ABA Pushes Back on Early Recruiting, AI Reshapes Hiring & NextGen Bar Exam Debuts
The American Bar Association approved several key policy resolutions during the first day of its annual meeting, including a measure urging law schools and firms to examine the impact of increasingly early Big Law recruiting on students' education and career development. The ABA also adopted updates to its Model Rules of Professional Conduct, clarifying attorney responsibilities related to client confidentiality, disclosure of legal errors, fee modifications, and prosecutorial obligations, while reaffirming its commitment to diversity and inclusion under incoming leadership. The recruitment resolution, introduced by law students, reflects growing concern that accelerated hiring timelines are pressuring students to make career decisions before receiving grades or gaining meaningful exposure to different practice areas.
MARKET MOVEMENTS
Former Gates Foundation deputy GC, Ken Miller, joins Arnold & Porter
Morgan, Lewis & Bockius LLP adds McGuireWoods LLP energy pro, Jude Leblanc, in Houston
Cleary Gottlieb Steen & Hamilton LLP adds litigators Anna Naydonov and Alex Talarides, from White & Case LLP and Orrick, Herrington & Sutcliffe LLP
Linklaters continues NY growth with Paul, Weiss, Rifkind, Wharton & Garrison LLP trio, César Rivière, Grant May, and Cara Day
FIRM SPOTLIGHT - SULLIVAN & CROMWELL LLP
Sullivan & Cromwell LLP has built a global reputation as one of the world's leading corporate law firms, expanding internationally to meet the growing demands of cross-border M&A, finance, restructuring, and complex litigation.
For more than 140 years, the firm has advised some of the world's most influential companies and financial institutions, consistently earning top rankings across corporate and litigation practices. S&C is also known for its distinctive generalist approach, allowing associates to gain broad experience across practice areas and industries while benefiting from extensive training, structured career planning, and professional development programs designed to support long-term success.
INDUSTRY INSIGHTS
Survey responses from earlier in the year show that Big Law continues to be relatively debt-averse, the industry’s traditional position, with only 16% of Am Law 100 firms polled saying they incurred new debt in 2025, and 21% of Am Law 200 firms saying the same.
Based on lateral addition and departure data from legal intelligence company SurePoint, Wachtell saw its partnership shrink approximately 9% during the first half of the year. Only three law firms among the 200 largest in the U.S. experienced a steeper percentage decline.
In the survey of almost 3,000 lawyers, women reported higher levels of stress across multiple categories, including financial strain, mental wellness, sleep disturbance, family relationship issues, anxiety and depression.
Vinson & Elkins completed its first artificial intelligence hackathon in June, called the V&E GenAI Cup, to generate more staff excitement about AI and gather new ideas for projects. Firm leaders told Law360 Pulse there was a 50% month-over-month increase in the usage of tools across every category following the hackathon. There has also been an uptick in the number of employees signing up for tech learning courses.
NextGen Bar Exam Launches with Mixed Results
The NextGen Bar Exam was successfully administered for the first time across nine U.S. jurisdictions, marking a major milestone as it begins replacing the Uniform Bar Exam nationwide, though Washington canceled its administration due to technical issues affecting nearly 650 test-takers. Developed by the National Conference of Bar Examiners, the fully digital exam is shorter than its predecessor and places greater emphasis on practical legal skills, including legal research, writing, client management, and issue analysis. Most jurisdictions completed testing successfully despite isolated technical disruptions, with additional states set to adopt the NextGen exam through 2028.
How AI Is Changing Big Law Recruitment
Big Law's continued shift toward lateral hiring over entry-level recruiting is raising questions about the future of the traditional law firm model as AI increasingly automates routine junior associate work. While firms are responding to client demands for greater efficiency and reduced costs, industry leaders warn that relying less on early-career lawyers could weaken the apprenticeship model that has long developed future partners. As AI reshapes legal workflows, firms and law schools are being challenged to rethink how they train the next generation of lawyers, with greater emphasis on strategic thinking, judgment, and client relationships.
