Today, law firms face several significant challenges, including growing demand for legal services, an increase in alternative legal service providers, economic uncertainty, and the need to balance work and life. In addition, data security and privacy and evolving customer expectations present ongoing obstacles. Strict controls are also needed to combat money laundering (AML) and the origin of funds, along with increased cybersecurity and checks of online activity, as IT professionals are wary of the increased risk of cyberattacks. In 2024, cyberattacks on law firms increased by 77%.
Our blog on cyber threats highlights how companies can help mitigate the risk of cyberattacks. Artificial intelligence (AI) will further transform the legal industry in 2025, improving efficiency and customer service. Technology is also improving customer interactions through chatbots, predictive analytics and AI-based legal assistants, improving communication and service delivery. While AI can automate tasks, it can't replace the human judgment and empathy that customers rely on.
In 2025, law firms should focus on harnessing AI to improve their practice without losing the human touch. News about the law and how it is practiced has dominated public debate more now than perhaps at any other time in recent history. From historic Supreme Court decisions to unprecedented political changes, and from thorny constitutional challenges to enormous technological advances, legal professionals wonder how these advances can shape the future of their legal practice. Communication within the firm, both internally and with clients, will help establish clear ways of working.
Despite this, technological disruption is causing enormous challenges, such as labor displacement and, particularly in the legal sector, ethical dilemmas and cybersecurity risks. Conversely, if you have an attractive law firm website and brand, but you don't focus on attracting traffic or attracting the right traffic, you're losing potential clients or wasting money. We can help you create an attractive online presence that attracts the best talent and shows them that your company is a place where they can thrive. Get ready for the biggest challenges lawyers face with the evidence-based expert perspectives and practical knowledge of the Bloomberg Law 2025 series.
As with the recent development of privacy and cybersecurity laws, stakeholders are debating whether AI compliance standards should follow state laws or a voluntary national framework. Creating high-quality, informative content that addresses the needs and concerns of potential customers, combined with a strategic approach to SEO, will help companies rank higher in search results and attract that important organic traffic. A general manager of a public technology company described the challenge as an “increasingly complex regulatory environment.” However, it can create challenges, especially when it comes to creating a positive culture and keeping staff engaged. Understanding where these challenges come from and how to address them is essential to answer the question holistically and ensure the continued success and relevance of the legal sector.
Finding talent and ensuring that the team is comprised of people with the appropriate training to address legal and business issues are also aspects of the challenge. With client sensitivity to pricing and the increase in legal services available online, competition in the sector is growing and it is difficult for firms to stand out. Clients expect to easily find information about a firm online, schedule appointments online, communicate through various digital channels (email, text messages, chat), and access case information through secure client portals. Others mentioned that internal teams are responsible for monitoring regulations related to global trade, tax and labor laws.
It's not always sustainable or appropriate to lower prices and be the cheapest, so companies should consider other ways to differentiate themselves. Companies must also conduct regular security audits, implement secure password policies, and provide ongoing cybersecurity training to their staff.