A Look Back at The Changing Landscape of Legal Hiring in 2023

Stephanie Brückl • 13 November 2023
The legal job market has witnessed significant shifts in 2023, with some unique challenges and changes compared to previous years. This blog explores the evolving landscape of legal hiring, the impact of artificial intelligence, and what we can expect in the coming months – taken from our in-depth Market Overview. You can download the full report here.

High Demand for Niche Skillsets

The legal field is no stranger to the ebb and flow of demand for specific skillsets. In 2023, lawyers with experience in areas like capital markets, derivatives, funds, banking and finance, as well as corporate and regulatory expertise, have been in great demand. This demand primarily stems from in-house legal teams within the financial services sector, where specialised knowledge is crucial.


However, what's noteworthy is that while there’s still a high demand for these skillsets, there has been a decline in hiring compared to the previous year. The first half of 2023 saw a 35% decrease in job listings within the financial services sector compared to the second half of 2022. Several factors contribute to this decline, including the economic climate, cost-cutting measures such as hiring freezes, and fewer transactions due to market conditions.



Despite the decline in job listings, some financial organisations have benefited from this situation. With reduced competition for top legal talent, they’ve found it easier to attract strong candidates. Notably, there has been an increase in excellent candidates moving from top-tier law firms within private practice to in-house roles.

The Impact of Artificial Intelligence

Artificial intelligence has emerged as a game-changer in the legal industry, significantly affecting the way lawyers work. AI technology is being employed to automate repetitive and time-consuming tasks, such as legal research and document review. This shift is freeing up lawyers' time and allowing them to focus on higher-level tasks, ultimately enhancing their effectiveness.


Reasoning and generation are two key areas where AI is making inroads in the legal profession. Reasoning involves using AI to analyse vast amounts of legal data, statutes, and case law to provide lawyers with relevant information and precedents. It helps in sifting through extensive data quickly and efficiently. On the other hand, generative AI has been utilised to summarise legislation and legal documents, albeit with some challenges like occasional inaccuracies.



While AI has immense potential, it also raises questions about job security and the potential privacy risks associated with handling sensitive legal information. The legal industry is working on developing specialised in-house teams to harness AI's capabilities effectively and safely.

Outlook for 2023/2024

Looking ahead, we can expect a shift in the legal hiring landscape. As the market gradually recovers, there will likely be an increase in job listings. The slowdown in hiring from private practice due to a drop in transaction volume is expected to reverse, leading to higher demand for banking and finance lawyers.


Moreover, regulatory lawyers will continue to be sought after as financial regulations evolve. The market is projected to see more job listings as organizations resume hiring to replace attrition following periods of hiring freezes.



In conclusion, the legal hiring landscape in 2023 has presented a mix of challenges and opportunities. Niche skillsets remain valuable, and AI is becoming an integral part of legal work. Adapting to these changes will be key for legal professionals looking to thrive in this evolving landscape. As we move into 2024, the legal job market promises to continue its transformation, offering both exciting prospects and challenges for lawyers and organisations alike.

For more in-depth analysis of key trends download our Market Insights for Legal In-House Financial Services here: https://www2.hydrogengroup.com/legal-ih-marketoverview

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We're back! We're thrilled to announce the return of our interview series, Women in Law, where we shine a spotlight on the extraordinary women making waves in the legal world. Join us as we delve into their journeys, explore their challenges and triumphs and celebrate their remarkable achievements. Anna is a partner in the Herbert Smith Freehills LLP corporate practice in Dubai specializing in mergers & acquisitions, joint ventures and investments with particular focus on the Middle East. Anna is regularly involved in award winning and other high-profile transactions in the region that span a number of sectors. In addition to executing transactions in the energy and infrastructure sectors, Anna advises on digital infrastructure and TMT transactions. Anna studied law and obtained her master's in law from the University of Warsaw in 2005 and subsequently moved to the UK to pursue her career in law in London. She re-qualified as a solicitor in England and Wales in 2013. She spent over 13 years working for two US law firms in the City of London before moving to Dubai and joining Herbert Smith Freehills in 2018 as a senior associate. Anna was first promoted to of Counsel in 2023 and elevated to partner in May 2024. Anna is frequently commanded by her clients for her exceptionally pragmatic approach to transactions, enabling them to navigate complex legal challenges with ease. Why did you decide to pursue a career in law? I didn’t always know I wanted to be a lawyer. In fact, I considered other paths. At one point at a very young age, I even thought about joining the army – I admired the discipline and resilience it required, and honestly, some of those skills would be helpful in law, too! While I had considered pursuing an MBA immediately after completing my master's degree, I ultimately chose to move countries and requalify in the UK, believing that this path would provide me with the most meaningful opportunities to advance my career. Looking back on your career, what are some key moments that have helped or hindered you in getting to where you are? There have been many key moments, both positive and challenging, that have shaped where I am today. Early on, studying law in two different languages and legal systems and requalifying in a very competitive market in London was a significant hurdle and achievement, that taught me the value of determination, hard work and persistence. Ultimately, moving firms to prove myself further and eventually relocating to Dubai to accelerate my career were key decisions that allowed me to challenge myself in new ways and grow. On the flip side, there were times when I faced doubts about whether I belonged in certain rooms, especially being a woman in a traditionally male-dominated industry. But each obstacle has made me more determined and shaped my leadership style. Each of these steps has been part of my evolution, and over the years I have learned that resilience and adaptability are key to navigating any obstacle. My promotion to of Counsel and then Partner earlier this year were major milestones, and currently, I am the only female partner in the office, which is something I am incredibly proud of. Having said all that, I know I wouldn't have been able to achieve all this without the support of amazing colleagues and mentors along the way. Do you believe there’s a glass ceiling for women in the workplace, and has it changed? I do believe the glass ceiling still exists in many industries, including law, though progress is being made. I have experienced certain challenges in my career, but I have not faced prejudice based on my gender; I’ve always thought of myself simply as a lawyer, focusing on being the best I can be. Today, we’re seeing more women in leadership roles, and I am proud to be among them. Yet, women still encounter less visible challenges, whether in the form of bias, societal expectations, or balancing family life with a demanding career. While strides have been made, there’s more to be done. Through evolving recruitment practices, mentorship, diversity initiatives, and challenging outdated norms, we can create further change. I’m encouraged by the support women offer each other, and that keeps me hopeful that the glass ceiling will continue to crack. What do you think the legal industry can do to improve diversity & inclusion? The legal industry has made progress, but there’s still room for improvement. First and foremost, we need more than just diversity in numbers—we need inclusion at every level, where everyone’s voice is heard and valued. This can be achieved through better representation in leadership positions and by ensuring that recruitment practices are truly inclusive. Broaden recruitment criteria to include candidates with diverse life and career experiences will create a more inclusive environment and enrich teams with new perspectives. Mentorship and sponsorship programs for underrepresented groups can make a huge difference in retaining diverse talent. The industry also needs to focus on creating a supportive environment where people can bring their authentic selves to work without fear of judgment. As part of my new role, I make it a priority to champion diversity and inclusion, and I encourage others to do the same. What advice do you have for young women looking to make a career in your industry now? My advice to those starting their legal careers is that hard work is essential, but in today’s world, it’s also crucial to be resilient, proactive and open-minded. The legal world is evolving, so it’s crucial to stay alert to change and seek out opportunities, even if they’re outside your comfort zone. Your career may not be a straight line, it may have twists and turns, but each step, whether a success or a setback, adds to your growth. The most successful lawyers are often the ones who are authentic and have taken unique paths to get where they are. Success is as much about resilience and adaptability as it is about effort. Focus on building core skills and surround yourself with a network that supports and challenges you. And, most importantly, stay true to your values and who you are.
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