Despite acknowledging these impending concerns, the quintet of sole practitioners have delineated effective strategies they are formulating to navigate and surmount these challenges.

Challenges of AI

Hayley Tarr, a finalist for Australian Sole Practitioner of the Year at Lawyers Weekly Women in Law Awards in 2021 and 2022, disclosed that one of her primary concerns going into 2025 is the increasing influence of AI on the legal profession and its potential to disrupt traditional legal services.

However, despite harbouring this concern, Tarr remains optimistic, emphasising that AI can only be truly effective when combined with specialised legal knowledge, enabling practitioners to ask the right questions and make informed decisions.

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“I have been worried about AI and how that might impact on my practice, but I have realised that – unless you have enough specialised legal knowledge on a subject to know what questions to ask – AI is useless as it only answers the questions you pose,” Tarr said.

Tarr also acknowledged the inherent value that humans offer over AI, expressing how “AI cannot strategise the way I can”.

Despite finding comfort in this notion, Tarr ensures she stays vigilant by closely monitoring the specific queries other professionals pose and evaluating the effectiveness of AI’s replies.

“I am somewhat comforted by that fact, but I am ‘keeping my enemies close’ in that I have been acting as a verifier for AI answers to trademark questions, to keep an eye on what sorts of trademark questions other practitioners are asking and what calibre of answers AI is capable of generating over time,” Tarr said.

She further said: “I am always seeking diversification of income streams, just so I am not a sitting duck if/when the tide turns.”

“Opening an AI think tank called TANK THINK? … The options for Tarr Law in 2025 are as limitless as the possibilities for AI.”

Competing against big firms

For Peter Katsoolis, a finalist for Sole Practitioner of the Year at Lawyers Weekly Australian Law Awards in 2022, the biggest challenge he anticipates facing in the year ahead is distinguishing his practice from larger firms that wield significant influence in the public eye and commanding attention in a saturated market.

He asked himself: “How does a sole practitioner in 2025 compete against the growing public perception that a big firm delivers better results? How does she or he, ‘alone in a crowd’, stand out in what appears to be an increasingly oversaturated marketplace?”

Katsoolis contends that due to the increasing belief that large companies provide better outcomes, he is advocating for creating an advertising standards committee tailored for the legal industry.

“Firstly, it’s high time an advertising standards committee was instituted at the regulatory professional level. At least, some official advertising guidelines would be appreciated. A shiny foyer can only get you so far and is no substitute for proven ability and experience,” Katsoolis said.

Katsoolis acknowledges that sole practitioners often need more marketing budgets and hierarchical prestige than law firms possess.

“A sole practitioner may often lack the marketing budget and outward displays of hierarchical power of larger firms. The client pays for that,” Katsoolis said.

However, he emphasised that he believes sole practitioners offer unparalleled value, especially in today’s socioeconomic climate, where clients face a myriad of legal issues.

“But a sole practitioner, especially in these times of socioeconomic instability, has the capacity to provide far greater value to clients,” Katsoolis said.

“Many clients these days have legal problems over a diverse range of legal areas. There is a growing crossover between criminal and family law as well as defamation and civil claims law. A sole practitioner can live up to the catalogue with greater accessibility and responsiveness, lower overheads and more flexible rates, and above all, a bespoke expert solution for each individual client.”

Workload pressure

Melissa Barlas, the recipient of the Sole Practitioner of the Year at Lawyers Weekly Australian Law Awards in 2023, expressed that while many sole practitioners enter this career path to improve their lifestyle, she anticipates that the primary challenge facing sole practitioners in 2025 will be managing work pressures and the associated feelings of isolation.

“Many sole practitioners take the leap of faith and go out on their own to create a better lifestyle for themselves; work the hours they choose, spend more time with their family, and [have] greater autonomy over how they work,” Barlas said.

“Despite this meaningful purpose, sole practitioners still feel the challenge of lack of resources to manage work pressures, compared to larger corporate firms, and the isolation that comes with being out on your own, so to speak.”

Barlas highlighted that due to the limited resources and support available to sole practitioners, they often encounter heightened pressure and isolation. Consequently, they may undergo elevated stress levels and experience significant impacts on their mental health.

“This has a direct impact on their stress levels and leads to endless hours of work, which plays a significant impact on the mental health of sole practitioners across our country. Much like the days of private practice,” Barlas said.

As a result, Barlas anticipates that sole practitioners will embrace innovative business models to achieve a more harmonious work/life balance.

“In 2025, I expect we will see many sole practitioners adopting new business models to create a better work/life balance. We’ve seen new emerging ways to practice law – 100 per cent online models, back-end support models, more fixed-fee pricing structures, and so on, which are all centred around improving the mental health and wellbeing of lawyers,” Barlas said.

“My conveyancing law firm, Conveyed, is addressing this issue head [on]. We’re working on an exciting venture that will completely change how sole practitioners and conveyancers work so they can get back the time they need to focus on the work they love whilst receiving the admin and community support they need to achieve their purpose of living life by design.”

Branding

Alison Cusack, a finalist for the Sole Practitioner of the Year at Lawyers Weekly Australian Law Awards in 2024, noted that the persistent challenge of the “bush lawyer” or “DIY specialist” phenomenon will continue to prevail in 2025.

“As a practitioner in a niche area, the art of the ‘bush lawyer’ or the DIY specialist has always been an issue. So, too, has practitioners dabbling in the areas well outside their skill set (I know of other niche areas who also suffer from the dabblers),” Cusack said.

In the coming year, she also remains worried about the persistent misuse of AI within the legal profession.

“The concern about the uptake of inappropriate use of AI (need a case? Make one up!) is increasing, and I’ve flagged it with industry providers,” Cusack said.

To counteract these issues, Cusack focuses on building her brand through social media, allowing her to fact-check misleading claims and ensure that the correct information reaches her audience.

“To combat this, though, I am aiming to make my skill set a brand across social media. Which is working as people tag me in to ‘fact check’ when a #hottake seems more full of hot air,” Cusack said.

Economic climate

Catherine Higgins, a finalist for Sole Practitioner of the Year at Lawyers Weekly Australian Law Awards in 2024, argued that economic uncertainty will continue to be a significant challenge for sole practitioners in 2025.

“I think the current climate of economic uncertainty will continue in 2025. I think sole practitioners, in particular, are feeling it, and whilst I don’t think that the legal work is going to dry out, the question is whether clients can pay their bills,” Higgins said.

“Sole practitioners need to be careful about how they run their business and focus on building strong client relationships to address this issue.”