Insights from the LegalVIEW database suggest rate volatility is most pronounced at extremes of corporate revenue

Wolters Kluwer Legal & Regulatory’s ELM Solutions business today published the most recent installment of its award-winning LegalVIEW Insights report series, which finds the legal market at a crossroads where rate volatility, reputational premiums, and the accelerating impact of AI are poised to reshape the rules of engagement in 2026.

Jennifer McIver, Legal Operations and Industry Insights expert at Wolters Kluwer ELM Solutions: “Expect rate dynamics to remain anything but uniform. Legal teams will need to anticipate tiered and regional shifts, as well as the growing impact of AI if they want to keep costs under control and partnerships strong in 2026.”

Other highlights from LegalVIEW Insights Volume 2025-2 include:

• For services rendered in the first half of 2025, partner rate growth felt some moderation across law firm tiers, with the top 25 firms dropping to a 6.3% mean increase in 2025 from 10.4% in 2024, and mid-tier firms seeing similar declines. This cooling trend could be driven by heightening client scrutiny, signals shifting negotiation dynamics despite continued headline increases.
• Despite slower overall growth, New York City maintains the highest partner and associate rates, with partners averaging $1,972 and associates $1,214. Meanwhile, cities like Cincinnati, Portland, and San Diego posted double-digit increases, underscoring sharp regional contrasts and uneven market dynamics propelled by local demand in addition to competitive pricing.
• Rate volatility appears most pronounced at the extremes of corporate revenue, with increases for the largest companies dropping to 9.9% from 15.6% and the smallest falling to 10.4% from 12.3%. Mid-market bands remained steady, suggesting that negotiation leverage and market forces are weighing more heavily on the largest and smallest clients.
• Larger companies appear to be paying well below the mid-market peak for Am Law 1–25 partner rates, with the strategic and high-volume work that typically defines those relationships likely affording them significant negotiating power. However, their rates paid to Am Law 101–150 and 151–200 firms – which tend toward the niche and specialized – are higher than those of mid-market clients.

The LegalVIEW Insights series leverages the more than $200 billion in legal invoice data housed in Wolters Kluwer’s LegalVIEW database. Expert analysis reveals the trends shaping legal spend across industries such as finance and securities, insurance, manufacturing, life sciences, and real estate.

Wolters Kluwer ELM Solutions, part of the Wolters Kluwer Legal & Regulatory division, provides a comprehensive suite of tools that address the growing needs of corporate legal operations departments to increase operational efficiency and reduce costs. ELM Solutions helps corporate legal and insurance claims departments drive world-class business outcomes with its innovative technology and end-to-end customer experience.

About Wolters Kluwer

Wolters Kluwer (EURONEXT: WKL) is a global leader in information, software solutions and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with technology and services.

Wolters Kluwer reported 2024 annual revenues of €5.9 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 21,600 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

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