3 Law Firm Outlooks on 2025 in Trump 2.0

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.