Financial Times Innovative Lawyers Roundtable APAC 2025

The legal services industry is currently navigating two significant global trends: the increasingly complex geopolitical climate and the transformative capabilities of Generative AI. As we move through 2025, law firms are increasingly investing in and adopting new technologies, marking a substantial shift in their approach. However, the industry is still in an exponential growth phase, indicating that there is much more to come in terms of technological integration.

These and other themes were discussed with nuance and insight at the recent Financial Times Innovative Lawyers Roundtable APAC. Read on for more. 

Challenges faced by law firms

One of the main challenges identified during the roundtable was the need for effective training and development of younger lawyers. This is crucial not only for the sustainability of law firms but also for ensuring equity and prosperity within the profession. Current leaders in law firms must avoid letting short-term gains overshadow the long-term impacts of their operational models. This is a notable concern in the Japanese context, where the legal profession faces unique challenges, including an aging population and a declining interest among younger generations in pursuing legal careers. This situation raises concerns about the future of the profession in the country.

Future trends for younger lawyers suggest a shift towards more collaborative work across different practice areas, breaking down traditional silos. Advances in AI are expected to enhance agility and promote the development of essential skills such as communication, evaluative research, and discernment. 

While younger lawyers are the early adopters of this new technology, senior lawyers are often the expert users of AI. Their previous experience and knowledge provide the necessary foundations for astute assessment of outputs and more precise instructions or prompts. 

Law firm leaders are also concerned about recruitment practices, questioning whether they are hiring the right talent for the appropriate practice areas or whether they should be focusing on new practice areas and redeploying and training their staff in other areas.
However, it remains essential for younger lawyers to grasp the fundamentals of good lawyering, including research, drafting, and problem-solving, while also understanding the limitations of AI.

Measuring ROI in AI

Another critical discussion point is the need for law firms to measure the return on investment (ROI) in AI technologies. Firms must find a balance between sustainable innovation and the commercial viability of their investments. 

While adoption of AI technologies is a crucial metric for measuring ROI, engagement is equally important. Engagement with AI services also needs to be considered in the wider context of a profession that has a zero tolerance for error, so users must feel confident in engaging with AI tools that they can trust and are able to verify the outputs. 
AI is already transforming legal practices and service delivery, with a focus on low-value tasks that can be efficiently managed by AI, and reducing the administrative burden experienced by legal professionals.

For example, AI's advancements, particularly in translation capabilities, have already begun to reduce the need for human translation resources, demonstrating the efficiency and cost-effectiveness of AI solutions.

Future outlook

Looking ahead, several trends are expected to shape the legal services landscape:

• Bridging the skills gap with the incoming and younger generation of lawyers to avoid a cohort of lawyers devoid of essential skills of practice.
• Clearer understanding of IP, privacy, and copyright implications of AI.
• Development of internal AI agents within firms.
• Widespread implementation of generic AI tools.
• Legal professionals adopting a flexible mindset towards AI.
• Bridging gaps in client sophistication regarding AI.
• A nuanced understanding of AI's impact within firms.
• Universities playing a role in modernising legal education.

The future of the industry 

The legal services industry is at a pivotal moment, with AI and technology reshaping how legal work is conducted. Firms must adapt to these changes while ensuring that they retain the core competencies of good lawyering. The focus on training, recruitment, and the effective use of AI will be crucial for the future success of law firms.