Law firms are likely to enter 2025 with a sense of optimism—and a fair share of apprehension at potential disruptions on the horizon. With associate salaries—and rates—reaching record levels, many are questioning just how sustainable the current situation is, and whether a fundamental redistribution of corporate legal spend is imminent.  
 
What is clear, however, is that law firms need to adapt to a changing market—and culture—to survive and thrive. Age-old law firm business models and structures are being challenged not only by the far-reaching automation that gen AI brings, but an aggressive job market of professionals who hold different values and expectations from generations past.
 
Many expect law firms to continue to experiment with different business models and partner pay structures in the new year, though it remains to be seen whether more far-flung changes—such as the evolution of legal regulations—will accelerate in 2025, or similar to years past, remain stagnant.