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Signed into law in mid-2025, the One Big Beautiful Bill Act (OBBBA) is a wide-ranging reform that touches nearly every sector of the economy. It makes many of the 2017 tax-cut provisions permanent, expands deductions for small businesses, and introduces new incentives — from childcare credits to “Trump Accounts” for newborns.

At the same time, it reins in clean-energy incentives, tightens social-program eligibility, and allocates billions toward border enforcement. 

For law firms, that breadth matters. Because when policy shifts at this scale, clients look to their lawyers first—for interpretation, compliance, and strategy.

The financial squeeze: Higher stakes on both sides of the ledger

The OBBBA comes at a time when some firms were already feeling margin pressure (See Legal IT Professionals 2024 Report on the State of the US Legal Market). Corporate clients are watching spending more closely, while rising salaries and tech costs continue to climb.

On the revenue side, firms could see client demand fluctuate by industry. Energy, construction, and manufacturing may surge in legal needs, while other sectors pause major projects until more information is available.

On the expense side, partners might face complex tax implications. The permanence of the 20 percent pass-through deduction benefits most partnership structures, but the new limits on deductions for high-income earners may offset some of those gains.

Meanwhile, law firm leaders are asking familiar questions:

• How much can we pass on rising costs to clients?

• How do we manage short-term volatility while keeping long-term growth steady?

In this moment, financial discipline isn’t just about tightening budgets—it’s about scenario planning and transparency with both teams and clients.

Tax structure rethink: How the OBBBA rewrites firm economics

Law firms—often structured as LLPs or PLLCs—live and die by how tax rules treat pass-through income. With the pass-through deduction now permanent, many firms will double down on existing structures rather than converting to corporate status.

But this is also the first major opportunity in years to re-evaluate compensation models. Partners who previously deferred income might reconsider, especially with new deduction caps and state-and-local tax (SALT) relief that varies by region.

For firm CFOs and managing partners, that means:

• Running financial forecasting and partner-distribution simulations under new tax thresholds.

• Revisiting expense categorization for technology and professional development (many may now qualify for higher depreciation limits).

• Expanding in-house tax expertise—or partnering with external advisors—to turn compliance into a client-facing service.

Firms that master these internal adjustments first will be in the best position to advise clients confidently.

New regulatory demand: When every change creates a case

Every major bill reshapes the demand curve for legal services. The OBBBA is no exception.

Energy and environmental law teams are already seeing increased inquiries from clients navigating scaled-back clean-energy credits, including questions about contract revisions, project timelines, and legacy incentives. 

Labor and employment practices will stay busy, too. The bill introduces new work-requirement language tied to federal benefits and overtime deductions—policies that intersect directly with workplace compliance.

Immigration and border law are front-page news. The OBBBA allocates billions to enforcement and processing infrastructure, increasing demand for immigration counsel, employer compliance audits, and litigation.

Corporate and tax law are set for a boom. Businesses, both large and small, will seek guidance on how to optimize their operations under the new framework.

In short: The OBBBA is creating a wave of advisory demand—not unlike what the legal sector saw after the 2017 tax overhaul. Firms ready to lead the conversation can capture new market share while deepening trust with existing clients. At the same time, several provisions—such as expanded deductions for certain businesses and longer-term tax clarity—may offer advantages that clients will look to their legal teams to fully understand and apply.

People power: Navigating workforce shifts inside the firm

Economic changes can test a firm’s talent strategy. Associates want stability. Clients want efficiency. Partners want profitability.

The OBBBA adds new variables to the mix. Expanded dependent-care and childcare credits may influence benefits design and employee expectations. At the same time, cost-of-living fluctuations are driving discussions about geographic pay differentials and remote-work tax nexus.

Firms are experimenting with learner support models and AI-powered research tools to manage costs without sacrificing quality. But the real differentiator won’t be automation—it’ll be culture.

Per the recent research from the NALP Foundation, lawyers are more likely to stay where they feel invested in the mission. A clear, transparent response to economic change—not just cuts and memos—builds long-term loyalty.

A helpful framing for leaders: How can we use this moment to reinforce our values?

Client conversations: Leading through clarity, not fear

When legislation is this complex, clients crave one thing: simplicity.

That’s where firms can deliver tremendous value—by translating 500-page bills into actionable insights. For example:

• Hosting short, digestible webinars on specific provisions.

• Sending client alerts that skip the legalese and focus on “what this means for your business.”

• Equipping associates with clear talking points that link tax and operational impacts.

Tone matters too. Clients are already anxious about the economy; they don’t need more alarm. Instead, use helpful, human language that focuses on solutions.

“Here’s what’s changing, here’s what you can do, and here’s how we can help.”

Strategy for resilience: Turning policy into advantage

The law firms that thrive through economic uncertainty tend to share a few key habits:

1. Diversify practice areas: Expand beyond corporate and litigation to include counter-cyclical services like bankruptcy, compliance, and government contracting.

2. Invest in financial literacy: Give partners and managers training on the OBBB’s key fiscal changes. Understanding the policy landscape is a strategic advantage.

3. Automate intelligently: Adopt workflow automation for billing, timekeeping, and reporting—freeing teams to focus on advisory work that clients truly value. Use AI thoughtfully and ethically. 

4. Communicate often: Regular internal updates about firm finances, hiring, and strategy keep teams grounded when the market feels unpredictable.

5. Build empathy into leadership: The firms that come out stronger are the ones that pair financial clarity with human connection.

In short: The OBBBA is a test of agility—not just of accounting skill. Firms that learn, adapt, and communicate well will convert uncertainty into growth.

The broader picture: What this says about the profession

Step back, and the bill reflects a larger truth about today’s legal economy: Change is accelerating, but trust still anchors everything.

Clients don’t just hire firms for expertise; they hire for confidence. They want to know that when the rules change, their legal partners are already on it.

This is where technology, process, and people intersect. From smarter billing tools to data-driven insights, firms that modernize now will be ready for the next wave of reform.

Economic cycles will always ebb and flow. Policy will always shift. But the firms that stay human—the ones that communicate clearly, act decisively, and keep client needs at the center—will weather it all.

Closing thought

The One Big Beautiful Bill is more than legislation. It’s a mirror reflecting how prepared—or unprepared—many firms are for a changing economic world.

Yes, it brings complexity. But it also brings clarity: a chance to simplify operations, rethink structure, and strengthen client relationships.

Because at its core, uncertainty isn’t the enemy of growth—it’s the catalyst for it.

Stay ahead of the curve. Explore how the 8am™ platform helps firms simplify operations, manage billing confidently, and keep pace with every policy change.

This article is authored by Anna Rappaport, Esq., founder and principal of Excelleration Coaching. A former practicing attorney with over 25 years of experience, Anna specializes in helping lawyers and legal teams strengthen leadership, communication, and collaboration skills. In this piece, she shares actionable steps for maintaining firm cohesion and morale amid financial or organizational uncertainty.

Allison C. Johs, Esq., is the President of Legal Ease Consulting Inc., where she helps lawyers build productive, profitable, and enjoyable practices. A former litigator and law firm administrator, Allison draws on more than 15 years of legal experience to coach lawyers on marketing, business development, productivity, and practice management. She’s also the co-author of How to Do More in Less Time and Make LinkedIn Work for You.

The U.S. Citizenship and Immigration Services (USCIS) will soon eliminate paper checks and money orders for filing fees, effective October 28, 2025. Read below for a deep dive into this upcoming shift from DocketWise cofounder James Pittman.

If you’re not yet using generative artificial intelligence (AI)in your practice, now’s the time to start. Data from the 8am™ 2025 Legal Industry Report shows that AI has been adopted by nearly a quarter of law firms and is changing the way they operate. From streamlining internal processes to onboarding new clients, AI is helping legal professionals save time, increase efficiency, and improve client service.

Not sure where to start? You’re in luck! This post highlights 10 practical ways lawyers are using AI for law firm management and marketing. You’ll learn how AI can help with drafting policies, designing training exercises, generating website content, and more.

If you’re interested in additional AI use cases for law firms, this post is the third in a series. In earlier posts, I shared:

• 10 practical ways lawyers are using generative AI for trial preparation and drafting (Part 1)

• 10 more AI use cases for lawyers: Research, writing, and law firm management (Part 2)

Taken together, these three blog posts offer practical use cases from my recent ABA TECHSHOW presentation with attorney Greg Siskind, 60 AI Use Cases in 60 Minutes. 

Implement AI into your firm, and efficiency follows

According to data from our 2025 Legal Industry Report, lawyers are expanding how they use AI. They’re not simply drafting short letters or emails; they’re relying on AI to support marketing efforts and firm operations, too. 

According to the report, legal professionals are already using AI in legal marketing to draft blog posts, generate social media content, and support marketing and branding efforts. Rather than experimenting with AI, they’re incorporating it into their daily marketing workflows.

Lawyers are also turning to AI to run the business side of their firms for tasks related to firm management, business planning and development, and the analysis of firm data and matters. The results speak for themselves: 61% of firms reported improved efficiency after adopting AI, with the majority of legal professionals saving five or more hours per week on routine work. Looking ahead, firms expect even bigger gains from AI that include reducing overhead, cutting costs, and increasing productivity.

Interested in putting AI to work in your firm? Below you’ll find ten ideas to support your firm's marketing and law firm management efforts, along with an AI-based arbitration resource. 

But before jumping in, remember that when choosing and using AI in your practice, proceed carefully and ensure that you fully understand your ethical obligations. For example, never input sensitive client data into consumer-grade platforms, and carefully review AI-generated output for accuracy. 

With those caveats in mind, here are ten new ways to put AI to work.

10 more use cases

1. Draft your firm’s policies and procedures manual

Use case: Generate drafts of firm policies and procedures for review and implementation.

Prompt: “Create a draft section of the firm’s policies and procedures manual for handling client confidential information.”

2. Create tasks for employee training

Use case: Generate tasks or exercises for training staff or interns.

Prompt: “Create a training task for a new paralegal to practice drafting a complaint in a civil litigation case.”

3. Generate website content

Use case: Develop engaging and relevant content for a law firm’s website.

Prompt: “Generate a compelling ‘About Us’ page for a family law practice, emphasizing experience, compassion, and client-centered service.”

4. Translate web pages into multiple languages

Use case: Translate legal content on the firm’s website for a wider audience.

Prompt: “Translate this page of legal resources about divorce law into Spanish, ensuring accuracy and clarity for a Spanish-speaking audience.”

5. Marketing scripts for videos

Use case: Write scripts for promotional videos or client testimonials.

Prompt: “Write a script for a 90-second promotional video for a law firm specializing in estate planning.”

6. Post ideas for social media

Use case: Generate creative and engaging social media post ideas.

Prompt: “Suggest five engaging social media post ideas for a law firm specializing in family law.”

7. Draft marketing copy

Use case: Create persuasive marketing materials to attract clients.

Prompt: “Write a short marketing email introducing the firm’s new services for personal injury clients.”

8. Draft law firm newsletter

Use case: Draft a newsletter to keep clients informed about legal trends, firm updates, and relevant legal developments.

Prompt: “Write a newsletter for a law firm specializing in employment law, including updates on recent case law, new regulations, and firm news.”

9. Blog post ideas and outlines

Use case: Generate blog topics and structured outlines for blog posts.

Prompt: “Suggest blog post ideas for a law firm focusing on immigration law, including outlines for each post.”

10. Arbitration

See the American Arbitration Association’s AAAi Chatbook for arbitration case prep and presentation. This AI tool allows you to ask questions and receive quick, tailored answers at every stage - from drafting clauses to navigating post-award steps.

How will your law firm use AI?

With that final tip, we’re wrapping up this three-part series of 30 AI use cases for law firms. From trial prep to marketing, these examples show just how versatile generative AI can be in a modern law practice.

By experimenting with AI, you’ll identify ways to increase efficiency firmwide, creating more time to focus on improving client service, enhancing strategy decisions, and supporting firm growth. 

Curious how legal-specific AI tools can save you time? Learn more about 8am MyCase, which helps you draft policies, generate marketing materials, summarize documents, and more—right from your daily workflow.

With more than 15 years of experience helping law firms improve profitability, cash flow, and financial clarity, Kelley Brubaker, CPA, knows the financial challenges attorneys face firsthand. In this post, Kelley shares her top expense management tips to help firms better control costs and make confident financial decisions.

As part of our Counsel Corner series, we’re excited to feature guest author Josh Noffke, founder of Noffke Law and Brass Tacks AI Consulting. Josh’s practice spans transactional law, intellectual property, and data privacy, and he brings a unique perspective by combining legal expertise with AI to help attorneys modernize their tech strategies.

For lawyers, it’s crucial to understand these technologies, their benefits, applications, and risks when considering whether to use them in your practice. If you’re not sure where to start, this comprehensive guide will help you navigate the world of AI and generative AI, as well as provide insights into their relevance and potential impact on the legal profession. Understanding AI and ChatGPT for Lawyers refers to the development of computer systems that can perform tasks that typically require human intelligence, such as understanding language, recognizing patterns, and learning from experience. 

One AI-powered tool that has recently caught the attention of legal professionals is generative AI. A popular example is ChatGPT, a conversational AI model developed by OpenAI. ChatGPT is a natural language processing AI tool that can generate human-like responses to queries. By understanding and responding to a wide range of questions, ChatGPT and other similar generative AI tools have the potential to significantly impact the practice of law.

Generative AI tools like ChatGPT offer many benefits for lawyers, but it’s crucial to understand their capabilities, risks, and limitations before incorporating AI chatbots into your practice.

Why lawyers should learn about AI and ChatGPT 

Generative AI is already being used in the legal profession despite having been launched only a few months ago at the end of 2022. Despite the short amount of time that has passed since it was released, survey results from a recent Thomson Reuters report indicate that the majority of legal professionals (91%) are already aware of generative AI tools like ChatGPT. The reason AI is making such an impact is due to its ability to streamline workflows and automate tedious tasks, saving time and money.

As legal technology companies begin to incorporate generative AI into their platforms, the potential benefits for legal professionals will increase. Familiarizing yourself with these cutting-edge technologies allows you to make educated decisions about when and how to implement them into your practice. Moreover, as part of your duty of technology competence, understanding AI tools helps you stay ahead in a competitive market and adapt to the ever-changing legal landscape.

Benefits of AI in law firms 

The reason for their rise in popularity in the legal profession is that AI tools offer a wide array of benefits that address some of the most pressing challenges faced by lawyers today. Key advantages provided by AI-powered tools include efficiency, improved legal writing, enhanced workflows, and cost-effectiveness. By harnessing the power of artificial intelligence, legal professionals can optimize and streamline their daily workflows, saving their firms time and money. 

Key benefits include:

Efficiency

AI-powered tools can automate various tasks, such as legal research, contract drafting, and document review. By streamlining these processes, lawyers can focus on more complex aspects of their cases. 

Improved legal writing

ChatGPT for lawyers and similar tools can provide suggestions for clearer and more concise language, helping lawyers refine their writing skills.

Enhanced workflows 

AI tools can help lawyers organize and manage their work more efficiently, resulting in a smoother workflow and better client service.

Cost-effectiveness

By automating time-consuming tasks, AI in law firms can help reduce overhead costs and enable lawyers to offer more competitive rates to their clients. 

Examples of how lawyers can use AI in their practices

AI offers lawyers a diverse range of applications to enhance their professional lives. For example, attorneys can employ chatbots for tasks such as drafting legal documents, conducting research, and reviewing contracts. In essence, AI in law firms acts as a valuable assistant that enables legal professionals to focus on the more intricate aspects of their cases while streamlining their workload and improving overall efficiency.

There are many ways that legal professionals can take advantage of the benefits of AI, including: 

Contract drafting and review

AI tools can assist with contract drafting by suggesting language or identifying potential issues within a contract. This can save time and effort in the drafting process. 

Legal research

ChatGPT for lawyers can be used during legal research to provide summaries of cases, laws, deposition transcripts, or pleadings filed with the court. As a result, this tool streamlines the research process and reduces the time spent finding relevant information.

Document generation

AI tools can create workable first drafts of demand letters, discovery demands, nondisclosure agreements, and employment agreements. Although these drafts may require further editing, they provide a solid starting point, saving time and effort. 

Assistance with legal software

Many legal technology companies have begun incorporating generative AI into their platforms. These integrations can enhance the functionality of legal software, providing added value to lawyers.

Predictive analytics

AI-powered tools can analyze vast amounts of data to identify trends and patterns that could impact legal outcomes. As a result, AI can help lawyers make more informed decisions about case strategies. 

E-discovery

AI tools can help expedite the e-discovery process by quickly identifying relevant documents and information, reducing the time and cost associated with manual review.

Language suggestions

AI can recommend clearer and more concise language for correspondence and legal documents.

However, note that it is essential to review any and all output provided. At this stage of the game, generative AI tools are still relatively new. As a result, you assume the risk of some errors when you use them. As a best practice, consider any output to be a rough draft that requires editing and review prior to using it.

Risks and issues of AI in law firms 

While generative AI has incredible potential, its drawbacks are not insignificant. It can sometimes produce false information, leading to inaccuracies in the generated content. Lawyers should have a working knowledge of the issues being queried and the foundational ability to discern false information. There may also be confidentiality issues to consider since many products will add user input to their database to improve future responses.

So when you utilize these tools, it is essential to be aware of the potential risks and issues associated with their use, which include: 

Accuracy and reliability

AI-generated content may not always be accurate, and these tools may produce errors or even false information. It’s crucial to review, edit, and supplement any AI-generated content thoroughly. 

Ethical considerations

The use of AI tools raises ethical concerns, such as ensuring client confidentiality and maintaining professional responsibility. Lawyers should stay informed about the ethical implications of AI use in their practice. Resources like LawPay’s AI ethics and best practices guide offer valuable insight into how legal professionals can adopt AI responsibly.

Data security

Using AI tools may involve sharing sensitive client information with third-party software, which can pose risks to data security and privacy. Lawyers should ensure they choose AI tools with robust security measures in place.

Ongoing learning

As AI technology continues to evolve, it’s essential for lawyers to stay updated on the latest developments and advancements in AI tools. This practice ensures that they use these tools effectively and responsibly.

For more information on modernizing your law firm, check out our article on how to become a SaaS lawyer to improve your firm's efficiency and profitability.

What comes next for AI in law

AI and ChatGPT are undeniably the future of the legal profession, but they are not perfect. Lawyers should familiarize themselves with these technologies to stay ahead in their practices, ensuring they understand the potential benefits, risks, and limitations. By staying informed and cautiously implementing these tools, legal professionals can harness the power of AI to enhance their practice, improve efficiency, and ultimately better serve their clients.

With MyCase IQ, you can tap into legal-specific AI, streamlining tasks like document summarization, text editing, case search, and automation, so you work faster, communicate more clearly, and focus your time on high-impact work. Learn more.

Common Questions About AI in Law Practice

1. Is it ethical and legal for lawyers to use ChatGPT?

AI tools like ChatGPT can implicate ethical concerns about client confidentiality and unauthorized practice of law. In fact, in the Mata v. Avianca case, faulty AI-generated legal advice led to reputational and legal consequences for the attorney involved . Lawyers should understand how AI hallucinations occur and ensure outputs are carefully reviewed and human‑supervised .

2. How can lawyers ensure AI outputs are accurate and avoid hallucinations?

Human oversight is essential. As highlighted by recent reporting in Reuters and The Verge, firms that rely solely on AI output risk generating incorrect or fabricated content—especially when tools produce “hallucinations” such as believable-but-false statements .

3. What are practical use cases for ChatGPT in legal workflows?

Law firms are using tools like ChatGPT to enhance internal workflows—drafting client letters, summarizing case files, and generating marketing materials. Stories from firms like Paul Weiss and DLA Piper provide real-world examples of early adoption in action .

4. How should lawyers write effective prompts when using AI tools?

Effective prompt engineering can dramatically improve output quality. Directions such as “Act as a legal assistant drafting a brief motion,” combined with specific constraints, help create more relevant responses. Our own MyCase team has published a practical guide showing prompt examples tailored for legal use cases .

5. What legal issues are raised by AI training on copyrighted content?

Generative AI models often use large volumes of text that may be copyrighted, raising concerns over unauthorized use. This topic is covered broadly in discussions on generative AI and has captured congressional attention in cases involving major AI platforms and authorship disputes.

Continue your AI journey in Part 2, with 10 additional use cases focused on legal research, writing, and firm management. For more articles on AI, legal tech, and law firm growth, visit the 8am Blog.