Trending Now
Commercial Funder's Corner Special Features Thought Leadership

The Next Wave of AI: What’s Really Coming in 2025

By Pete Hanlon |
January 29, 2025

The Next Wave of AI: What’s Really Coming in 2025

The following post was contributed by Pete Hanlon, Chief Technology Officer of Moneypenny.

As CTO of Moneypenny, the leading outsourced communications company, Pete Hanlon brings a unique perspective to the transformative technology trends set to shape 2025 for lawyers. From advancements in AI to the realities of integration and regulation, he foresees pivotal changes that could redefine the legal profession and beyond.

Here’s a deep dive into what lies ahead—not just the obvious shifts, but the deeper changes that could impact how lawyers work,.

Open Source Is Coming for the Crown

The most exciting battle in AI isn’t unfolding in corporate labs, it’s happening in the open source community. They’re catching up fast, and were starting to see open source models going head to head with industry leaders such as OpenAI o1 and Claud-Sonnet-3.5. This isn’t just about matching performance metrics. It’s about making AI accessible to both large and small law firms that have been held back by data privacy concerns, opening doors for firms that have struggled to leverage this technology. The result? A new era where AI is democratized, accessible to all, and no longer controlled by closed source businesses.

Forget AI Replacing Lawyers – Think AI as Your Digital Colleague

Remember when everyone thought AI would replace many law firm jobs overnight? That’s not how it’s playing out. Instead, we’re witnessing the emergence of hybrid teams where AI takes on the repetitive tasks, leaving people free to handle more complex challenges. It’s less about replacing jobs and more about using AI to super power people and using data to enable smarter decision making. Moneypenny, for example, delivers outsourced communication solutions that blend the efficiency of AI with the personal touch of real people. This balanced approach boosts productivity and enhances customer satisfaction. 

Integration: The Real Challenge Nobody’s Talking About

Here’s where things get interesting and complicated. The next phase isn’t about building brand new AI systems, for lawyers it’s about weaving them seamlessly into existing business processes, work flows and infrastructure. Picture CRM systems that can predict what customers need, knowledge bases that update themselves, conversations that flow naturally between voice and text, and customer support that breaks language barriers. We understand the importance of seamless integration, and at Moneypenny, we’re fully embracing it helping legal teams embed AI powered systems into their infrastructure seamlessly . 

Industry Specific Models: Tailored AI for Specialized Needs

We’re entering an era of industry specific LLMs tailored for the legal field. These models will come pre loaded with domain-specific knowledge, enabling firms to deploy AI that understands their unique requirements, language, and regulatory needs. In finance, LLMs could support compliance and offer investment insights. In law, they could streamline contract review and case law analysis. These specialized models will allow companies to quickly implement AI that’s relevant, compliant, and impactful in their field.

The Reality Check Is Coming

Some firms may soon realize they’ve taken on more than they can handle with AI adoption, facing a range of unexpected challenges. Many will struggle with complex integration issues as they attempt to launch AI initiatives within existing systems. Additionally, there may be difficulties in managing the high expectations around AI’s capabilities, as reality often falls short of the hype surrounding its potential. 

Regulation: The Elephant in the Room

Law firms should prepare for the growing impact of AI regulations, particularly in customer facing applications. Forward thinking organizations are already taking steps to build transparency into their AI systems, overhauling data governance practices to ensure accountability. They are creating detailed audit trails to track AI decision making and making sure that their systems are both fair and accessible. These proactive measures not only help them stay compliant but also foster trust with their customers.

What This Means for lawyers

The next year won’t just be about AI getting better – it’ll be about AI getting smarter about how it fits into our existing world. Success won’t come from blindly adopting every new AI tool. It’ll come from carefully choosing where AI can genuinely improve how lawyers work.

The winners won’t be the companies with the most advanced AI. They’ll be the ones who figure out how to blend AI and human capabilities in ways that make sense for their business and their customers. Yes, we’ll see AI continuing to be more accessible and capable. But the real story will be about how lawyers learn to use it wisely. After all, technology is just a tool – it’s how the legal profession use it that matters.

Secure Your Funding Below
Secure Your Funding Sidebar

About the author

Pete Hanlon

Pete Hanlon

Commercial

View All
Case Developments Commercial

YPF Dispute Under Consideration in US Court

By John Freund |

A three‑judge panel of the U.S. Court of Appeals for the Second Circuit is weighing whether the case involving the Argentine nationalisation of oil company YPF should have been litigated in the U.S. in the first place. The original ruling awarded approximately $16.1 billion to minority shareholders.

An article in Finance News highlights that Burford Capital—which provided substantial litigation finance support for the plaintiffs—is now under scrutiny, and the uncertainty has already knocked more than 10 % off Burford’s share price.

According to the report, two of the appellate judges expressed scepticism about whether U.S. jurisdiction was appropriate, signalling a possible shift in the case’s trajectory. The funding provided by Burford makes this more than a corporate dispute—it's a pivotal moment for litigation funders backing claims of this magnitude. The article underscores that if the award is overturned or diminished on jurisdictional grounds, the returns to Burford and similar funders could shrink dramatically.

Looking ahead, this case raises critical questions: Will funders rethink backing multi‑billion‑dollar sovereign claims? Will lawyers and funders factor in jurisdictional risk more aggressively? And how will capital providers price that risk? The outcome could influence how global litigation finance portfolios are structured—and the appetite for large‑ticket sovereign cases.

Commercial

FIO Flags Rising “Tort Tax” Driven by Third‑Party Litigation Financing

By John Freund |

A recent industry move sees the Federal Insurance Office (FIO) of the U.S. Department of the Treasury warning that the growth of third‑party litigation funding is putting fresh stress on the U.S. property‑casualty insurance sector. The FIO’s 2025 Annual Report on the Insurance Industry highlights the so‑called “tort tax” as a new burden, with insurers and consumers increasingly feeling the cost.

An article in Insurance Business explains that third‑party litigation funding—in which outside investors finance lawsuits in exchange for a share of potential settlements—is now viewed by federal regulators as a significant factor driving up claims costs for insurers.

The report quantifies the burden, pointing to an average annual cost exceeding $5,000 per household. In response, insurance trade groups like the American Property Casualty Insurance Association (APCIA) are throwing their weight behind federal bills such as the Litigation Transparency Act of 2025 and the Protecting Our Courts from Foreign Manipulation Act of 2025, both of which aim to bring greater scrutiny and disclosure to litigation funding practices.

The report also draws on lessons from state-level reforms. In Florida, new legislation that slashed legal filings by over 30% has already helped insurers reduce premiums and issue customer refunds—offering a case study in how tort reform can yield near-term results. While the report also examines the insurance industry’s evolving role in climate resilience and loss mitigation, it makes clear that rising legal system costs remain an urgent and unresolved challenge.

For the legal funding sector, the report underscores a shifting regulatory landscape. With calls for federal oversight gaining traction, funders may soon face new transparency requirements, rate limitations, or reporting obligations. The FIO’s framing of litigation finance as a systemic cost driver is likely to spark renewed debate over how to balance consumer protection, insurer stability, and access to justice.

Commercial Deals

ClaimAngel Hits 18,000 Fundings, Sets New Transparency Benchmark in Litigation Finance

By John Freund |

The plaintiff‑funding marketplace ClaimAngel announced it has surpassed 18,000 individual fundings—a milestone signaling its growing influence in the legal funding arena. The platform, founded in 2022 and headquartered in Boca Raton, Florida, positions itself as a disruptor to traditional litigation finance models.

An release in PR Newswire outlines how ClaimAngel offers a single standardized rate of 27.8% simple annual interest and caps repayment at two‑times the amount funded after 46 months—significantly lower and more predictable than many legacy funders. The platform also claims to bring efficiency and transparency to the market by hosting a marketplace of over 25 vetted funders, allowing competing offers, and integrating directly into law‑firm workflows.

How claimants benefit: The core value proposition is to give plaintiffs “breathing room” when insurers use time as a weapon, enabling lawyers and clients to press for better settlement outcomes rather than settling prematurely under financial pressure. With over 500 plaintiff‑side law firms now using the platform, ClaimAngel is positioning itself as a credible alternative to more opaque “Wild West” funding practices—where a $5,000 advance could balloon into a $30,000 repayment by settlement.

ClaimAngel is striking at the heart of two key pain points: (1) lack of standardized pricing and (2) lack of transparency in funding terms. By offering a fixed rate and capped repayment in a marketplace format, it may prompt other players to rethink fee structures and disclosure practices. The milestone of 18,000 fundings also signals broader acceptance of tech‑driven innovation in a space often slow to modernize.