NetDocuments predictions on how AI will continue to shape the legal sector in 2025
It’s predicted that AI will continue to shape the legal sector, touching on areas such as its impact on curbing the mental health drain, contract renewals and recruitment.
AI will drive a need for more lawyers, not fewer – Jennifer Poon, Legal Solutions Director at NetDocuments
“Just as the advent of the internet sparked concerns about technology replacing jobs, AI has long been viewed through a similar lens of fear and uncertainty. However, the reality is quite the opposite for the legal sector. Although there has been concern that AI will replace lawyers, in 2025 AI will increasingly create more opportunities for them, not fewer.
“At a top level, because AI is democratising access to advanced legal tools, more legal cases will be put forward. This means that AI will be creating opportunity across the board – meaning we need more lawyers, rather than fewer.”
AI will help curb the mental drain on legal industry talent – Jennifer Poon, Legal Solutions Director at NetDocuments
“The legal industry is facing an exodus of talent, with almost one third of legal professionals considering leaving, or having already left, the industry due to mental health, burnout or stress. Firms know they need to take action to turn the tide – and AI holds the key. Firms that can empower lawyers to use AI to their advantage will be able to prevent an exodus of talent.
“Firms need to ensure AI is making employees’ lives easier, thoughtfully introducing it to existing workflows and central tools – such as a DMS, so it does not add further tasks onto to-do lists. By providing AI capabilities following proven use cases, from summarising documents to drafting letters, firms will ease the burden on legal professionals and put them in a stronger position to deliver.”
Law firms will explore more flat fees and subscription models – Dan Hauck, Chief Product Officer at NetDocuments
“The increased use of AI will drive law firms to rethink how they deliver and charge for services in 2025. By automating routine tasks and enhancing efficiency, AI reduces the time it takes to undertake certain tasks. As a result, some law firms that have long relied solely on the billable hour will begin to explore alternative fee models that better reflect the value provided to clients. More than half of legal professionals already expect AI-driven efficiencies to impact the prevalence of the billable hour, and law firms will start giving this serious consideration in the new year.
“There are a number of different approaches to consider, such as unbundling services or using hybrid models, to enable firms to remain competitive and reflect the value AI is bringing to modern legal practices. Firms that researching different billing models, such as flat fees, subscription and hybrids, will set themselves ahead of the curve of client demand.”
AI credentials will influence tenders and contract renewals – Jill Schornack, VP Product at NetDocuments
“In 2025, businesses will increasingly expect their partners—consultancies, service providers, and agencies—to share their focus on AI-driven performance. Contract renewals and tenders will hinge on demonstrating a commitment to leveraging AI. Clients will demand clear evidence of measurable benefits, and those who fail to fully embrace AI risk being left behind in a landscape where innovation is no longer optional.”
Recruitment will increasingly focus on AI abilities and knowledge – Jill Schornack, VP Product at NetDocuments
“Next year, the rise of AI will push businesses to rethink how they hire and manage talent. According to Deloitte, three-quarters of enterprises are expected to change their talent strategies in the coming years. This shift includes creating many new AI-focused roles, like AI Ethics Officers and Generative AI Specialists.
“At the same time, many businesses are redefining traditional roles to incorporate AI tools and skills. Whether hiring for AI-specific positions or not, recruiters will increasingly prioritize candidates with AI knowledge. Companies aim to build a workforce with diverse AI skills, preparing them to adapt to emerging trends in 2025.”
