Weathering Economic Uncertainty: How the Legal Industry Adapted—And What Comes Next

Nowadays, you may’t a lot as examine your telephone or activate the TV with out being hit with tales about inventory market volatility, rising inflation, and international unrest. Naturally, many authorized professionals are feeling uncertain about what this financial uncertainty holds for the way forward for their practices. 

Amid the noise, it’s price taking a breath and remembering: whereas in the present day’s financial local weather may really feel unsure, regulation corporations have been right here earlier than—and are available out stronger on the opposite facet. 

4 years in the past, we weathered comparable financial uncertainty because the COVID-19 pandemic upended our day by day lives. Throughout this time, many attorneys did greater than survive the pandemic—they really tailored and thrived, laying the inspiration for a extra resilient and tech-enabled manner of working towards regulation. 

There’s good purpose to be assured in your potential to adapt. Throughout the pandemic, we spoke with a whole bunch of attorneys, tracked key metrics throughout tens of 1000’s of regulation corporations, and captured real-time responses from the authorized neighborhood as occasions unfolded. On this weblog put up, we’ll delve into this analysis to discover how regulation corporations have made it by previous financial uncertainty and uncover what’s doable when the authorized career embraces innovation. 

The early days of the COVID-19 pandemic: The authorized career beneath stress

Shortly after the World Well being Group (WHO) declared COVID-19 a pandemic in March of 2020, we reached out to authorized professionals to get a way of how they have been navigating challenges related to it, gauging their feelings, attitudes, and behaviors towards the newfound financial uncertainty within the course of. 

Their responses have been unsurprising. Corporations reported that purchasers have been unable to pay their payments, enterprise was slowing, and employees have been being laid off. Throughout the board, authorized professionals have been involved:

76% of respondents reported experiencing extra stress and nervousness than they’d earlier than the pandemic. 
60% of respondents famous a lower within the variety of potential purchasers reaching out to their observe for authorized providers. 
24% of respondents noticed a rise in forfeited income as a result of their purchasers couldn’t afford to pay their authorized payments. 

Legal professionals additionally reported that they weren’t panicking, however somewhat making ready for the worst-case state of affairs. The uncertainty was palpable. However amongst these challenges, corporations shortly started to regulate their operations. 

Adapting to the “new regular” 

How have been attorneys responding to those adjustments? Many regulation corporations needed to shortly adapt to the gap necessities demanded by the COVID-19 pandemic, that means there was a sudden shift in the direction of distant work and digital illustration. Nonetheless, practically one-third of attorneys reported that their agency was doing extra to get new purchasers than they’d previous to the pandemic, and over one-quarter thought of increasing their observe areas to widen the potential market. 

The overwhelming majority of attorneys pointed to expertise as a essential issue of their agency’s survival. Notably, 88% believed that attorneys might serve purchasers significantly better if extra components of their observe have been automated with expertise. 

Reflecting on the position of expertise in occasions of uncertainty 

Whereas pandemic-related pivots like distant work and digital conferences have been initially crucial for regulation agency operations, they shortly advanced right into a aggressive benefit. Over time, expertise didn’t simply assist corporations keep afloat; it truly positioned them to thrive. When reflecting on the position of expertise because the pandemic waned: 

68% stated that expertise had considerably helped them ship higher shopper experiences. 
Corporations that leveraged on-line funds, Consumer Relationship Administration (CRM) software program, and shopper portals reported stronger enterprise efficiency throughout the pandemic and an total larger quantity of casework and income on a per-lawyer foundation all through 2020. 
72% believed that cloud expertise was important to the well being of their observe within the close to future. 

Authorized professionals weren’t the one ones who tailored

The seismic adjustments the COVID-19 pandemic delivered to the authorized career didn’t simply have an effect on regulation corporations—they have been a part of a wholesale shift in how trendy companies function and set a brand new precedent for customer support. What started as a brief answer shortly grew to become the brand new regular. Purchasers now anticipate the choice of distant conferences, seamless communication, and quick service—not simply as perks, however as a baseline.

The important thing takeaway? Expertise strikes shortly, and so do your purchasers’ wants. Investing in expertise whatever the financial local weather isn’t a luxurious: it’s a key step in future-proofing your regulation agency. 

Your blueprint for weathering financial uncertainty

Feeling unsure in regards to the future? You’re not alone. However keep in mind: because the COVID-19 pandemic confirmed us, adaptation in periods of uncertainty can finally result in success. Legal professionals who embraced change early have been well-positioned to serve purchasers, keep worthwhile, and climate disruption, whereas those that caught to conventional methods of working confronted a steeper climb. 

The identical classes apply in the present day. Whether or not you’re a solo practitioner or half of a bigger agency, your potential to adapt will form not simply how properly you climate financial uncertainty, however the way you develop inside it. With the appropriate instruments in place, what may really feel like a problem in the present day might turn into a chance tomorrow. 

The place does the information come from?

The insights we depend on have been drawn from analysis carried out throughout the COVID-19 pandemic—from in-depth interviews and biweekly surveys to year-over-year evaluation in our Authorized Tendencies Studies. We spoke with a whole bunch of attorneys, tracked key metrics throughout tens of 1000’s of corporations, and captured real-time responses from the authorized neighborhood as occasions unfolded, exhibiting what’s doable when attorneys embrace innovation. 

We printed this weblog put up in Might 2025. Final up to date: Might 2, 2025.

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