivocal recommendation from corporate counsel. No law firm or attorney can submit a name or pay to be included. No firm can nominate an attorney or submit corporate counsel names to be interviewed. The 2024 BTI Client Service All-Stars are identified solely and exclusively by clients.

Clients single out 296 attorneys from 148 law firms. Among these attorneys: