Princeton, NJ—Withum, a Top 25 advisory and accounting firm, released its 2023 Law Firm Leadership Annual Trend Report with data from this year’s Law Firm Leadership Survey.
Firm Managing Partners, Chief Executive Officers and others in leadership roles were surveyed on their perspectives on AI, cybersecurity, succession planning and more in a market that has cooled in recent years. Looking to the future and focusing on the protection and security of the firm is an overreaching theme across subjects, and firm leaders are expected to pivot financial KPIs to keep up.
As the world continues to mull over generative AI, law firms, too, consider the benefits of AI and how it can be used to improve operations. While 38% of respondents stated that they expect AI to enhance the business, 40% were unsure. Respondents have major concerns about AI, like algorithmic discrimination from bad data, and over 70% showed concern about AI’s inability to fact-check.
Another AI concern that respondents reported is cybersecurity, which remains the highest priority for law firms in the next 12 months. Migrating to the cloud and securing the accounting and financial system management is paramount to law firms, who expect to invest heavily in these areas.
In cooperation with a constantly changing business environment, law firm leaders are adapting to a culture of adaption, rewriting their plans to cater to the future, including evolving succession plans to cater to multiple generations of lawyers in one practice.
This protective and future-centered mindset is shared across the industry. Firm leaders are considering the prosperity of their businesses and investing in security more than ever.
How will law firm leaders grow their firms in a down market?
Law firm leaders remain cautious about the coming twelve months. While 57% of respondents expect a moderate increase in revenue, that number is down over 30% from respondents last year.
Download the report for more information on the risks leaders identified that threaten their cash position, and how they pose to overcome them.
Withum’s Law Firm Advisory Practice established the survey in 2021 to bring industry insight to law firm leaders looking to keep up with trends coming out of the COVID-19 Pandemic, and the resulting report continues to guide firms through ongoing industry disruption and business challenges. The team is passionate about helping clients evolve with the market and stay one step ahead by combining traditional advisory services with an innovative focus.