How Litigation Trends in the UK Are Changing in 2025 The UK litigation landscape in 2025 is marked by significant shifts driven by evolving technology, regulatory changes, and economic pressures. Businesses and legal practitioners face a more complex environment with rising class actions, increased scrutiny on environmental and governance issues, and a growing role for artificial intelligence (AI) in disputes. Understanding these trends is crucial for effective risk management and strategic planning.

1. Rise of Class Actions and Collective Litigation 2025 is expected to see a substantial increase in class or collective actions, particularly in consumer protection, data privacy, and competition law. The UK Competition Appeal Tribunal (CAT) and High Court are handling more group litigation cases, including novel claims related to abuse of dominance and environmental violations. This trend follows the implementation of the Corporate Sustainability Due Diligence Directive and the Representative Actions Directive in Europe, expanding collective redress mechanisms. Businesses must prepare for potentially large-scale litigation that demands significant resources and strategic legal responses[1][2][3].
2. AI and Technology-Related Disputes As AI technologies become more integrated into business operations, disputes concerning AI misuse, intellectual property rights, and regulatory compliance are on the rise. Courts are increasingly called upon to interpret the legal frameworks around AI, including copyright and patentability issues. The absence of clear legislation means litigation will continue shaping the boundaries of AI’s legal status, requiring companies to proactively manage AI risks and compliance[1][3].
3. Environmental, Social, and Governance (ESG) Litigation ESG-related disputes are gaining momentum, with regulators and plaintiffs scrutinizing corporate commitments to environmental and social responsibilities. Litigation in this area often involves allegations of greenwashing, failure to meet sustainability targets, or breaches of governance standards. This trend reflects broader societal expectations and regulatory developments, making ESG risk a key consideration for corporate counsel[1][4][5].
4. Cybersecurity and Data Privacy Challenges Cybersecurity breaches and data privacy violations continue to drive litigation. New legislation and regulatory enforcement are prompting companies to strengthen their data protection measures. Disputes often arise from alleged failures to safeguard personal data or respond adequately to cyber incidents. Businesses are advised to integrate robust cybersecurity protocols and contractual protections to mitigate litigation risks[4][5].
5. Increasing Complexity of Contractual Disputes Economic pressures and changing interpretations of force majeure clauses have complicated contractual disputes. Courts are seeing more cases where parties seek to rely on unforeseen circumstances to excuse performance or renegotiate terms. This complexity requires careful contract drafting and proactive dispute resolution strategies[1].
6. Focus on Litigation Funding and Secret Commissions Litigation funding remains under judicial scrutiny, especially following high-profile cases such as Merricks v Mastercard Incorporated. Additionally, a surge in cases concerning “secret” commissions—undisclosed payments made for business introductions—is expected. The Supreme Court’s 2025 ruling on related cases will clarify duties and disclosure requirements, potentially impacting many sectors beyond motor finance[3][6].
7. Court-Driven Alternative Dispute Resolution (ADR) Following a landmark 2023 Court of Appeal decision, courts now have broader powers to order parties into ADR. Since October 2024, judges have exercised discretion in encouraging or mandating ADR to resolve disputes efficiently. This trend is likely to grow in 2025, influencing how litigation is managed and resolved[4].
8. Restructuring and Insolvency Litigation 2025 is also notable for significant restructuring cases, including the approval of large-scale corporate restructuring plans. Supreme Court decisions have broadened the interpretation of insolvency-related transactions, facilitating more extensive challenges to antecedent transactions. Cross-border insolvency claims are on the rise despite some limitations imposed by recent appellate decisions[6].

Preparing for 2025 Litigation Trends • Enhance compliance and risk management: Focus on ESG, data privacy, AI regulation, and contractual clarity to reduce exposure to disputes. • Invest in dispute resolution: Develop ADR capabilities and prepare for collective actions requiring coordinated responses. • Monitor regulatory and judicial developments: Stay informed on landmark rulings, especially regarding AI, secret commissions, and litigation funding. • Leverage technology: Use AI tools for risk identification and case management to improve efficiency and accuracy.

In summary, 2025 will be a dynamic year for UK litigation, shaped by technological innovation, regulatory evolution, and economic challenges. Businesses that anticipate these trends and adapt their legal strategies accordingly will be better positioned to navigate the increasingly complex dispute landscape.

This analysis is based on recent expert insights and litigation trend reports from UK legal specialists and institutions[1][4][5][2][3][6]. ⁂

1. https://civillitigationlawyers.co.uk/emerging-trends-in-commercial-disputes/
2. https://www.lw.com/en/insights/2025/02/litigation-2024-year-in-review-and-2025-outlook
3. https://chambers.com/articles/business-and-commercial-disputes-in-the-uk-key-litigation-trends-for-2025
4. https://www.taylorwessing.com/en/insights-and-events/insights/2025/01/dqr-what-are-the-litigation-trends-in-2025
5. https://www.nortonrosefulbright.com/en/knowledge/publications/cc043475/2025-annual-litigation-trends-survey
6. https://www.penningtonslaw.com/news-publications/latest-news/2025/spring-into-action-top-10-litigation-trends-to-watch