Overview
- The 2026 Thomson Reuters/Georgetown survey reports legal demand averaged 2.5% in 2025, peaking at 4.4% in July for the strongest growth since the financial crisis.
- Profits per lawyer at Am Law 100 firms are up roughly 54% since 2019, with the average firm’s profits rising about 13% in 2025.
- Firms increased technology spending nearly 10% year over year and lifted lawyer compensation by more than 8%, reflecting rapid uptake of generative AI tools.
- Roughly 90% of legal spend still flows through hourly billing, creating friction with AI-driven efficiency gains as clients spent less per hour on average in 2025 despite 7.3% rate hikes.
- Midsize firms captured more growth late in the year with nearly 5% demand gains while Am Law 100 demand stayed under 2%, with strong deal activity cited as a driver across practices.