Prospects and challenges: how the demand for legal services in Ukraine is changing in 2024

The general economic context in which legal services operate can be assessed based on available economic forecasts.

The Ukrainian economic forecast for 2023-2024 assumes a shortage of investment resources, problems with sea and river logistics, an increase in the trade deficit and a reduction in Western financial assistance. This could create conditions for the weakening of the hryvnia and an increase in economic activity in the shadows.

According to Forbes.ua, it is expected that the hryvnia exchange rate will gradually weaken, but the existing gold and foreign exchange reserves will allow the National Bank of Ukraine to control the situation on the foreign exchange market. Taking into account economic trends, real GDP growth is expected to be 3% in 2024. It is also expected that the budget deficit will need to be reduced, which will reduce the scope for fiscal stimulus to the economy. Public debt is expected to reach 95% of GDP, making Ukraine one of the countries with the highest debt burden.

These general economic trends may affect the demand for legal services in Ukraine, as economic activity and the investment climate influence the need for legal support and advice. It appears that legal services will have to adapt to an environment of shrinking budgets, increased risk and increased economic volatility.

Also, the following trends are observed in the legal field:

• Reduction and migration of personnel.
• Attempts to enter European markets.
• GR involvement (building relationships with government agencies. The tasks of GR specialists include monitoring legislative initiatives, conveying information to government agencies and expert influence on decision making. They translate the language of business into the language of officials and vice versa, strive for dialogue and partnership for creating a favorable regulatory environment for business).
• Development of military law.
• The emergence of a large number of small and nano players.
• Upgrading social and public positions.

Legal services: current demand and market trends

The trends listed below reflect the overall global trend towards increased specialization and quality of legal services, as well as the increasing integration of legal and business advisory services to meet a wider range of client needs.

• Participation in European integration and reforms indicates an increasing need for legal services related to the adaptation of legislation and business practices to EU standards.
• International partnerships may mean increased demand for international law services.
• International organizations and funds, becoming stable clients/investors, will require constant legal support for their activities.
• Companies exporting abroad need legal support to comply with export regulations and international contracts.
• The increase in bankruptcies and the need for debt restructuring suggest an increased demand for legal services in these areas.
• The development of Wealth Management implies an increased need for asset management services, including legal ones.
• Focus on high-quality, personalized legal services aimed at meeting the unique needs of clients will become especially important in light of the shift of part of the market to the boutique segment.
• Transformation of legal services into a consulting format implies a reorientation towards providing comprehensive solutions that include not only legal, but also business advice, which opens up new opportunities for growth and development in this area.

Top most popular legal services in 2024 in Ukraine

Based on information from the resources Work.ua and Delo.ua, it can be assumed that in 2024 in Ukraine the demand for legal services will be concentrated in the following areas:

1. Legal support of construction and real estate. Due to the active construction boom in Ukraine, the need for legal support of construction projects and real estate transactions remains high. This includes consultations on land issues, preparation of documentation and licenses, dispute resolution.
2. Consultations in the field of corporate law and investments. There is growing interest in legal support of corporate transactions, including those involving foreign investors. Lawyers in this field help companies navigate the complex regulatory environment and ensure compliance with the law.
3. IT and intellectual property. With the rapid development of the IT industry and digitalization, legal protection of intellectual property, data and cybersecurity becomes key. This includes registration of copyrights, patents, trademarks, as well as support of IT projects and transactions.
4. Military law. Military law has acquired new relevance. This area of legal practice includes protecting the rights and interests of military personnel, providing advice on military law matters, and representing interests in military and civilian courts. Military law covers a wide range of issues, ranging from disciplinary procedures to issues of compensation and benefits for military personnel and their families. Lawyers in this area help resolve disputes related to military service and also provide advice on protecting rights in the event of injury or other specific circumstances related to the performance of military duties.
5. Taking into account general market trends, it can also be assumed that services will be in demand in areas related to recovery from crisis situations and ensuring legal protection of business in the face of changing economic and political situations in the country and the world.

In light of the identified trends, the legal industry of Ukraine is on the verge of significant transformations. Growing demand for legal services in the areas of IT, intellectual property, military law, as well as in the context of economic and political changes requires law firms to be flexible, innovative and adapt to new market conditions. Effective use of technology, responsiveness and comprehensive service offerings will be key to success in this dynamic sector.

The article “Prospects and Challenges: How the Demand for Legal Services is Changing in Ukraine in 2024” is an informative and useful resource for lawyers, businessmen and other interested parties. It provides a general idea of the development trends of the legal market in Ukraine and helps to navigate the changing economic and political situation.

Overall, the information provided provides valuable information about the current economic context in Ukraine and its potential impacts on the legal services market. First of all, forecasts for 2023-2024 indicate a number of economic challenges, such as a shortage of investment resources, problems in logistics, an increase in the trade deficit and a reduction in financial assistance from the West.

I also want to share my professional opinion on the current demand and trends in this area.

Legal services: challenges and opportunities of new times

The legal services market in Ukraine is going through a period of transformation caused by both geopolitical and global trends.

These changes are impacting many aspects of legal service delivery, including traditional legal aid models, the use of technology in the legal profession, and an emphasis on innovation to improve the client experience. With constant changes in legislation and growing competition, law firms are faced with challenges that require flexibility and adaptation to new realities. At the same time, new prospects are opening up related to the possibility of using technology, process automation and the development of specialized areas such as cybersecurity, blockchain and data protection. Effective use of these opportunities allows legal companies not only to successfully overcome the challenges of the time, but also to build new development strategies in a dynamic legal services market.

1. Impact of the geopolitical situation

Current directions:

• International law: sanctions regulation, repatriation of assets, international disputes, migration issues.
• Military law: legal support of military actions, mobilization, war crimes, issues of humanitarian assistance.
• Protection of human rights: assistance to victims of hostilities, protection from discrimination, IDP issues.

Expected growth:

The demand for the listed areas will grow, requiring lawyers to have deep specialization and up-to-date knowledge.

New niches may emerge at the intersection of different legal disciplines.

2. Market digitalization

Expansion:

• Online tools: task automation, case management, access to information, online consultations.
• Artificial intelligence: document analysis, forecasting court decisions, legal research.
• LegalTech: platforms for finding lawyers, online solutions to legal issues.

Profession transformation:

• Lawyers will need to master digital tools and data practices.
• The spread of hybrid models: a combination of traditional and online services.

3. Availability of legal services:

Support measures:

• Development of pro bono practice: attracting lawyers to provide free assistance to socially vulnerable segments of the population.
• Government programs: subsidizing legal assistance, creating a system of free legal consultations.
• Innovative solutions: online platforms for accessing legal information and document templates.

4. My opinion

Law firms need to adapt to new realities by developing new areas of practice, using digital tools, and making legal assistance accessible to everyone.

5. Recommendations

For legal companies:

• Develop specialization in current areas (international, military, human rights).
• Actively use the opportunities of digitalization.
• Offer affordable service packages and pro bono programs.

State:

• Support the development of pro bono practice.
• Ensure access to free legal assistance.
• Stimulate the development of LegalTech solutions.

6. Conclusion

A professional approach to legal assistance in the face of modern challenges requires not only deep knowledge and experience, but also adaptability to changing conditions, the use of innovative solutions and concern for the accessibility of justice for all. The Ukrainian legal services market is in the process of transformation, caused by both economic and internal factors. Successful development in these conditions will require specialization from law firms, an integrated approach to work and the development of new markets.

Vladyslava Rykova

Expert in legal marketing. Head of marketing agency MAVR.

Business degree “Master of Business Administration” (MBA).