Introduction: The Silent Ascent of Biglaw
While the legal industry has been abuzz with everything from AI adoption to budget cuts, Biglaw firms have been steadily — and quietly — consolidating their dominance over the legal market. The 2025 CounselLink Trends Report just dropped, and it confirms what many already suspected: large law firms are thriving, growing, and capturing a near-majority share of the entire legal spend in the U.S.
In an era where corporate legal departments publicly champion budget discipline, the numbers tell a different story. If you’re wondering how nearly half of the Am Law 100 now qualify as “super rich,” the answer lies in one statistic: firms with 750+ attorneys now account for 49.3% of total legal spend — a staggering portion of what was a $67 billion market in 2024.
Let’s unpack how Biglaw continues to dominate — and why small and midsize firms may still find opportunity in this increasingly stratified legal economy.
The Billion-Dollar Club: How Biglaw Firms Command Legal Budgets
Despite the steady drumbeat of “spend control” from corporate legal departments, partner billing rates rose 5.1% on average in 2024, marking the second-highest increase ever recorded.
But this overall increase doesn’t capture the full picture. At the very top:
- Median Biglaw partner rates are 61% higher than those in the next firm tier
- Top partners now regularly bill over $2,300/hour
- Senior associates in elite firms can hit $1,900/hour
These firms are not just surviving — they are thriving, even as clients protest the pricing. The truth is, when critical litigation or regulatory exposure is on the line, general counsel turn to name-brand firms — regardless of cost.
As the old adage goes: “No one gets fired for hiring Cravath.”
The “Timekeeper Mix” Myth: Clients Talk, Biglaw Bills
Corporate clients have long floated cost-cutting tactics such as:
- Diversifying timekeeper roles (i.e., using associates or paralegals more)
- Capping rates for specific roles
- Implementing alternative fee arrangements
But despite these efforts, Biglaw firms continue to bill top dollar — and get paid. When boards demand results, prestige trumps price.
This dynamic creates a feedback loop:
- High-profile matters go to Biglaw
- Firms raise rates and invest in infrastructure
- Clients return for the reliability and reputation
- Legal departments see budgets squeezed again next year
It’s the Circle of (Billing) Life.
Small Firm Resilience: Cost-Effective, Specialized, and Still Thriving
Though overshadowed by Biglaw’s meteoric rise, small law firms command nearly a quarter of all legal spend. While they’ve seen a slight dip since 2022, they still outperform midsized competitors in value and efficiency.
Why Small Firms Succeed:
- Cost-effective hourly rates
- Deep specialization in niche practice areas
- Agile client service models
- Faster adoption of legal tech (out of necessity)
These firms are often retained for work where quality and responsiveness matter more than global brand recognition — and their ability to leverage affordable tech may soon close competitive gaps even further.
Midsize Firms: The Legal Market’s Missing Middle?
Firms with 201–750 attorneys are the industry’s most volatile segment. Sandwiched between boutique precision and Biglaw prestige, midsized firms face:
- High pricing pressure
- Slow tech adoption (compared to smaller peers)
- Challenges in differentiating from either side of the dumbbell-shaped market
However, this tier may become more competitive as midsized firms finally embrace legal technology, from contract automation to project management platforms. With efficient workflows and targeted offerings, they could reclaim market share — if they move fast.
Enter the Woolly Mammoth: AI and the Future of Legal Spend
The report doesn’t directly address it, but generative AI looms large over the legal industry’s future. While not yet a game-changer in client retention or decision-making, it’s already altering legal workflows.
Potential AI Impacts:
- Reduced billable hours for predictable work
- Increased use of flat-fee and milestone-based billing
- More legal work handled in-house with AI assistance
- Pressure on firms to justify high hourly rates for human timekeepers
The big question: Will AI lead to the $10,000/hour lawyer or the death of the hourly model altogether?
Forward-thinking firms have an opportunity to build new billing frameworks that blend automation and human expertise — while still safeguarding the prestige-driven, high-margin work they thrive on.
Conclusion: Biglaw’s Dominance Is Real — But the Game Isn’t Over
The 2025 CounselLink report offers a sobering but fascinating look at the state of the legal market. While Biglaw dominates, small firms remain resilient, and midsized firms could soon rise if they act decisively.
Clients may talk about budgeting, AI, and cost control — but when bet-the-company matters hit, brand name still wins.
Meanwhile, firms across the spectrum must confront the emerging realities of tech, pricing pressure, and shifting client expectations. The firms that thrive won’t just be big or small — they’ll be the ones who evolve.
