Thomson Reuters Institute has issued a report on how General Counsels are shaping the Japanese legal market. The report, “General Counsel Trends Driving Japan’s Legal Market in 2025”, shares what is trending for in-house legal teams.
A global Market Insights study captured 84 interviews with Japan-based General Counsels and related decision makers last year. These targeted interviews have formed the basis of the trends outlined in the report.
Download your copy of the report unpacking the following trends and more.
1. Growing internationalisation
Domestically, Japan’s legal industry is undergoing a period of expansion. A significant proportion of the largest Japan-based organisations have legal needs internationally.
The special report shows the expectations of General Counsels requiring legal services by country over the next 12 months. Countries such as the U.S and China are at the top of the list.
2. Spend on outside legal services
What do General Counsels plan to spend on outside legal services in 2025? The report offers the ‘net anticipated score’ for Japan, which is considerably higher than other regions. In fact, expenditure on outside counsel has been increasing over the past decade for Japanese legal departments.
However, they are also savvy consumers, with the report noting:
“While law firm rates are known to always increase, GCs have used savvy practices such as employing less expensive law firms, negotiating greater discounts in exchange for awarding larger matters, and more controlled billing practices to halt or even pull back on legal matter spending while still satisfying their company’s legal demands.”
3. AI to support legal staff shortages
Japan’s shrinking population is having an impact on the legal talent available in the local profession. Interviews with in-house counsel in the study backed this up, with many commenting on capacity issues.
Despite these challenges, Japan’s legal market is increasingly focusing on digital transformation to create capacity. And as the report notes, the profession is uniquely suited to benefit from the capacity-enhancing capabilities of AI.
Are you providing legal services to clients in Japan this year? Access your copy of the first “General Counsel Trends Driving Japan’s Legal Market in 2025”, today.
