Disputes Outlook 2025

• Increase in AI-related disputes as AI is embedded in organisations.
• Clarification expected on copyright infringement by generative AI software.
• AI will play an increasing role in tech-enabled legal project management.
• Increase in IT disputes due to continued investment in upgrading existing systems.

• Increasing ESG regulations and reporting requirements necessitate new processes to minimise risk.
• Rising challenges from regulators (ASA, CMA, FCA) and campaign groups on alleged greenwashing.
• ESG considerations must be integrated into operations, decision-making, and dispute resolution to align with green objectives.

• The new Employment Rights Bill will significantly affect future employment disputes.
• An expected increase in compliance checks by HMRC will lead to more tax disputes.
• The Product Regulation and Metrology Bill will modernise the UK's product and metrology regulatory regimes.
• Significant reform is anticipated of the financial services regulatory redress framework.
• Developments expected in the regulatory and legislative approaches to cryptoassets.

• Economic uncertainty will inevitably lead to an increase in disputes and organisations should be vigilant.
• Financial pressure on construction contractors will cause more corporate insolvencies.
• Debt claims and warranty disputes will increase.
• Financial crime, particularly APP fraud, will remain a significant drain on the economy.
• More insolvencies involving financial intermediaries expected.

• Legal project management will be increasingly used in complex disputes to ensure claims are delivered on time, on budget and within agreed parameters.

• Significant growth expected to continue in 2025 and beyond, particularly in data protection/privacy, competition, and various aspects of the financial services arena, such as motor finance commissions and PPI.

Commercial disputes

Live issues  

• Data Breaches
• Post-termination restrictions
• IT contract disputes  
• Class actions  
• Increased copyright litigation

Emerging trends  

• AI disputes  
• Copyright issues with generative AI
• Economic uncertainty and related claims
• Compulsory mediation
• ESG litigation

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Regulation

Live issues  

• Increase in high level financial sentences  
• Continued focus on environmental claims for consumer goods
• Product Regulation and Metrology Bill  

Emerging trends  

• CSRD reporting and UK sustainability reporting
• Modern Slavery reporting changes

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Employment

Live issues  

• Employment Tribunal claims  
• MyHMCTS portal  

​Emerging trends  

• Sexual harassment claims  
• New Employment Rights Bill    
• Employment Tribunal fees

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Insolvency

Live issues  

• Assignments of insolvency claims instead of funding agreements  
• Covid loan enforcement action
• Increasing corporate insolvencies  
• Financial pressure on contractors

‍Emerging trends  

• Formal insolvencies involving financial intermediaries
• Expanded claims against directors of insolvent companies
• Digital and crypto assets in IP asset recovery proceedings
• Increasing pressures in the construction industry

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Financial services

Live issues  

• APP fraud      
• Cryptocurrency    
• Settlement/release    
• New type of security in Scotland  

Emerging trends  

• Group litigation
• Financial Crime  
• Commission disclosures  
• Financial greenwashing    
• FCA and FOS powers
• Data disputes    
• Arrestment process and mental health moratorium in Scotland

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Tax disputes

Live issues  

• Pre-Budget activity  

Emerging trends  

• Changes to Capital Gains Tax  
• BEPs  
• Resident basis tax changes  
• Increasing resources at HMRC

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Legal Project Management for disputes

• Early case assessment
• Tech-enabled LPM  
• LPM as an internal partner

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Greener litigation

• Tackling the environmental impact of dispute resolution
• The Greener Litigation Pledge

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