Best Lawyers’ 2025 Mid-Year Survey reveals widespread AI adoption, tariff-related disputes, and rising cost pressures across Canada’s legal profession.
Best Lawyers has released its 2025 Mid-Year Canadian Legal Market Survey, highlighting how lawyers are adapting to technological change and economic pressures. The findings were published alongside the 20th edition of The Best Lawyers in Canada and the fifth edition of Best Lawyers: Ones to Watch in Canada.
“Our survey reveals how those in the legal profession are navigating technological changes, as well as geopolitical impacts brought on by market volatility,” said Phillip Greer, CEO of Best Lawyers.
The survey received 204 responses from large B2B law firms with more than 100 lawyers recognized in this year’s Best Lawyers guide. Respondents shared candid views on AI adoption, market uncertainty, and shifting client demands.
AI adoption accelerates
The survey revealed broad movement toward AI integration in legal work:
- 89% of respondents said their firms are either piloting AI for research and document review or have already fully integrated AI tools.
- Only 8% said their firms remain in exploratory stages, and none reported avoiding AI altogether.
- When asked about AI risks, 74% said they were slightly or moderately concerned but trusted existing safeguards, while 14% expressed high concern.
- 42% cited AI integration and regulation as the most significant issue facing the Canadian profession, and 47% said widespread AI adoption will have the greatest impact through the remainder of 2025.
Economic pressures and disputes
Respondents also pointed to tariffs and market uncertainty as key stressors:
- 45% reported delays or declines in business transactions this year, citing tariffs as a primary cause.
- 42% noted a rise in disputes tied to contractual obligations, costs, supply chain disruptions, or tariff classifications.
- Among respondents working in international trade, 81% reported an increased workload, with half calling it significant.
Cost pressures continue to influence client–lawyer dynamics. Nearly 24% said clients have reduced legal spend, 37% reported greater fee-reduction pressure, and 9% said previously outsourced work is shifting in-house.
Looking forward, respondents were divided on which practice areas will see the greatest demand through the end of 2025. Litigation and dispute resolution led with 27%, followed by privacy, cybersecurity, and data governance (22.6%), and regulatory and compliance, including ESG (15%).
The survey underscores a legal market balancing rapid technological adoption with the realities of geopolitical and economic headwinds—reshaping both how lawyers work and the demands placed upon them.