Embracing Change in Legal Recruiting: Key Takeaways from NALSC 2025

Earlier this month, our LHH Legal Recruiting team joined top legal search professionals at the National Association of Legal Search Consultants (NALSC) Annual Conference.

In Part One of our recap, we covered tactical hiring strategies—from navigating partner transitions to keeping the recruitment process moving efficiently.

Now, in Part Two, we’re zooming out to look at macro-level industry shifts that are shaping legal hiring in 2025—including the impact of AI, regulatory challenges, lateral hiring trends, and firm expansion strategies.

AI’s Expanding Role in Legal Recruiting

Artificial intelligence is rapidly transforming the legal industry, particularly in areas like eDiscovery, document review, and process automation. But while AI offers efficiency gains, it also presents challenges that firms cannot ignore.

"We learned more about how AI is transforming the legal industry, particularly in e-discovery and process automation, which presents (and will continue to present) new challenges related to privacy, biases, and staffing." – Martina Ellerbe, Senior Executive Recruiter, LHH

During the conference, panelists explored both the opportunities and risks of AI in legal hiring. For legal recruiting managers and talent acquisition teams, AI-driven tools can streamline talent acquisition—automating resume screening, internal database searches, and candidate assessments.

However, firms must stay vigilant about potential AI bias, ethical concerns, and data security risks.

While AI can enhance efficiency, over-reliance on automation could overlook qualified candidates or introduce unintended discrimination in hiring.

Litigation and Regulatory Trends Shaping the Market

The legal landscape is evolving rapidly, and firms need the right talent in place to navigate new regulatory challenges. According to the 2025 Annual Litigation Trends Survey, nearly half of corporate counsel expect a rise in investigations and disputes over the next year.

"Corporate counsel foresee a challenging year ahead, with rising disputes and increased regulatory scrutiny."

For legal teams, this means increased demand for roles like:

• Regulatory and compliance attorneys
• Litigators with experience in regulatory enforcement
• In-house counsel who can anticipate shifting compliance requirements

By proactively assessing talent gaps and hiring in key practice areas, firms can help mitigate risks and ensure they can support client needs.

Managing Lateral Moves with Strategy

Lateral hiring—at all levels—is becoming increasingly complex. In part one, we discussed the emotional intelligence required for partner transitions, but associates and counsel face challenges, too.

Candidates considering a lateral move must navigate things like:

• Contractual obligations and restrictive covenants (such as non-competes, conflicts, etc.)
• Reputational risks
• Firm culture fit
• Long-term career growth opportunities

"Navigating lateral moves isn’t just about finding the right fit—it’s about guiding candidates through a process that protects both their career and their professional relationships."

For legal teams, a structured lateral integration strategy is key to success. Transparency, clear communication, and proactive planning ensure smoother transitions and long-term retention.

Smart Growth: Expansion with Purpose

While many firms continue to expand aggressively, growth alone doesn’t guarantee success. One major takeaway from this year’s conference was that clients value specialized expertise over sheer headcount.

"Size alone doesn’t work. Clients want deep sector knowledge and experienced lawyers, not just bigger teams."

To grow strategically, law firms should:

• Prioritize growth in high-demand practice areas
• Invest in sector-specific legal talent
• Align hiring with firm goals

Instead of hiring just to grow, firms that focus on strategic, intentional, and skill-based expansion will be better positioned to meet client demands.

Final Thoughts

From AI’s growing role in legal hiring to new regulatory challenges and evolving lateral hiring trends, NALSC 2025 reinforced the need for adaptability in legal recruiting.

"The conference provided valuable insights into the recruiting process and was a great opportunity for our company to strengthen relationships with key clients."

— Martina Ellerbe, Sr. Executive Legal Recruiter, LHH

Our team walked away with fresh perspectives, meaningful connections, and a renewed passion for legal recruiting.

"I truly love recruiting, and being surrounded in-person by a community that felt the same was exhilarating!"

— Tiffany Ambrose, Esq., Executive Search Consultant, LHH

As the legal hiring landscape continues to shift, having the right recruiting partner will be more important than ever, and our team at LHH is here to help.

To stay ahead in today’s evolving legal market, firms must refine their hiring strategies and be prepared for industry shifts. If you missed part one of our NALSC 2025 recap, check it out here.