At the start of the year, we outlined bold predictions for the legal industry in 2025—from AI adoption and billing models to political disruptions and mergers. Now that we’ve passed the halfway mark of 2025, it’s time to take stock of what we’ve gotten right so far, what surprised us, and what it all means for legal professionals navigating an increasingly high-stakes landscape.  

Here’s where the predictions landed, and where reality diverged:

AI Adoption: Gaining Traction, Slow Integration

We predicted that AI would become a baseline necessity by 2025. According to our 2024 In-house Counsel survey, 36% of legal professionals utilized AI daily. The survey responses revealed that traditional technologies remained dominant, with 70% using document management systems and 64% using electronic legal research systems.

That survey also found that AI-powered contract lifecycle management (CLM), document review, and research tools topped legal departments’ tech wish lists for FY 2025. However, 18% of respondents said they had “no specific needs” or “didn’t know” which tech would be most helpful. This suggests that the profession is still grappling with how best to integrate AI. While the interest is undeniable, AI’s transformation into a “core necessity” may take longer than forecasted.

To assess whether those expectations materialized by mid-2025, we turned to legal media coverage: 

• Firms continue to press forward with AI integration. According to Business Insider, top BigLaw firms like DLA Piper, Gibson Dunn, Sidley Austin, Ropes & Gray, and Morgan Lewis are embedding generative AI tools into workflows such as document review, research, risk detection, and billing ops.

• A Thomson Reuters report found firms with clearly defined AI strategies are twice as likely to report revenue growth related to AI and 3.5 times more likely to realize significant AI benefits—yet only about 22% of firms have a visible AI roadmap in place.

• The same Reuters report indicates that AI is being adopted five times faster than prior innovations like cloud technology. Still, firms must remain careful to manage risks, including hallucinations, citation errors, and data privacy concerns.  

• Additionally, Reuters cited the Morgan & Morgan case, which highlights the danger: fabricated case citations in court filings due to AI hallucinations led to potential sanctions.  

Together, these contemporary stories show that AI adoption is real—and potentially transformative—but only when executed with intentional strategy and oversight. 

Cost Control and AFAs: A Direct Hit

One of our most accurate predictions was the growing dominance of alternative fee arrangements (AFAs). Our prediction about alternative fee arrangements (AFAs) came from our 2024 In-house survey: we cited rising internal usage numbers and the role of generative AI in cost reduction. 

Nearly 65% of respondents used AFAs in 2024, a significant increase from pre-2023 levels. Fixed and flat fees were by far the most popular model, adopted by 95%, followed by capped fees (62%) and blended fees (46%).  

Meanwhile, 64% of legal departments reported insourcing more work, and 56% said they’ve shifted work from BigLaw to smaller firms. Clients are prioritizing predictability, value, and outcomes over prestige. Generative AI is helping: 30% of respondents use it to reduce legal spending.  

As of mid-2025, external reporting supports this momentum. For example, law firms have experienced notable revenue growth driven by demand and billing rate increases. A Reuters report on Citi and Hildebrandt notes a roughly 11.9% revenue increase in 2024 across U.S. firms, as part of a broader push toward predictable fee models and value-based billing.  

Meanwhile, alternative legal service providers (ALSPs) are adapting to client demand by integrating AI and subscription-based services, suggesting that cost-conscious legal buyers continue to drive demand for alternative pricing formats. 

This confirms that cost control via AFAs remains a top strategic imperative. 

Transparency in Practice: PROWESS Delivers on Its Promise

We predicted that technology would usher in a new era of transparency between in-house teams and outside counsel. The Leopard PROWESS platform is proving that the forecast is correct.  

A national mid-market company struggling with costly litigation and opaque hiring processes used Leopard PROWESS to reimagine its approach to selecting outside counsel. By accessing attorney-level data across 400,000 professionals and 5,800 firms, they built a blended panel that combines legacy firms and newly discovered talent. 

The result: better pricing, better fit, and a more objective, data-driven process.  

With tools like benchmarking, RFP management, and individual attorney profiles, the company gained visibility into firm performance that would’ve been impossible through traditional referrals. The case demonstrates that tech-enabled transparency is no longer a future goal — it’s happening now.  

That shift is reinforced by the recent partnership between Onit and SurePoint, which integrates Leopard Solutions’ data directly into the Onit Unity Platform via CounselMatch. Legal departments can now vet and manage outside counsel with unprecedented precision, seamlessly within the tools they already use. It’s a powerful endorsement that the transparency we envisioned is not only real but expanding. 

Mergers and Talent Mobility: Bold Moves, Real Friction

We accurately anticipated a return to strategic consolidation. Case in point: the $2.6 billion merger between McDermott Will & Emery and Schulte Roth & Zabel, creating a 1,700+ attorney powerhouse. 

While the merger signals a new cycle of growth, the integration challenges validate another Leopard insight: the race for talent is a double-edged sword. Despite a projected 68% retention rate, the firm may experience a 27% net decline in headcount. This is largely due to cultural misalignment, divergent compensation models (e.g., $2.6M partner pay at Schulte vs. $1.9M at McDermott), and differing associate promotion tracks. 

The merger highlights the need for intentional, people-first integration strategies. And McDermott-Schulte is far from alone: 2025 has already seen a wave of notable combinations.

• Troutman Pepper and Locke Lord formed Troutman Pepper Locke  
• Womble Bond Dickinson merged with Lewis Roca Rothgerber Christie 
• Ballard Spahr merged with Lane Powell 
• Taft Stettinius & Hollister merged with Sherman & Howard 
• Herbert Smith Freehills and Kramer Levin formed Herbet Smith Freehills Kramer 

Law firms may be growing, but talent retention — not acquisition alone — will determine their future strength. 

We correctly saw the pressure to evolve. However, the pace of change remains deliberate and client-led.

Policy and Politics: Quickly Reshaping Law

We anticipated that a second Trump administration would drive increased legal work in energy and infrastructure. Federal deregulation has delivered on that, especially in D.C. and major industry hubs. But the forecast underestimated the ideological and cultural pressures now reshaping the legal job market. 

Executive Orders like 14173 have effectively weaponized DEI programs, triggering EEOC investigations into 20 major firms. Law firms are being scrutinized not just for how they hire, but for who they represent. Those with federal contracts are pulling back from DEI initiatives, fueling internal friction and reputation risks. 

Younger attorneys, particularly from underrepresented groups, are increasingly wary of firms retreating from stated values. In our 2024 Gen-Z Associates Survey, junior associates ranked firm culture (74%) and reputation (67%) as top priorities. 

Andrew Yang recently noted that AI is replacing tasks once done by junior associates—a trend highlighted by Above the Law as one with major implications for hiring and malpractice exposure. This shift reinforces the cultural tension we flagged: young lawyers are focused on values, identity, and firm alignment. 

While we accurately predicted economic shifts, we underestimated the deeper moral and cultural reckoning now reshaping the profession.  

Conclusion: A Strong Forecast with Blind Spots

At the mid-year mark, our predictions have largely proven accurate: cost pressure is driving AFA adoption, the return of mergers is underway, the slow creep of AI is evident, and the growing demand for transparency is becoming increasingly obvious. 

Yet, where the forecast fell short was in underestimating cultural inertia and the intense political headwinds now influencing firm identity and recruitment.  

The takeaway? As the legal profession navigates an era of technological change and ideological scrutiny, the firms best positioned for success will be those that not only adapt their tools but also redefine their values and operating models in the process. 

Adaptability and integrity — not just innovation — will be the true differentiators going into 2026. Evolve or get left behind.

How Leopard Solutions Can Help Shape the 2H of 2025

Whether you’re navigating mergers, evolving your pricing strategy, or trying to build a more transparent, data-driven legal department, Leopard Solutions can help. 

With powerful platforms like Leopard PROWESS and Leopard BI, we equip legal professionals with the insights, tools, and data they need.  

Let us help you finish the year stronger. Learn more.