Intentionality, agility, and collaboration: DC-based law firms look to client centricity and AI to differentiate in a volatile market

Sandpiper Partners’ 15^th Annual DC Legal Market Conference brought together law firm leaders and clients to discuss a rapidly changing government and regulatory landscape. The candid panel discussions revealed a growing need for clients and their law firms to collaborate more quickly, broadly and transparently to drive value and deepen relationships.

Here are the key takeaways from the event:

Relationships, innovation, and customization are key to meeting evolving client demands

In a market directly impacted by the frenetic pace of Executive Orders and regulatory changes, DC law firm leaders and their clients discussed what clients expect of their law firms and what law firms are doing to stand out. Clients need their law firms to engage in broader, sometimes non-legal strategies, including PR and crisis management. Firms now must navigate a range of senior stakeholders who, while they might have the same goals, might not necessarily have the same priorities or focus. Clients want their counsel to share what they see working with other clients to navigate these challenges.

Additionally, clients are taking notice of how well their outside counsel collaborates across this larger ecosystem. “We want to know how well our firms are playing in the sandbox with others,” said one client panelist. One law firm leader responded, “It’s a challenge for some of our partners…they are not used to collaborating in this way.”

The changing regulations and government environment are extremely fluid, which put pressure on law firms to make sure they reach their clients as quickly as possible when information changes. Client briefs and thought leadership remain important communication tools, but clients want practical solutions, not just legal interpretations. “We want our DC firms to understand the current administration and how they are making decisions and how that applies to our specific needs,” said one client panelist. “We want our law firms to help solve problems. Not just tell us what the law says.”

The panel also noted a disconnect between the information the firms send to their clients and how the clients absorb that information. Some clients want detailed explanations while others prefer bullet points or a quick summary. The firm leaders and clients agreed: Efficiency and customization are key. Or, as one client on the panel put it, “Time is tight… what’s going to get me the information I need in the shortest amount of time?”

From client pressure to market expectations AI remains a strategic priority

The law firm clients shared that they are being pressured by their Boards to demonstrate how they are using Artificial Intelligence (AI) to make their internal legal teams more efficient and to quantify savings. They cited first drafts and document summaries as “low-hanging fruit” for AI and expressed their aim to bringing those activities in-house and leaving the “last look” and “value-add” perspective to outside counsel.

Even with some practical use cases, firms are still struggling to find the right tools and answers. As one law firm leader said, “Similar to what’s happening in the administration, AI is changing so quickly, it’s a challenge to truly understand not only where the technology should be used, but also how to adapt our firms’ overall culture to accommodate its impact.”

The panelists agreed that the priority focus for their firms should be the AI that will help better serve clients. Joel Wirchin, Williams Lea’s Senior Director of Legal Strategy pointed out, “Corporate clients have gone from telling firms ‘don’t use AI in my work’ to ‘don’t use AI without telling us’ to ‘tell us how much efficiency gains your AI use is delivering – and reflect that in my rates’ in a very short time frame.” Transparent communications and two-way collaboration are essential. “Firms must communicate openly about AI use and collaborate with clients to mitigate risks,” he added.

Balancing the scales: AI’s unresolved challenges

The panelists discussed the notion that AI is commoditizing knowledge but postulated that experience and wisdom remain important to law firms and their clients. One challenge for firms is how to evolve their business models to adapt to a new AI reality.  “AI is going to drive a dramatic overhaul of our firm’s business model,” said one law firm leader. “The question is how and what does this mean for the billable hour? No one has solved for this yet.” Law firm leaders must adopt AI quickly and show receipts. The law firms that figure out how to price AI will lead the race.

Intentionality is important in AI adoption as well. It’s not just about what can AI do, it’s about what should AI do.  One panelist likened the use of AI at their firm to home improvement: “It’s like we went into Home Depot and gave everyone a chainsaw. Now everyone is running around carving things up. We need direction and purpose to use tools effectively, and AI is no different.”

Proving the “ROI of AI” also remains elusive. Besides its lawyers, a firm’s most valuable asset is their data. Getting that data into a good place must be a priority to effectively use AI. Additionally, firms need their lawyers to adopt AI tools. The panelists agreed that firm leaders need to drive AI enablement from the top down. As one panelist summarized, “Our firm has an AI continuum that starts with learning about how AI can be used, then we identify and prioritize specific use cases…then we standardize and structure the data supporting those use cases… then, and only then, we can measure the ROI.” Firms need to set realistic expectations about what the AI can do, ensure their data is standardized and structured. Until then, it will remain difficult to prove ROI for AI technology investment. However, as another law firm leader said, “For law firms, the ROI might not be there today, but if you don’t invest in it, you are going to be behind the curve.”

Joel Wirchin of Williams Lea summarized the current environment: “Client pressure to adopt AI is building and firms are looking for success stories to help overcome partner resistance to change.” He added, “On the support side of law firm operations, there are proven AI technologies that enable both workflow efficiency and productivity.” In the end, Joel said, “leveraging the best of AI will require firms to establish clear plans for change management–from implementation, to adoption to optimization.” As one co-panelist aptly put it: “Resistance is futile.”

The DC legal market is experiencing rapid change, with clients demanding more practical, collaborative, and tech-enabled services. Law firms must differentiate through relationships, thought leadership, and effective use of AI and data. Market shifts and lateral hiring trends are reshaping practices, while business models are evolving to meet new, AI-driven expectations. To learn more about how law firm leaders are strengthening their operational infrastructures to meet the demands of the evolving legal landscape. Download our 2025 Trends and Opportunities in Business Services report, The technology revolution in legal support: Redefining roles and enhancing value in modern law operations.