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Corporate counsel tighten purse strings

04 June 2025
Issue: 8119 / Categories: Legal News , Legal services , Artificial intelligence
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A higher proportion of legal work will be done in-house in the next five years, more than half (54%) of UK in-house counsel and a third (35%) of lawyers in private practice believe

However, the shift—attributed mainly to pressure on general counsel to reduce their costs—is not uniformly spread across all areas of legal spend, according to a Thomson Reuters report, ‘2025 State of the UK legal market’. Increased spend is expected on regulatory advice by 31% of corporates, on employment law advice by 10%, and on banking and finance by 12%.

Conversely, 5% of UK corporates expect to reduce their external spend on litigation and disputes.

Both general counsel (64%) and law firms (58%) expect more value-based billing in the next five years and less hourly billing. Four out of ten in-house lawyers also expressed excitement about generative artificial intelligence (GenAI).

John Shatwell, head of legal professionals Europe at Thomson Reuters, said: ‘Lawyers and clients alike are keenly aware that new GenAI tools will shift costs and increase productivity.’

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Writing in NLJ this week, Thomas Rothwell and Kavish Shah of Falcon Chambers unpack the surprise inclusion of a ban on upwards-only rent reviews in the English Devolution and Community Empowerment Bill
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
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