Big Law Leaders Enter the New Year Facing Growth, AI and Workplace Shifts
Large firms are stepping into 2026 with clear priorities: disciplined growth, stronger retention, and practical AI adoption. Last year brought consolidation at the top end, geopolitical uncertainty, and new executive actions aimed at law firms. The message from leadership: stay focused, make measured moves, and protect culture while you scale.
Growth Is the Default Strategy
Most Am Law firms expect to grow, which means competition for laterals will stay hot. Consolidation has given some competitors room to push compensation higher, raising the bar for everyone else.
Jaime Drozd, managing partner at Davis Wright Tremaine LLP, put it plainly: "That competition for talent is increasingly fierce," adding the firm is prioritizing hires that strengthen existing capabilities, not just headcount. Jeff Cody, global managing partner at Norton Rose Fulbright, said the firm screens laterals on a "10-plus-year horizon," trading volume for fit and long-term value.
- Decide your three priority practices for 2026 and align lateral targets around them.
- Build an integration checklist (BD plan, top-50 client mapping, cross-sell targets, 90/180/365-day milestones).
- Price discipline: define comp bands and the business case threshold before talks begin.
- Protect culture: require back-channel references on collaboration and client service, not just originations.
Retention Matters More Than Recruitment
Many firms tightened hybrid policies last year to strengthen mentorship and training. K&L Gates global managing partner Stacy Ackermann emphasized that people remain the core asset, and increased in-office time helps junior lawyers level up. Duane Morris chair and CEO Matthew Taylor said in-person collaboration strengthens teams and client relationships.
Others are leaning into flexibility as an edge. Norton Rose Fulbright requires fewer in-office days than many peers, which Cody said supports retention without hurting productivity. Husch Blackwell's largest "office" runs fully virtual, widening the talent pool and removing geographic limits.
- Retention rhythms: set a monthly mentorship cadence for 1-4 year associates with clear skills goals.
- Training budget: earmark per-lawyer spend and track participation as a leading indicator of flight risk.
- Manager capability: train partners on feedback, one-on-ones, and expectation setting (most attrition is avoidable).
- Measure outcomes, not presence: pair in-office days with defined learning objectives and client exposure.
AI Moves From Pilot to Daily Work
Generative AI shifted from experiments to everyday use across document review, drafting, and client delivery. George Casey, chair of the Americas at Linklaters LLP, said firms must consider "how to use AI, but how it changes how we work." Jaime Drozd noted AI is letting younger attorneys take on substantive work earlier.
AI is also reshaping hiring. Husch Blackwell chief executive Jamie Lawless said many leaders expect to hire fewer associates over time, favoring lawyers with both legal depth and technical fluency: "It's not just about how many lawyers we hire. It's about the prototype of the lawyer going forward."
- Appoint an AI lead (or committee) to own policy, vendor selection, and matter-level guardrails.
- Create a client-data policy: privacy, privilege, model usage, and approvals for external tools.
- Prioritize 3 workflows for near-term gains (e.g., first-draft memo/drafting, doc review, RFP responses/BD).
- Track impact: time saved per task, accuracy checkpoints, realization on AI-influenced matters.
- Upskill fast: give associates structured training in prompts, verification loops, and citation hygiene.
For ethics and competence, review ABA Model Rule 1.1 (Comment 8) and consider adopting elements of the NIST AI Risk Management Framework for governance and risk controls.
If your teams need a structured path to build practical AI skills by role, see Complete AI Training: Courses by Job.
Workplace Policies: Flexibility With Intent
Firms are recalibrating hybrid work to balance learning with autonomy. Ackermann highlighted that increased office time supports training and professional development. Taylor underscored how face time strengthens client ties.
- Publish a simple hybrid policy: days in-office, learning objectives per level, and exceptions process.
- Engineer collisions: schedule team days, client roundtables, and live matter reviews for juniors.
- Support virtual-first teams with explicit communication norms and shared templates/playbooks.
The 12-Month Outlook
Expect continued merger activity, selective lateral bets, and more defined AI operating models. Regulatory and political crosswinds remain, including executive actions aimed at the sector. As Jamie Lawless put it, challenges will always be there-the opportunity is in how leaders approach them.
- Lateral pipeline health: quality of candidates aligned to strategy, not just volume.
- Realization on AI-influenced matters: are time savings converting into margin and client value?
- Associate retention (years 1-4): watch intent-to-stay scores and mentorship participation.
- Office utilization: tie presence to learning outcomes, not optics.
- Client feedback: ask explicitly about efficiency, predictability, and collaboration.
Bottom Line
Grow with discipline. Keep your best people by giving them a reason to stay. Put AI to work with clear guardrails and measurable results. Do those three things, and you'll enter next year stronger than you started.
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