Madrid annual report
major challenge for law firms, as
is procurement in the sense that
lawyers have to increasingly deal
with procurement professionals.
“You have to talk to people who
don’t know you and who just
have a budget,” Remedios said.
He added law firms also face the
How do you think the
Madrid legal market will
change in the next 12
months?
“Madrid is a benchmark in terms
of innovation in the Spanish legal
sector. There will be mergers
involving medium-sized law firms
with a presence in the capital, in
addition to the arrival of Anglo-
Saxon firms that, until now, had no
representation in Spain.” Alejandro
Touriño, managing partner, Ecija
“In-house legal departments are
constantly reducing costs. As a
result the legal market is more
competitive – law firms will have
to leave old-fashioned ways of
practising law behind and become
more business-like organisations.”
Coral Yáñez, partner, Bird & Bird
“Investors are ready to invest in
Spain. Available funds may push
prices up in M&A and real estate
transactions and, therefore,
investors will have to assess assets
carefully to get the best value.
There could be consolidation
in the renewable energy, retail
and healthcare sectors.” Rodrigo
Martos, Madrid managing partner,
Jausas
“Digitalisation is a challenge – most
firms will deal with the change in
the near future. Blockchain and
artificial intelligence will play a
significant role in the way firms
develop their technological strategy
and cybersecurity will be key.” Adolf
Rousaud, managing partner, RCD
“Madrid firms will look to attract
international business, with
potential for absorbing UK-based
activity due to Brexit. Most activity
will be in real estate, energy and
retail.” Lupicinio Rodríguez Jiménez,
executive chairman, Lupicinio
International Law Firm
“The market will follow its growth
path, with significant work for head
hunters.” José Antonio Rodríguez,
partner, Marimón Abogados
www.iberianlawyer.com
issue of having to make decisions
about which technology to invest
in – for example, when addressing
the issue of cybersecurity – and
such investment “can affect
profitability”. With regard to the
issue of major corporate firms
doing less due diligence and using
less junior lawyers, Remedios
warned that if firms “reduce the
base of the pyramid, it will impact
negatively on profitability”.
Law firms are benefiting from
significant activity in sectors such
as real estate and technology, said
Pérez-Llorca senior partner Pedro
Pérez-Llorca. He added law firms
now need to invest the income they
are receiving, and that not doing
so involves many risks. “Partners
should not overpay themselves,”
he said. He added that, while law
firms have chosen to invest in
artificial intelligence, the “potential
success of such investment is still
questionable”. He also said the
success of the ‘Big Four’ in the
Spanish market has been limited
and that they do not have major
roles in the biggest deals.
While law firms are increasingly
using artificial intelligence, the
impact of such technology has been
slower than expected, according
to Linklaters Madrid managing
partner Iñigo Berricano. He added
that artificial intelligence will
probably mean law firms have
to train young lawyers differently
and that it could have an impact
on how law firms hire people. He
said, ultimately, firms will have
fewer junior lawyers in future.
Meanwhile, Berricano predicted that
“agile working” will become a more
common legal market trend in future
as studies have shown law firm
offices are often under-occupied.
He also said there is certain to be
more law firm mergers and added
that Linklaters is “bound to have an
alliance with a US firm” eventually.
Deciding how to invest resources
in a growing M&A market is
a key issue for law firms, said
Freshfields Bruckhaus Deringer
Madrid managing partner David
Franco. “There is a risk of trying
to capture too much work and
overlooking client relationships,” he
said. Franco added he is sceptical
about law firms’ ability to develop
“proprietary artificial intelligence”
that sets them apart from the rest.
“Artificial intelligence is for the time
being about training and using a
tool in ways that not all other law
firms will – AI doesn’t add the same
value in all areas, though it can be
particularly useful, for instance in
antitrust investigations.” Franco
says AI provides law firms with
opportunities to improve service
and increase profitability, but firms
should ensure they do not offer
commoditised AI-based services.
What are the biggest management challenges law firms currently
face?
“Digital transformation and the use of artificial intelligence. Being at the forefront of
this transformation will allow firms to be more competitive and focus efforts on added-
value for clients.” José María Segovia, senior partner, Uría Menéndez
“Building a proper route to partnership for woman and attracting talent because fewer
law students (mainly on joint degrees) seek a law firm career.” Fernando Bernad,
Madrid managing partner, Cuatrecasas
“Law firms must achieve a balance between providing clients with added-value advice
and good value for money but also delivering solutions for employees that promote
work-life balance, diversity and inclusion.” Miguel Riaño, Madrid managing partner,
Herbert Smith Freehills
“The battle for talent. Attracting and retaining the best lawyers is essential for firms’
future sustainability.” Luis Fernando Guerra, managing partner (Spain), Deloitte Legal
“The mentality of the new generation and greater competition will accelerate changes
such as greater flexibility. Meanwhile, management should be transparent and socially
responsible.” Francisco Palá, managing partner, Ramón y Cajal Abogados
“Achieving efficiency and profitability with technology, while conserving the personal
touch and maintaining trust.” Sonia Gumpert, managing partner, Monereo Meyer
Marinel-lo Abogados
May / June 2018 • IBERIAN LAWYER • 43