Trends and Challenges in the Legal Landscape (End of 2024 - Beginning of 2025)
As we enter Q4, we can already start looking back on a dynamic 2024 for the legal sector, shaped by social, technological, and geopolitical developments. 2025 promises to be a pivotal year for lawyers worldwide, with emerging trends requiring adaptability and foresight.
Technology Transforming Legal Practice
AI, AI, AI. Artificial intelligence is everywhere. The coming years will be marked by significant transformations due to rapid technological advancements. We are likely just at the beginning of this development. Artificial intelligence and blockchain are becoming increasingly important legal tools, not only for legal research and document analysis but also increasingly for drafting documents and facilitating and documenting transactions.
This has made LegalTech a rapidly growing sector. At Legal Geek in London, there were over 3,250 attendees this year—a 30% increase from the previous year. More than 90% of exhibitors incorporated some form of artificial intelligence into their products. Legal Tech's maturity became evident when the startup Inspira won the Web Summit 2023 Pitch Competition late last year. Inspira uses generative artificial intelligence to democratize and make legal information more accessible to everyone.
As a lawyer, staying informed about the possibilities technology offers to improve efficiency and provide innovative solutions to clients is essential, especially since competitors are already doing so. However, the rise of technology also continues to raise ethical issues, such as privacy and data security. While there are significant opportunities for the legal profession, finding a careful balance between innovation and ethical responsibility is crucial.
Remote Work and Virtual Courts
The global shift toward remote work, accelerated by the COVID-19 pandemic, has also greatly impacted the legal sector. Law firms embraced flexible work arrangements, and court sessions could suddenly take place virtually. Lawyers have adapted to this new reality by becoming skilled in virtual communication and collaboration tools. This development has brought numerous opportunities and will continue to do so in the coming years, though we are also seeing a renewed appreciation for in-person collaboration and interaction. Many firms are gradually increasing the number of days employees are expected to work in the office.
Rise of ESG and Climate-Related Legal Actions
Environmental, Social, and Governance (ESG) issues are gaining increasing attention, emphasizing companies' responsibilities regarding their environmental impact. A study by the Harvard Law School Forum on Corporate Governance shows that ESG-related shareholder proposals at Fortune 250 companies have more than doubled over the past five years. While a counter-movement is emerging in the United States, new European legislation on sustainable reporting is already a reality. The Corporate Sustainability Reporting Directive (CSRD) requires companies to be transparent about their sustainability performance. This will influence the market and lead to additional legal work.
Cybersecurity and Data Protection
With the increasing frequency and complexity of cyber threats, cybersecurity and data protection have become additional concerns for lawyers. The legal sector is responsible for safeguarding sensitive client information and ensuring compliance with constantly evolving data protection regulations. As cyber threats evolve, and particularly as larger clients set higher standards in this area, lawyers and law firms must implement robust measures and stay updated on the latest developments in data security.
Diversity, Equity, and Inclusion
Originating from the Anglo-Saxon market, there is also growing attention to diversity, equity, and inclusion within the Dutch legal sector. Major clients prefer working with law firms that demonstrably embrace these values. Additionally, a tight labor market encourages many law firms to address unconscious biases and promote inclusive workplaces.
