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.

Words say so much — but not always what we intend. These unintended messages leave a bigger imprint than any intended message. And few of those sending the messages ever know it.

We uncovered 8 phrases clients are hearing — and it’s driving them crazy — or worse. These come across loud and clear. And right out of our just completed large-scale survey of more than 350 corporate counsel.

“That’s what it costs to work with a firm like ours”

Few messages bring the sting of opacity than telling clients it is what it is — when queried about high fees and higher rates. This statement brings a presumption of obvious value — what clients are already questioning. It also tells the inquiring corporate counsel they are ignorant of the firm’s presumed stature.

The better answer is something like — I am using the best team to solve your problem (or meet your goal). If I overstepped please let me know and I will be happy to walk through everything we did to ensure we communicate the compelling nature and scope of our work.

“I didn’t get to it yet — but it’s on my radar”

This is a way outside counsel says “I didn’t meet the deadline or expectation” or “ I didn’t get to it.” What clients hear is: “I have other — more important — things to do.” Their matter is not near the top of the list. This phrase is a mere single step away from “I don’t care.”

Clients understand timing can get derailed. But, they want to know they are a priority and important to you. And they want to be aware of any changes to the timeline they rely on to make promises to their bosses. And — tell them if you are going to miss a deadline.

“That’s a business issue — it’s not for me to comment”

Virtually every issue corporate counsel face is rooted in a business issue. And more clients than ever are involved in helping their companies transform their businesses. A decline to comment is telling clients you don’t understand what they face in their world.

So many lawyers are uncomfortable commenting on business issues. However — you have other options. You can ask another attorney about the business implications. You can also help clients go through a pro/con analysis from a business perspective and remain a neutral party.

“It’s your decision”

Clients want your counsel and advice. This includes an unequivocal recommendation to solve a problem. Your declination removes your advice from the equation. And removes the bulk of the value you bring. Corporate counsel rely on their primary attorney for their advice and recommendations — the legal prowess is a bonus.

“No”

Clients explain it’s so easy to say no, and a “no” can put clients in a position where they have a lot of explaining to do. More than 60% of corporate counsel tell us they are trying to get to yes — especially in settlements, regulations, M&A, Financial Services, Health Care, and Tech.

“You don’t get it”

Clients see this as one of the cardinal insults. Even if they don’t “get it” — an attorney has a responsibility to explain the situation so clients get it. The best attorneys see these situations as helping clients learn new knowledge and as an opportunity to collaborate with clients.

And — it is hard to recover from this dismissal. You miss the value of listening to what your client is taking issue with and why.

“I’m super busy”

As one client tells us — “Welcome to my world. I have an unfathomable workload. It’s the way of the world. And this tells me they are probably too unfocused to make me a priority — and are too busy to be considered for new work.”

Clients become concerned about capacity when their attorney talks about how busy they are 3 or more times. It’s considered a sign of stress and overwork. Outside lawyers may be expressing enthusiasm or sharing how they are when clients ask — or worse — explain why deliverables are late.

Nothing… as in Radio Silence

Clients fume when they need an answer or update — and find outside counsel missing in action. Corporate counsel rely on these updates, changes, and status to update their management. Outside counsel silence easily makes clients look bad.

Law firm leaders are often surprised their partners use these phrases with clients. They have a built-in assumption partners know what to say to clients. Many do — but it’s the ones who don’t who cause the damage to themselves and the firm.

We are seeing more and more law firms define etiquette standards for video meetings. These standards include attire, discussion points as the meeting comes to order, demeanor, and how to look at the camera instead of the screen. It may be time to develop communication etiquette and training, as the cost of unintended messages is both large and enduring.

By contrast — check out the 6 phrases clients want to hear from you.

Click here to download a PDF of today’s blog post: 8 Critical Trends Driving Spending on Outside Counsel in 2025.

It’s ugly out there. The fire hose of legal issues facing clients is open at full force. This translates into 3 overarching impacts:

1. Clients face a legal firestorm — they are hell-bent on getting ahead of it
2. They expect law firms to provide the resources to quench this storm on all its fronts — they don’t have the in-house resources
3. Top legal decision-makers are going to spend more on outside counsel than ever before as a result

Tapping into this spending demands your firm anticipate how your clients are getting ahead of the firestorm. Show them the path.

Corporate counsel are putting serious money behind this — adding 6.8% to their outside counsel spending. Be the firm they choose to guide them.

Clients are Searching for the Right Law Firms

The barrage of new work demands a different kind of thinking and service delivery than just 3 years ago. 79% of clients plan to bypass RFPs and cherry pick from referrals and thought leadership.

Learn exactly what clients want in each practice — and land the business while clients are still open to new firms.

Target Acute Need and Premium Rate Opportunities:
The Single Most Popular (and Useful) Chart in the Legal Spending World

Our most popular and powerful chart to help target your business development. Clients have more acute needs — and they are industry-specific. For example:

• High Tech clients face 13 points of acute need
• Pharm is dealing with 11 points of acute need
• Food/Agritech is managing 9 points
• Healthcare faces 9 points of acute need
• Consumer Goods are dealing with 9 points

Spending hot spots — aka premium rate opportunities — for 18 industries and 15 practices — all in one easy-to-read matrix. Your practice leaders and partners can see exactly where clients have the most acute need. Actively target clients in the industries with higher needs for access to increased spending and premium billing rates. Only in the BTI Practice Outlook 2025: Clients Face the Legal Firestorm and Brace for Unprecedented Challenges.

The 2025 market will continue to separate the more client-centric law firms from the rest. Clients are awarding the new and complex work to the firms who understand them and bring great ideas. It’s hard to get one without the other.