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There’s no doubt many firms put together outstanding financial performances last year. Still, many bottom lines are getting a boost from flat or negative equity partner growth.
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In the legal industry, volatility, uncertainty, complexity and ambiguity (VUCA) (originally a military concept) have reshaped how law firms operate, requiring legal administrators to adapt to a rapidly evolving work environment. Navigating this VUCA landscape involves balancing hybrid work models, evolving return-to-office strategies, and significant workforce challenges, especially in administrative support.
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Understanding use tax, a tax imposed on goods or services purchased outside a jurisdiction but used within that jurisdiction, is critical. Use tax is meant to complement sales tax by ensuring that items bought from out-of-state sellers, where sales tax might not be collected, are still taxed.
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The legal industry is undergoing a transformation at an unprecedented pace, driven by two powerful forces: the shift to flexible operations and the rapid acceleration of technology adoption. On top of this, clients, often ahead of their law firm counterparts in leveraging technology, are demanding faster, more secure, and more sustainable ways of working. Together, these may be the greatest operational challenges law firms have faced.
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Across the industry, law firms are reevaluating their office spaces to adapt to hybrid work models, prioritize collaboration, and enhance employee experience. Trends such as flexible seating, technology-driven planning, and the creation of multifunctional spaces are shaping the future of law firm offices.
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As hybrid work becomes the new standard, law firms are rethinking how they deliver essential services like mail, printing, and records management. Traditional methods, designed for a pre-pandemic world, are no longer viable. Firms must now embrace innovative, centralized solutions that prioritize efficiency, security, and digital integration.
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With the rise of generative AI, legal, knowledge is becoming worth less, and will become worthless. If GenAI-empowered clients won’t need to buy knowledge from lawyers, what will they buy?
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The qualities that matter most to corporate leaders typically relate to partnership, service, and transparency. Legal teams incorporating these traits more comprehensively into their representation will stand out and create a competitive advantage in 2025, particularly given the heightened preferences for automation and self-service options.
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By all measures, Big Law saw more events and trends in 2024 than the legal industry may have seen in years. But was all that change in 2024 welcome, and what are law firm expectations for 2025?
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Positive 2024 financials in Big Law will likely lead to more cash flow that should be available for law firm innovation, industry analysts say. In particular, law firm leaders are looking to 2025 to further leverage generative artificial intelligence to transform their business.