Companies recording more than US$1 billion in revenue hint at big litigation budgets
An increasing percentage of the respondents to Norton Rose Fulbright’s 2025 Annual Litigation Trends Survey consider themselves ready to tackle an increase in volume of litigation this year.
Forty-three percent reported that they were “very prepared” – a jump of 14 percentage points compared to last year’s 29 percent. Norton Rose Fulbright noted that this marked a return to levels reported in 2023.
Of this group, 49 percent is composed of companies logging more than US$1 billion in revenue, hinting at an increase in these organizations’ litigation budgets.
Respondents cited the following preparation factors:
Organizations that reported being less prepared for litigation said restricted legal budgets were their primary obstacle. For 45 percent of respondents, their legal departments are minimizing legal spend year-over-year. The report noted that many corporate counsel felt the expectation to “do more with less”; thus, counsel have sought to identify solutions outside the usual alternative fee arrangements and the constant insourcing and outsourcing of legal work.
Using AI-powered legal technology is a priority for 34 percent of organizations this year. At present, 35 percent are using AI or predictive analytics to address litigation, with 78 percent expecting to use AI in this capacity more over the year. Meanwhile, 31 percent are using these tools to identify risk.
Fifty-nine percent report that their organizations permit employees to use free or publicly available generative AI tools such as ChatGPT; a similar percentage uses customized generative AI tools. Nonetheless, 56 percent of those who use free AI tools said managing the litigation and legal risks was challenging.
While 49 percent of respondents want to utilize generative AI, they reported not knowing where to start and how to manage potential litigation.
The full 2025 Annual Litigation Trends Survey report can be accessed here.
