2026 'For the Times They are A-Changin'

The year was 1995, Toy Story was released as the first full-length computer-animated film, Gangsta's Paradise was topping the charts, and the financial industry was preparing for what they thought would be just another typical year. Suddenly, everything changed. Wall Street transitioned from paper-based processes to digital trading systems. Firms that embraced this new technology thrived, while those that did not eventually disappeared. Technology was no longer an experiment; it became the foundation of the industry.

1995 marked a pivotal year for the dynamics of the financial sector. Similarly, 2026 is shaping up to be a transformational year for the legal industry. AI is now the equivalent of the electronic trading system, and cloud-based practice management serves as the new digital trading floor. Innovation is no longer merely an option; it has become a structural necessity.

As we approach 2026, the conversations among the firms I've spoken with are becoming more pronounced. They are questioning whether they are doing the best they can, whether they are doing too much, or whether they are doing too little. I can clarify that they are not alone in these concerns; however, those who can identify the right solutions will thrive.

Seven major trends are shaping the future of how firms operate and deliver value to their clients:

1. The rapid expansion of AI and automation.

2. Increased pricing power alongside a growing demand for transparency.

3. The evolution of litigation support and e-discovery.

4. Heightened regulatory and compliance pressures.

5. Intensifying competition for legal talent.

6. A surge in contract and class-action litigation.

7. An ongoing cultural shift within the profession.   

I have identified several trends based on recent research and industry reports. Bloomberg Law's "Legal Trends 2026" highlights the accelerating shifts in corporate law and regulations, requiring more agile, tech-enabled legal teams. Meanwhile, Thomson Reuters' "2026 Law Firm Rates Report" indicates that firms are successfully raising their rates beyond inflation, but this success is contingent upon better data, reporting, and operational efficiency. Additionally, Robert Half's "2026 Salary Guide" points out that while firms are indeed increasing their rates, this change is accompanied by new expectations: clients now demand more detailed reporting, predictable billing, and a clear demonstration of return on investment (ROI).

When reflecting on the past, you may notice that while circumstances change, history often tends to repeat itself. Whether it's the financial industry in 1995 or the legal industry in 2026, changes are bound to occur that will reshape the future. Will 2026 be that year?

Bob Dylan said it best,

‘Come gather 'round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You'll be drenched to the bone
If your time to you is worth savin'
And you better start swimmin'
Or you'll sink like a stone
For the times they are a-changin'