Do Process! January 2024
Legal Trends for 2024: A Look Ahead.
By Senta Johnson
As 2024 revs up as swiftly as 2023 came and went, it is important to note the evolving legal landscape here in the U.S., Here, we will dive into our 2024 legal trend predictions.
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Rise of AFA’s
It goes without saying that working in law involves long hours. We noted that 97% of American law firms bill by the hour as of 2022. In the same year, we discovered that only thirty percent of their workdays could be billed. Despite the fact that this has been the default approach for decades, clientele is demanding change. Possible unethical incentives and a wide margin of error, such as duplicate charges, are linked to tensions surrounding the billable hour. Alternative Fee Arrangements, or AFAs, are being accepted by law firms all over the world. For example, fee caps, blended rates, and contingencies. This will ultimately aid in strengthening client relations and creating a valuable and competitive marketing strategy.
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Continued Work-Life Balance Objectives
Over the last few years, legal teams have become accustomed to spending the workday from home. Regardless of the slow abatement of the pandemic, 75% of attorneys intend to keep the virtual workspace the norm rather than an exception. This remote shift has not only improved work-life balances but also increased operational efficiency and legal service accessibility. There will certainly be more of this to come in 2024.
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Climate Litigation
Another visible trend across the country has been holding businesses responsible for their environmental impact. As a result, interest in Environmental, Social, and Governance, or ESG, issues has grown. According to the Harvard Law School Forum on Corporate Governance, the number of ESG-related shareholder proposals made by Fortune 250 companies has doubled within the past five years. Consequently, we anticipate that shareholders and investors will be pursuing counsel in an attempt to hold companies legally responsible for their sustainability commitments.
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Confronting AI
Of course, a conversation of legal trends would fall flat without mentioning artificial intelligence, or AI. This past year was particularly historical with a significant number of lawyers being sanctioned for their use of AI, and the courts can no longer see “misunderstanding” of technology as a justification. However, we cannot deny that the development of AI will reshape all corporate fields, including law. With the help of these tools, things like legal research and the accessibility of legal advice will improve (see our article on Future of Law Firms in the Age of AI). We predict some kind of federal action to encourage caution when applying AI to cases. For instance, the courts might demand certifications stating that the legal firm produced all legal documents without using artificial intelligence or stating that human editors verified the accuracy of any text produced by AI and submitted to the court.
Never forget that success in the 2024 legal environment will depend on your ability to remain proactive and mindful of these potential trends!