Law firm Shoosmiths has just released its 2nd annual litigation report, based on the responses of 360 senior in-house lawyers and general counsel within major UK businesses with a turnover of \u00a3100m+ and including the tech, telecoms, automotive, real estate and financial services sectors.<\/p>\n
The average cost of a major dispute in the UK is now over \u00a3600,000 \u2014 and costs and reputation are bigger considerations than the merits of a case when deciding whether to bring a claim, according to this report, entitled \u201cLitigation Risk 2025: Balancing\u00a0today\u2019s disputes with\u00a0tomorrow\u2019s risks\u201d.<\/p>\n
Given the growing risks to reputation, especially with the implementation of emerging technologies like generative AI, and the potential cost of disputes, companies need to do more to improve their risk-mitigation plans. At 49%, fewer than half have conducted preparedness reviews despite this being acknowledged as the most effective risk mitigation measure.<\/p>\n
Shoosmiths\u2019 second-annual report \u2014 offering insights and tracking trends in how companies perceive and engage with the disputes landscape and the risks and challenges that it presents \u2014 reveals that disputes overall are increasing in the UK. <\/p>\n
The proportion of respondents engaged in disputes in England and Wales, Scotland and Northern Ireland all jumped by 10% or more compared to last year\u2019s report (for example, in England and Wales the numbers climbed from 62% in 2023 to 76% in 2024), and this is expected to rise over the next few years.\u00a0<\/p>\n
Other key findings include:\u00a0<\/p>\n
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- Growth is being driven by competition and regulatory disputes<\/li>\n<\/ul>\n
Far more businesses are involved in competition (42%) and regulatory (50%) cases and boards are aligned with legal teams in considering these among the greatest litigation risks.<\/p>\n
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- In-house counsel are worried about AI risks<\/li>\n<\/ul>\n
Nearly 90% of senior legal decision-makers believe AI discrimination presents a high or moderate risk over the next 12 months, while AI is considered the biggest area of emerging risk by boards. Relatedly, more expect intellectual property risks to increase in the next three years than any other area of disputes.<\/p>\n
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- AI tools are taking off in litigation management<\/li>\n<\/ul>\n
Large corporates embrace AI tools to better manage disputes, with a range of applications adopted in the past year and more than a third of respondents plan to adopt more in 2025.<\/p>\n
Alex Bishop, partner and head of Dispute Resolution & Litigation at Shoosmiths, said: <\/p>\n
\u201cOur Litigation Risk 2025 Report provides critical insights into the challenges businesses face in an increasingly complex regulatory and dispute-resolution environment. By understanding these issues, trends and concerns, companies can better prepare for potential disputes and implement effective risk-mitigation strategies to protect themselves both reputationally and financially. By exploring these tensions and challenges, our report provides practical advice on how businesses can adapt to this evolving landscape.\u201d<\/p>\n
Shoosmiths\u2019 specialist 180-strong team of litigation, international arbitration and dispute resolution lawyers helps clients maximise value, minimise risk and enhance reputations. Shoosmiths works with many leading businesses across sectors to offer innovative solutions in key areas such as lender review, professional negligence, compliance and funding.\u00a0<\/p>\n
The complete report can be\u00a0accessed here<\/a>.<\/p>\n<\/p><\/div>\n
- AI tools are taking off in litigation management<\/li>\n<\/ul>\n
- In-house counsel are worried about AI risks<\/li>\n<\/ul>\n
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