GLOBAL LAW FIRM NETWORKS: THE ELITE: An Introduction to Global Market Leaders

Several storylines and developments impacted the global legal profession in 2023. Law firms worldwide look to their international alliances and associations to help them navigate these critical issues and serve their clients in an ever-changing legal, economic and regulatory landscape. 

The Rise of Artificial Intelligence in 2023 

Prior to 2023, Artificial Intelligence (AI) was more commonly discussed in the context of science fiction movies or enterprise-level systems that were out of the reach of the public. Enter platforms such as ChatGPT, Google Bard and others that gave the power of these generative AI tools to the masses. Overnight, we saw technology companies announce their plans to develop and release other AI platforms and tools that will fundamentally change how humans work, create, and solve problems. Technology and solutions providers to the legal profession also made acquisitions or announced their intent to jump into the AI space and offer generative and predictive AI solutions to law firms.

The United States, European Union and other nations or global bodies have taken notice of the opportunities in the AI realm and the numerous threats that AI poses to our global economy and society. Some of these bodies have already implemented policies and regulations, such as the Executive Order from the Biden-Harris administration on “Safe, Secure, and Trustworthy Artificial Intelligence” or the European Union’s AI Act.

Law firms, along with their international alliances and networks, will also need to strongly consider how these solutions can change how they do business, serve their clients, and compete for new business. Lawyers are perfectly positioned to be trusted advisers to their clients as they need to navigate the myriad of new AI laws and forthcoming regulations and protect the interests of their clients.

Uncertainty in the Banking and Financial Sectors
In early 2023, the global economy watched with bated breath as many banks in the United States collapsed, sending ripple effects throughout the international financial sectors as far as Europe and Asia. This instability, coupled with inflation and rising interest rates worldwide, led to retraction and cost-cutting in many sectors as the cost of money became too high and stifled growth plans.

Many industries saw an increased level of insolvencies as compared to years prior. In the United States, it is reported that insolvencies increased by as much as 18% in 2023 as compared to 2022. Many experts expect this trend of elevated insolvencies to continue into 2024, with economic relief coming from announced interest rate cuts by many central banks. Given this uncertainty in the market, law firms will need to be able to shift resources and focus from some practice areas, such as corporate and transactional groups, into insolvency and restructuring areas of their firm to meet anticipated demands.

Sectors to Watch: Energy, Sustainability and Technology

In the first half of 2023, there was nearly USD358 billion in investments in renewable energy sectors, a 22% increase compared to the same period in 2023. This increased investment in long-term, sustainable energy and infrastructure projects is evidence of a continuing shift away from carbon and fossil fuel-based energy. With an increasing focus on renewable energy sources, legal advisers must guide clients through complex regulatory frameworks, aiding in the transition toward sustainable practices. Lawyers must advise their clients on compliance with evolving environmental laws, facilitating renewable energy project financing, and navigating the intricacies of carbon emissions trading. Law firms and their international alliances and networks will continue to play a pivotal role and have a distinct advantage in navigating the dynamic global landscape in the energy and sustainability sectors.

With the proliferation of AI and other emerging technologies, the markets are seeing an increased amount of investment in the specific technology sectors in the development of chips and processing capacity to meet the demand created by these generative and predictive AI technologies. Law firms must assist clients in navigating the new AI and technology environment, including avoiding becoming intertwined in the inevitable litigation between AI companies and copyright holders who claim their works were used to train AI models. Law firms that belong to international alliances and networks will be able to assist their clients confidently in addressing the legal and business challenges posed by harnessing generative AI technologies and/or protecting their clients’ intellectual property.

Geopolitical Conflict and New Global Alliances 

The ongoing war in Ukraine, the Israel–Hamas war and tensions in other regions have created a fast-changing geopolitical landscape that has had an impact on relations between countries around the world. Navigating new sanctions regimes and the political implications of supporting or not supporting various sides of these conflicts has challenged many government and business leaders. As indispensable, trusted advisers to their clients, lawyers do not operate in a vacuum and must be aware of these geopolitical issues. Through the interconnectedness that comes from being part of an international alliance or network, member firms can gain diverse, global perspectives and expertise to broaden their understanding of these critical issues.

In recent years, we have seen the rise of coalitions of countries such as BRICS and the Economic Community of West African States (ECOWAS) that seek to level the global economic playing field by giving more power to blocs of emerging economies, many of which have large swathes of valuable untapped natural resources and booming populations. As clients and supply chains in various sectors develop strategies to keep abreast of the changing geopolitical landscape, international networks and alliances must ensure that they account for these new spheres of influence.

Outlook for 2024 and Beyond 

In 2024, we will see further chapters written for these storylines and new ones developing. The general election in the United States, both the lead-up and the result, will likely be the focus of much discussion this year and impact the global economy and markets for the coming years and the remainder of this decade.

In the coming years, law firms, especially those with access to international alliances and networks, will continue to play a vital role for clients navigating these issues and opportunities in our increasingly interconnected global society. Professionals that align with strong international networks and alliances will have the independence to maintain the unique cultures of their firms while gaining critical global connections to serve their clients’ complex and cross-border needs.