Key Trends Shaping Law Firms in 2026

Law firms like to ask 'what are the key challenges you see for our firm in the coming year?'. That's the type of question desgined to throw you in a panic and see how you think on the spot.

But what if you knew what key trends top law firm leaders will be dealing with in 2026? Well, that's what we've got for you today.

From AI, to size, and revenue. We've broken down the top trends that will shape law firm operations in 2026 so you can use them to impress in applications and interviews.

1. Consolidation is Strategic, Not Optional

Law firm mergers are no longer rare or reactive. Since 2023, the market has seen a steady drumbeat of major combinations, culminating in transatlantic mergers that create truly global platforms (most recently Winston Taylor). These moves are driven by client demand for joined-up advice across jurisdictions, especially in areas like private capital, disputes, antitrust and regulatory work.

But consolidation is not limited to elite firms. Rising employment costs, higher taxation on partner profits and the growing cost of technology investment are putting pressure on firms across the market. With fewer firms operating in the UK than five years ago, 2026 is likely to bring more mid-market tie-ups, private equity involvement and quiet exits.

How to use this in an application or interview: