Loading Results

Law Firm Survey

Law Firm Survey 2026

Raising the bar for growth

The legal sector is at a pivotal inflection point. According to our 35th Law Firm Survey, AI adoption, changing client expectations, evolving global dynamics and new market models are challenging the assumptions on which the legal sector has been built. Now, leaders have an opportunity to do things differently with deliberate, decisive action.

Law Firm Survey key findings:

  • Growth remains the overriding strategic ambition: Firms are increasingly looking to gain market share through sector specialisation with a focus on developing distinctive capabilities. But, performance is falling short of aspirations.
  • AI adoption accelerates, but few are seeing monetised returns: While most firms report gains in productivity, quality and responsiveness, few are yet to translate these improvements into commercial returns.
  • Business model transformation is a pressing challenge: Law firms need to pay greater attention to pricing models, incentive structures and workforce strategy, redesigning how legal services are delivered.
  • Operational resilience is becoming inseparable from transformation: A growing dependence on AI-enabled processes, cloud infrastructure and third-party applications is heightening the need for cyber security and technological resilience.
  • A more strategic approach to workforce transformation is needed: A more holistic strategy that goes beyond workforce planning is crucial for redesigning how work is performed and staffed to give firms a competitive advantage.

“Resilience remains one of the UK legal market's defining strengths. But resilience alone will not be enough for what comes next. Firms will need to adapt more quickly and disrupt themselves before others do it for them.”

Mark Anderson
Global Legal and Professional Services Sector Leader

“We are now in a new wave of transformation. The firms that will define the next era are those prepared to make deliberate, often difficult, choices with leaders who are willing to do things differently.”

Lucy Robson
Survey Lead, Legal and Professional Services Tax Leader

From intent to execution

The gulf between law firms continues to widen, with the largest firms capitalising on their scale, international reach and operational advantage. Although many firms struggled to meet growth targets this year, the market remains competitive with law firms still ambitious about their performance next year.

To get ahead, firms need to differentiate themselves. Tackling difficult decisions will be key, including where to compete, balancing technology and talent challenges, and how to redesign business and operating models as markets change.

When it comes to strategy, people, operations and financing, focusing on execution will be critical. As the sector evolves with advancing technologies, changing client expectations and competitive market dynamics, leaders who take bold steps and act with conviction will be the most successful moving forward.

Download the Law Firm Survey 2026

  • 95%

    of Top 100 law firms achieved UK fee income growth in 2026

  • 67%

    of Top 100 firms are targeting growth in selected sectors

  • 84%

    of Top 100 firms are concerned about the speed of technological change

Client interviews coming soon

Register for our Law Firm Survey webinar

FAQs

AI adoption has accelerated sharply, with 66% of Top 100 firms now using it, up from 43%. Yet deployment outpaces value realised: only 8% have achieved meaningful commercial returns, despite productivity and quality gains. Governance is well established, but training, data quality and pricing models lag. The real challenge is business model transformation, not simply layering technology onto existing ways of working.

Growth remains the top strategic priority for law firms. The Top 10 firms have grown their share of Top 100 fee income from 45% to 51% in two years. Sector specialisation is favoured over geography, with 67% targeting selected sectors versus 22% expanding geographically. Appetite for transformational mergers is cooling, with firms preferring lateral hiring and selective acquisitions instead.

This year’s survey has shown that large law firms are pulling ahead, using the advantage of their scale, reach and investment capability to drive growth, while smaller firms are taking a more focused approach, often specialising in sectors or practice areas. Mid-tier firms have opportunities to boost growth, using their relative structural agility to deploy AI and explore adopting alternative fee models to challenge their larger competitors on value.  

It's clear that geographic breadth is no longer a proxy for success. While Top 10 firms are managing resilient portfolios, the Top 11–25 are seeing slower international growth due to weak performance in markets like Australia and Asia.

Leadership teams need to rigorously audit overseas offices for bi-directional referral flows and be willing to exit uncompetitive markets to redeploy capital into tech and faster-growing regions.

Follow us

Contact us

Mark Anderson

Mark Anderson

UK and Global Business Services leader, PwC United Kingdom

Tel: +44 (0)7770 921256

Email
Lucy Robson

Lucy Robson

UK firm Tax Leader, Law Firm Advisory Group, PwC United Kingdom

Tel: +44 (0)7732 804798

Email
Leon Hutchinson

Leon Hutchinson

Director, Assurance, PwC United Kingdom

Tel: +44 (0)7739 449052

Email

Contact us

Hide