What can we expect from the Legaltech market in 2025? Clearly, this is a question rather than a definitive statement. After all, it is almost impossible to make categorical predictions when it comes to the triad of the future, technology, and the law.
Nevertheless, this exercise is a recurring one at the start of each year and a favourite topic for futurists when sharing their forecasts.
An example is the American futurist and de facto guru Amy Webb. According to her top 10 predictions, 2025 will mark the beginning of a “technological supercycle”, described as “explosive”, driven by the convergence of multiple emerging technologies.
Webb predicts that this “perfect storm of innovation” will not only accelerate progress but also (further) transform how we live, work, and connect. The abundance of technological advancements will rival the impact of electricity or the internet’s emergence. This will, in turn, generate a new wave of economic and social disruption and give rise to entirely new industries.
No que toca ao Direito, o que poderá causar maior impacto será o advento dos denominados PLAMs, CLAMs e GLAMs. Depois dos LLMs, os LAMs (Large Action Models), que não se limitarão apenas a determinar o que deve ser dito (como faz hoje o ChatGPT, por exemplo), mas o que deve ser feito.
In the legal field, one of the most significant developments will likely be the advent of PLAMs, CLAMs, and GLAMs. Building on LLMs (Large Language Models), LAMs (Large Action Models) will go beyond determining what should be said (as tools like ChatGPT do today) to determining what actions should be taken.
Optimised for real-time decision-making, LAMs will leverage behavioural and environmental data—such as those generated from driving, meetings, hearings, or contract drafting. Three variations are expected to emerge: PLAMs (for individual actions), CLAMs (for companies) and GLAMs (for governments).
For lawyers, the use of PLAMs is anticipated as a trend for developing legal arguments and strategies. For instance, in a corporate dispute where a minority shareholder seeks to exercise withdrawal rights, AI based on this model could assist in creating a robust argument. The AI could synthesise relevant legislation, legal literature, the lawyer’s own database, and judicial precedents to propose the most effective strategy.
Another intriguing trend this year is what has been termed “strange tech alliances as the new normal”. Unexpected technological partnerships are set to become a standard practice.
One example cited by Webb is Apple’s announcement at AWS re:Invent that it would use Amazon’s Trainium 2 chips—an unexpected move that signals strategic trust in AWS, despite competition with Microsoft Azure and OpenAI. Meanwhile, Amazon and Anthropic are collaborating on Rainier, a massive AI cluster.
The future of AI will increasingly depend on cloud and computing infrastructure, with more collaborations and deals anticipated between Azure, AWS, and Google Cloud. This creates fertile ground for mergers and acquisitions, joint ventures, conflict-of-interest situations, oligopoly formation, and heightened regulatory scrutiny. Lawyers specialising in competition law, regulatory matters, and corporate law are poised to benefit from these developments.
In the ESG (Environmental, Social, and Governance) sphere, two contrasting and significant challenges stand out:
- Climate Events Driving Innovation:
The adoption of low-carbon materials and accessible solar desalination technology will reduce energy costs and further drive the market for clean energy, including electric vehicles. - The Return of Nuclear Energy:
To meet the rising energy demands of AI, nuclear power—through Small Modular Reactors (SMRs)—is set to make a comeback. Companies such as Microsoft, Google, and Amazon are investing in SMRs to decarbonise data centres and ensure scalable energy solutions. Large-scale deployment of these reactors has already been announced.
These developments present both opportunities and challenges for lawyers specialising in energy, infrastructure, and environmental law.
For legal professionals, FGX—a Brazilian consultancy specialising in strategic law firm management—highlights three additional trends for 2025:
- Vertical AI Models:
Unlike traditional, “horizontal” AI models (e.g., OpenAI and Google) designed for broad audiences, vertical AI will dominate the legal market. These tailored solutions will address specific tasks, such as generating reports or visualising tax contingencies with precision. This will provide clients—particularly those seeking greater accountability to investors—with simpler, more functional, and cost-effective solutions. - The Rise of Business Development:
Business development will move from being a secondary activity within a traditional structure to becoming a central, board-level function that drives strategy and growth. - “The Competing Client”:
With widespread adoption of AI tools and increasing sophistication, many companies will internalise more of their legal demands, effectively competing with law firms. FGX predicts that strategic partnerships between firms and in-house legal teams will be the solution. To address this shift, initiatives like the “In-House 4.0” course, to be launched by the Knowledge Institute, will provide much-needed support.
While futurists face the daunting task of forecasting the future, their insights—at least in the trends highlighted here—seem to hit the mark. Many of these trends were already in the pipeline in 2024 and are expected to gain prominence in 2025.
The ready-made joke is the suspicion that these predictions were created using generative AI. Regardless, one thing is clear: lawyers must be prepared to adapt to these shifts by embracing new technologies, skills, and opportunities to thrive in an increasingly dynamic legal landscape.
