A new report has revealed that law firms may be “underestimating the personal toll” that work takes, even as those employers move to provide a balanced, supportive workplace.
The 2025 Changing Legal Landscape Report, conducted by the Australasian Legal Practice Management Association (ALPMA) and Dye & Durham between 22 July and 6 August 2025, saw 181 law firm leaders in Australia and New Zealand provide insights into how firms handle pressures in strategy, people, technology, AI, and wellbeing.
Lawyers craving more balance
According to its findings, more firms are offering employee assistance programs, appointing mental health first aid officers, and running workshops.
However, it found that employees were seeking changes to the structure of their work: “mental health days, cultural change, and easing billable targets are seen as having a far more significant impact than traditional programs.”
“The story here is clear: wellbeing cannot be reduced to add-ons; it must be embedded in how firms operate,” the report said.
Dye & Durham’s managing director of the APAC region, Carl Olson, said: “The commentary in our report posits that firms might be underestimating the personal toll of work demands despite assuming that organisational culture supports balance.”
The report noted: “There was no uniformity in responses in how to improve work/life balance, but the ability to reduce to a four-day week stood out.”
In September of last year, D&D and ALPMA research showed widespread enthusiasm for a four-day work week.
It also found evidence of widespread hybrid work adoption (64 per cent); however, this was limited to mostly partners and senior lawyers. Support and administrative staff were more likely required to work in the office full-time, it found.
The rate of flexible work arrangements was, however, expected to fall to 49 per cent in future strategy plans, it said.
Further, it revealed that “73 per cent of firms plan to grow solicitor headcount in FY26, highlighting strong demand for legal talent”.
However, firms were found to potentially struggle to fill these roles as only around one in three (~30–34 per cent) reported prioritisation of talent attraction, retention and development strategies.
Only 28–38 per cent of respondents reported that legal professionals enjoy a healthy work/life balance.
This figure sits in stark contrast with the 82–97 per cent of respondents who said their own firms’ employees have a healthy work/life balance.
The report said: “This discrepancy may reflect a cognitive bias or social desirability effect where respondents externalise the problem to ‘others’ in the broader legal industry while maintaining a more positive view of their own workplace.”
The report also suggested that “employees may feel pressure to present an optimistic view of firm culture in surveys or to managers but privately experience more stress or imbalance”.
Olson said: “The pandemic normalised flexible work, but firms now face the challenge of balancing collaboration and connection with individual wellbeing.”
AI rolling in
AI adoption in the law profession is ahead of that of the general workforce. Its research found that 90 per cent of legal professionals have tried generative AI, and 70 per cent use it regularly – compared to only a 44 per cent uptake in the general population.
“Only 5 per cent of firms currently offer clients advice on AI adoption – but this is expected to triple in the coming year,” the report said.
Olson said: “Over the last couple of years, I have had many conversations with law firms about the longer-term risk and rewards of AI, and we have seen sentiment swing more towards optimism, with 65 per cent of respondents indicating high levels of enthusiasm.”
The research showed that the use of generative AI tools was a strategic priority for 51 per cent of respondents. Additionally, it said technology, AI and innovation-driven delivery will be the next value-adds.
“Firms now consider tech strategy (automation, AI, integrations) as a core competitive pillar rather than an enabler,” Olson said.
This is a step away from old value-adds such as offering access to senior staff, fixed fees, and personalisation of service.
ALPMA chief executive Emma Elliott said: “Firms that are curious, open to change, embrace AI responsibly, invest in culture and talent, and balance flexibility with connection will not only attract the best people but also redefine what it means to deliver legal services.”
