The leading North American law firms are undergoing profound changes as a result of the pandemic. They are embracing cloud computing and developing data strategies to adapt to the new digital landscape. The trend of running law firms as businesses has also accelerated, with talented business professionals being hired for non-legal work. The two largest law firms, Kirkland & Ellis and Latham & Watkins, have seen unprecedented financial growth and are leading the way in terms of digital maturity and innovation. Other top law firms are also highly profitable and have practices that can adapt to economic highs and lows. The move to digital and the development of new roles in law firms will have an impact on clients, who can expect greater transparency, accurate billing, bespoke intelligence, and lower costs. The future of law firms may involve fusing technology into their legal advisory services, but for now, it complements the expertise of strategic advisers. The FT Innovative Lawyers North America 2022 ranking and awards scheme assesses law firm success based on innovation, people policies, digital adoption, social responsibility, and financial growth.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Law firms embracing digital and data strategies | Shift from traditional to digital practices | Increased use of technology and data | Pandemic-induced need for efficiency |
| Law firms adopting business-like management approach | Transition from legal-focused to business-focused | More hiring of talented business professionals | Need for profitability and non-legal work |
| Leading law firms outside New York generating high revenue | Shift in revenue generation from New York to other regions | More top law firms originating from non-NY regions | Embracing technology and innovation |
| Top law firms prioritizing digital maturity and innovation | Emphasis on digital technologies and innovation | Increased use of tech and data in legal practice | Staying competitive and meeting client needs |
| Law firms developing new roles and approaches | Introduction of new technologies and processes | Improved client outcomes and lower costs | Meeting client demands and staying relevant |