How Spring 2025 Redefined Legal

The legal industry is evolving faster than we have never seen before. In the last 30 days alone, we have seen number of key developments that only highlight the disruption, transformation and augmentation of an entire industry.

1. Allen & Overy Partners with Harvey AI to Develop Legal AI Agents

Date: April 22, 2025 Read more

A&O Shearman announced a partnership with legal AI company Harvey to co-develop AI agents capable of automating complex legal workflows—such as antitrust filings and fund structuring. These tools will be used both internally and offered to clients, showcasing how AI can be productised by law firms.

Why It Matters: A&O have shown that a law firm can move beyond using AI as an internal tool to turning it into a client-facing product. For traditional firms, this raises the bar - clients will increasingly expect AI-powered efficiency, transparency, and speed.

2. Unity Advisory Launches to Challenge the Big Four

Date: April 24, 2025 Read more

Former EY UK chairman Steve Varley and ex-PwC UK leader Marissa Thomas launched Unity Advisory, a UK-based boutique consulting firm backed by $300M from Warburg Pincus. The model focuses on low admin costs, high agility, and a proposition described as “ai-led and super client-centric.”

Why It Matters: Large-scale clients could be open to alternatives that deliver faster, smarter, and cheaper solutions. AI-led boutiques like Unity could soon encroach on the high-margin consulting-style work many law firms depend on.

3. Venrock Highlights AI’s $20 Trillion Disruption of Professional Services

Date: April 25, 2025 Read more: The $20 Trillion Take Over of Professional Services

In a provocative essay, Venrock partner Ethan Batraski describes AI as the engine of a $20 trillion takeover of legacy professional services—including law. He predicts the rise of full-stack AI-native firms built from scratch to replace legacy models.

Why It Matters: Venture capital sees the professional services sector, including legal, as ripe for disruption. AI-native competitors will increasingly be backed with serious capital to replace, not just support, traditional firms.

4. SRA Approves First AI-Driven Law Firm: Garfield.Law

Date: May 6, 2025 Read more: SRA Approves AI Law Firm

Garfield.Law became the first SRA-authorised AI-driven law firm, focused initially on debt recovery. Their AI handles legal process automation, backed by regulatory approval to operate as a law firm.

Why It Matters: This is the clearest signal yet that regulators are not only tolerating AI in law—they're endorsing it. For firms still on the fence about AI adoption, the compliance argument is starting to fade. If AI-driven law firms can win authorisation and deliver services at scale, it creates a new category of competitor.

5. Y Combinator Encourages AI-Native Law Firm Startups

Date: May 16, 2025 Read more: Y Combinator & AI Native Law Firm Startups

Y Combinator issued a call for “full-stack” AI companies, encouraging founders to build AI-native law firms from scratch. Their position is rather than sell tools to law firms - replace them.

Why It Matters: This is the same accelerator that launched Stripe, Airbnb, and Dropbox. Their attention to professional services legitimises a future where traditional law firms could be leapfrogged by software-native challengers.

6. Former A&O Leaders Launch Private Equity Advisory: Dejonghe & Morley

Date: May 19, 2025 Read more: Is Private Equity Coming for Big Law?

Wim Dejonghe and David Morley, former Allen & Overy leaders, have launched a new consultancy connecting private equity with law firms. The move aims to advise on law firm investment opportunities and help big law rethink funding and structure.

Why It Matters: PE buying law firms is not that new. But is big law now in their sites? With experienced insiders leading the charge, traditional firms could find themselves facing competitors with better funding, faster decision-making, and more aggressive business models underpinned by technology.

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These developments underscore a broader trend of innovation and disruption within the industry. As AI continues to evolve, its integration into legal services is likely to accelerate, and it will bring both challenges and opportunities for traditional firms and new entrants. It's a truly exciting time to be in this space.

If you see this disruption as an opportunity and you want to be at the forefront - Legal Tech Foundry is here to make your transition to providing the future of legal services a reality.