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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.

About the author

Pete Hanlon

Pete Hanlon

Commercial

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Commercial

Tata Power Files Criminal Complaint Against Kleros Capital Over $490 Million Arbitration Award

Tata Power has escalated its long-running dispute with Kleros Capital Partners from the courtroom to the police station, with Mumbai Police registering a First Information Report against eight accused parties over an alleged fraud valued at ₹4,800 crore.

As reported by the Free Press Journal, the complaint names Kleros Capital Partners and two former Tata Power employees among the accused, alleging data leakage and criminal conspiracy in connection with a Russian coal mine transaction and the Singapore arbitration that followed.

Tata Power claims that confidential information shared with Kleros under non-disclosure agreements signed in 2013 and 2014 was later used against it in arbitration. It alleges direct losses of roughly $8 million and says a valuation report was prepared without a site visit before being relied upon in the proceedings. None of the allegations has been established in any court.

Kleros commenced SIAC arbitration in November 2020. The tribunal, chaired by Professor Lawrence Boo and including Stuart Isaacs KC and Amal K. Ganguli, issued a liability award in September 2023 and a damages award on 1 July 2025, with the majority ordering payment of $490.32 million plus simple interest at 5.33% per annum.

On 26 August 2026 the Singapore International Commercial Court rejected all three of Tata Power's set-aside applications, finding no breach of natural justice or apparent bias. The Court also held that Omni Bridgeway's involvement in unrelated proceedings involving the arbitrators did not establish apparent bias. Tata Power shares fell 3.89% following the ruling.

Commercial

Federal Court Approves $12 Million Funder Commission in RAMS Franchisee Settlement

Australia's Federal Court has approved a $12 million funding commission to Court House Capital out of a $29.6 million class action settlement, rejecting the suggestion that hindsight should be used to shrink a funder's reward.

As reported by Australasian Lawyer, Justice Lee handed down Top Ryde Financial Services Pty Ltd v RAMS Financial Group Pty Limited (Settlement Approval) [2026] FCA 1652 on 30 October 2026, approving roughly $16.6 million in total deductions comprising $4 million in legal costs and the $12 million commission.

The proceeding was brought by 15 former franchisees of RAMS, Westpac's former home-lending business, who alleged wrongful termination and the withholding of 25% of trail commissions after termination. The settlement deed required payment of $29,624,397.67, made up of withheld trail commission with interest plus an additional sum of approximately $20.8 million. RAMS also agreed to stop withholding part of future trail commission and to offer buy-outs of future trailer income. There was no admission of liability.

The Court acknowledged the commission exceeded the average percentage seen in some recent approvals, but noted that alternative formulas in the funding agreements would have produced either $8.58 million or $16 million. All but one franchisee had signed a funding agreement, and no group member objected. Justice Lee remarked that "a headline percentage may conceal more than it reveals," though he did limit the reach of the settlement deed.

For context, the 7-Eleven franchisee class action settled for $98 million in 2021, inclusive of a $24.5 million funder commission.

Commercial

Rightmove Attacks Innsworth Funding Agreement in £1.6 Billion Class Action

Rightmove has challenged the litigation funding agreement underpinning a £1.6 billion collective action against it, arguing that funder Innsworth Advisors holds an excessive degree of control over the proceedings.

As reported by Global Competition Review, the property portal told the Competition Appeal Tribunal that the agreement is structured to secure the funder a potentially inappropriate return, with Innsworth reportedly in line for around £100 million.

The claim is brought by former Competition and Markets Authority panel member Jeremy Newman on behalf of roughly 7,200 class members, largely estate agents, letting agents and new-homes developers who paid listing fees between 1 April 2020 and 1 April 2026. The underlying allegation is abuse of dominance through excessive and unfair fees. The claim is funded by Innsworth Capital, the UK litigation funding arm of Elliott Management, with Scott+Scott UK LLP acting as counsel and Kairos Economics providing economic analysis.

The certification dispute centers on whether the action should proceed on an opt-out or opt-in basis. Rightmove argues that allowing opt-out here would raise questions about when opt-in could ever be appropriate. The proposed class representative counters that forcing an opt-in process is designed to shrink damages or exhaust the budget so that the litigation will "run into the sand," citing complexity, modest individual recoveries and fear of retaliation from a must-have commercial partner as deterrents to signing up.

The Tribunal rejected comparable opt-in arguments earlier in 2026 in Stasi v Microsoft, Ennis v Apple and Brook v Google. Rightmove has said it will defend the claim vigorously.