At our Leadership Circle in collaboration with Lexington Consultants, held on the morning of 2 November 2025 ahead of IBAToronto, a select group of over 100 law firm leaders explored how law firms can navigate today’s inflection point, where technology, talent and trust intersect.
We had a lively discussion, and the points below capture the main themes and conclusions that emerged from the session.
1. “Old & Wise” scenario, a mirror for many firms
The case study featuring a fictional law firm “Old & Wise”, captured the leadership tensions shaping the sector: innovation vs. tradition, short-term profit vs. long-term investment, and the challenge of aligning generations around AI adoption and new pricing models.
2. The data tells a story of divergence
UK market data reveal a split: the Top 10 firms ( by global revenue) are growing by raising fees, while firms ranked 11–25 rely on longer hours and overseas growth. The old levers – hours, leverage, cost – are being replaced by governance, ownership, and strategy. So what’s driving the change?
3. Redefining value and reward
Firms that were early adopters of AI are already achieving higher profit margins. Going forward, the way that lawyers are evaluated will depend on connecting performance with collaboration, innovation, and measurable client impact, rather than simply focusing on billable hours.
4. Clients are moving fast
Understanding the value that you provide to clients in the AI world is key. As in-house teams use AI to cut cost and time, they now expect co-innovation from their advisers – data-driven insight, faster delivery and shared accountability.
5. Trust, technology, and transformation
Responsible AI use demands new policies, training, and transparency. It’s not whether we use AI but how visibly and responsibly we do so.
6. The leadership challenge
To thrive, leaders must foster open dialogue, realign incentives, and invest decisively in people and technology – balancing trust, transparency and transformation. The traditional law firm pyramid model is coming to an end.
In summary, the future belongs to firms that turn trust and technology into strategy – not just efficiency.
Thank you to everyone who joined us for such a lively and thought-provoking discussion!
