The 2025 LawVision Strategic Pricing Survey lands at a moment of heightened uncertainty in the legal economy. Just one year ago, confidence was noticeably higher across firms. Today, despite continued upward movement in billing rates, the undercurrent is different. Questions are emerging about how long the trend can last, how firms can sustain pricing discipline, and what role AI will play in reshaping strategy. The survey data provides both reassurance and warning, offering a call for stronger pricing leadership and sharper workflows, even as the industry wrestles with volatility and change.
Are Economic Headwinds About to Break Rate Trends?
For now, the rate story remains strong. Nearly 75 percent of respondents reported rate increases exceeding six percent, and 85 percent expect this momentum to persist through fiscal 2025. The picture for 2026, however, is more complicated. Litigation and regulatory practices show strength, fueled by compliance, public policy, and regulatory demand. By contrast, transactional practices such as corporate, real estate, and M&A face headwinds tied directly to economic uncertainty.
This divergence raises the central question: Will economic volatility eventually break the steady march of rate increases? For the moment, resilience is holding. Yet firms cannot assume this dynamic will continue indefinitely, particularly as client pricing fatigue becomes more visible.
Surprises in the Legal Economy
The survey also reveals surprises, and not always the positive kind. A striking 75 percent of partners still do not know their fair value, and more than half, 54 percent, do not understand the relationship between pricing and profitability. Perhaps even more concerning, nearly one-third of firms cite too much partner freedom, stuck rates, and process informality as major obstacles.
This disconnect underscores a critical tension. Firms invest heavily in rate strategies, yet many of their lawyers lack the knowledge and tools to defend or apply them effectively. Without a disciplined process, surprises become costly mistakes. These missteps include underpricing work, granting unnecessary discounts, or missing opportunities to align pricing with profitability.
The Discipline of Workflows
One of the survey’s clearest lessons is the importance of workflows. Fully 75 percent of firms highlight managing discounts and documenting exceptions as essential workflows. Others point to creating AFAs, identifying stuck rates, and conducting strategic assessments at intake as high-value processes.
The message is straightforward. Workflows are complex to build, but they repay the effort. Once in place, they break down silos and reduce the informal habits that leave money on the table. They also normalize pricing conversations within firms, transforming them from occasional debates into standard operating practice. For firms that are serious about profitability, pricing discipline is no longer optional.
The Power of Pricing Teams
Talent remains another critical piece of the puzzle. According to the survey, 72 percent of respondents rely on distributed or newer pricing teams, while only 28 percent report having mature or sophisticated structures. That finding suggests a significant opportunity. Strategic pricing success is achievable with various structures, but risks increase without dedicated teams.
Hiring trends reinforce this point. Pricing professionals remain the single strongest role in planned hiring, with 40 percent of firms reporting active recruitment. Data professionals are equally in demand, with half of the firms planning to hire analysts or data scientists. This investment signals recognition that pricing is no longer a back-office function. It is becoming a core lever of firm strategy. The challenge is ensuring firms give these roles real authority, not just titles.
AI: Slow, Uneven, but Inevitable
No discussion of pricing today is complete without AI. Here, the survey shows both promise and frustration. While firms acknowledge AI’s potential, 80 percent report they have not yet realized significant productivity gains. Meanwhile, 60 percent say their pricing approach has not changed due to AI, although 40 percent are beginning to adapt or plan to do so.
This uneven impact reflects reality. AI is still early in its adoption curve. For pricing leaders, the question is less whether AI will reshape firm economics and more how quickly firms can build the data and workflows to capture its value. Early adopters who connect AI to disciplined pricing processes will be positioned to lead. Late movers may find themselves outpaced not only in efficiency but also in the sophistication of client conversations.
Pulling It Together
The 2025 survey paints a picture of a market that is both resilient and vulnerable. Rates continue to rise, but underlying conditions are shifting. Surprises in partner behavior and economic volatility could erode hard-won gains. Workflows and pricing teams have never been more important, serving both as safeguards and as engines of strategic advantage. And while AI has yet to deliver transformative productivity, its eventual impact on firm design and pricing is undeniable.
For leaders, the takeaway is clear. Discipline, investment, and foresight are the watchwords. Rates may hold for now, but only firms that tighten their processes, elevate their pricing professionals, and experiment intelligently with AI will thrive in the next wave of market change.
How We Can Help
As your firm prepares for fiscal 2026, our Rate Design Services can help you assess market conditions, unify your rate structure, and develop rate strategies that reflect both fair value and competitive positioning, and ensure lawyers are equipped to communicate those rates with confidence.
We also recently launched the Strategic Pricing AI Advisor, a practical tool that supports lawyers in real time with pricing insights, objection handling, and profitability guidance. This advisor bridges your data and your workflows, making pricing discipline easier to achieve across the firm.
If you would like to learn more, reach out to explore how these services can strengthen your firm’s pricing resilience in an uncertain economy.
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