Despite a decrease in transaction activity, Seyfarth Shaw reported approximately 3% revenue growth in 2023. The firm has a growth strategy that includes the expansion of new practices, locations, and the application of artificial intelligence. Profits per equity partner also increased in 2023, albeit at a slower rate than the revenue. This was a result of the firm’s expansion drive, which saw the addition of 22 partners in the last 13 months, as stated by the firm’s chair and managing partner, Lorie Almon, in an interview.
The firm, originally founded in Chicago in 1945 with a primary focus on labor and employment law, has grown its areas of specialization to include litigation, real estate, and transactional work. In 2023, the firm opened its 18th office in Dallas with a team of real estate lawyers and litigators, demonstrating the firm’s quest for geographic diversification.
It is noteworthy that Seyfarth Shaw, a 931-lawyer firm that generated $855.9 million in revenue in 2022, is managed by its first female leader, Lorie Almon, who assumed the role in late 2023.
The firm aims to grow not via large-scale mergers, but rather through the addition of partner and team members. Geographically, the firm is eyeing Florida for expansion given the financial companies that are relocating there. London, a city witnessing several high-profile lateral hires among Big Law firms, is also indicative of possible future presence for the firm.
Confronted with the recent challenge of where they stand concerning associate compensation after increases by legal giants like Milbank and Cravath Swaine & Moore, Seyfarth chose not to match these raises directly but elected for a $20,000 raise across all associates with no changes to the billable hours requirement.
Seyfarth’s labor and employment practices have flourished over the last year due to union activity and are expected to continue growing into 2024. The advent of generative AI also presents potential growth, as corporations are seeking advice on how to manage its implications. Generative AI market is expected to surge from $40 billion in 2022 to a whopping $1.3 trillion over the next decade.
Almon adds that the firm is already advising clients on AI navigation, particularly in the employment space, but also in real estate around tenancies and leases. She believes that the firm’s industry knowledge in AI, which they started developing about 12 years ago, gives them a significant competitive advantage.
The firm is not only helping its clients navigate AI use, but it is also considering ways to use AI to improve the quality and efficiency of its service. In the future, the firm plans to use AI to enhance decision-making processes and to expedite the delivery of knowledge to its clients.
According to Almon, the transition to a more AI-integrated profession will not happen immediately. Still, she believes it may take about two years for AI to start transforming the legal industry significantly.