ARLINGTON, Va., June 5, 2026 /PRNewswire/ — Bloomberg Law today released its first State of Practice report of 2026 examining how legal professionals are navigating a rapidly changing business and regulatory environment shaped by artificial intelligence, geopolitical uncertainty, tariffs, and surging demand tied to data center development.

The report draws on responses from 760 law practitioners across law firms and corporate legal departments, offering insight into how the legal industry is adapting to emerging risks and opportunities.

Among the report’s findings:

Geopolitical instability continues to affect transactional work and client decision-making. Half of respondents from the largest law firms with visibility into client transactions said deals have been put on hold because of geopolitical risk, while one-quarter said clients have exited or are expected to exit deals entirely.
While AI use among attorneys has become increasingly common, four in 10 law firm respondents said their firms do not disclose attorney AI use on client bills.
As legal demand related to data centers grows, firms are building specialized capabilities to support clients. About one-third of respondents from mid-sized firms said their firms have created cross-functional teams dedicated to data center matters, with adoption increasing among larger firms.

The report also explores how attorneys are responding to federal government actions, evolving trade dynamics, and the operational implications of emerging technologies.

To download the full report, visit https://aboutblaw.com/blWq.

About Bloomberg Law

Bloomberg Law provides the content and technology legal professionals need to act decisively in a rapidly changing world. Trusted by law firms, corporations, and government agencies, the Bloomberg Law platform combines authoritative news, expert guidance, market intelligence, and advanced research tools to equip legal professionals with the insights they need to deliver guidance with confidence.

Bloomberg Law is part of Bloomberg Industry Group, an affiliate of Bloomberg L.P., a global leader in business and financial information, data, news, and insights.

For more information, visit pro.bloomberglaw.com.

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