As we step into 2026, I'm optimistic about what lies ahead for the legal industry.
For most law firms, 2025 was a strong year. In fact, in its 2026 Report on the State of the US Legal Market, Thomson Reuters says demand for legal services posted its best year in over a decade. This sets the bar high for 2026.
So, what does the new year bring? A few thoughts as we forge ahead:
- Large and Small Firm Performance: Firms will build upon last year’s strong performance. Mega firms will keep expanding their global reach in 2026 to provide expansive services to clients. On the flip side, smaller firms will continue their success by competing on competitive pricing and being early adopters of technology. Judging from the momentum from last year, these firms are taking advantage of positioning and innovation.
- Mid-Sized Firms Remain Under Pressure: The story is a little different for the firms inside the AmLaw 150. Some of these firms are too large to compete on price and agility, and also lack the reach that larger clients demand. We will see more mergers as firms seek to stabilize their spot in the market.
- New Firms Emerging: Last year prompted several talented lawyers to leave big law to create their own firms. The motivators for this move range from culture to the desire to build more nimble approaches to client service.
- The Big Thing for 2026: Undoubtedly, it’s AI! Although AI is still working its way into the legal industry, it’s clear that AI will revolutionize how legal services are delivered. This year will include identifying how AI affects everything from business functions through to client demands for pricing and efficiency and providing the best possible legal services.
Change is definitely coming, and I will be watching closely to see how hiring patterns, compensation structures, firm culture, and technology adoption evolves.
- Jason Caramanico