UK law firms’ focus shifting to value, efficiency and productivity
A new report from Thomson Reuters highlights how evolving technology is transforming client expectation of what law firms offer.
UK law firms find themselves working to serve clients whose interests are shifting towards value and efficiency, while simultaneously needing to meet the challenges posed by macroeconomic uncertainty and rapid technological advancements
A new report shows that GCs at UK-based companies are increasingly focused on driving productivity while positioning themselves as strategic partners to the C-suite. This means their outside law firms must go beyond simply providing technically sound advice and start offering solutions that deliver meaningful value. As this focus on value sharpens, the traditional billable hour model is scrutinised, as clients seek more transparent and flexible pricing structures. Today’s GCs are expressing ever-greater interest in value-based pricing and alternative fee arrangements.
The report also highlights the transformative impact of AI and technology on the legal industry. Corporate legal teams are optimistic about AI’s potential to simplify and streamline processes, prompting a reassessment of how and when they allocate work to external firms. Clearly, those law firms and alternative legal services providers (ALSPs) that embrace AI stand to gain a larger share of the market by offering cost-effective solutions to budget-conscious clients. The ability to leverage technology to boost productivity and drive efficiency is becoming a critical differentiator in the legal market.
Clients are under increasing budgetary pressures, which is driving a demand for cost certainty, further feeding desire for value-based services. Clients are looking for firms that can provide tailored guidance grounded in industry expertise and aligned with clients’ broader strategic goals. This means that firms need to be proactive, communicative, and responsive, doubling down on efforts that many have been pushing for years.
Curious to learn more? Download the full report for free today.
