Law, accounting sectors adapt to AI, regulatory changes

Change is accelerating across Virginia’s law and accounting sectors, as artificial intelligence, evolving regulations and workforce pressures reshape how professional services firms operate.

Anecdotally, Virginia attorneys are increasingly incorporating AI into their daily work, finding it a useful tool to increase efficiency and potentially a way to reassess the billable hour model, reducing the cost of legal services for clients and expanding access to legal services among those who were once priced out. Firms are using AI to assist with tasks ranging from research and document drafting to billing and transcribing client conversations. Some believe AI may help reduce burnout.

“Now, you can spend more time being strategic,” says Justin Ritter, founder of Ritter Law in Charlottesville. “Ultimately, I’m trying to create a high-quality work product faster and cheaper, and these tools allow me to do that and in ways I never really thought were possible.”

However, adoption of AI is uneven, with many lawyers reluctant to fully embrace the technology. In 2025, some attorneys received disciplinary referrals for using generative AI to write briefs, which then were exposed as inaccurate. U.S. Sen. Chuck Grassley called on the federal judiciary last fall to formally regulate federal judges’ use of AI in court orders.

Punishment aside, some attorneys don’t have time or money to see how they could use AI tools to speed up work, and larger firms can be thwarted by internal bureaucracy. Most law firms also continue to grapple with how to protect client data and use AI tools ethically.

“We’re trying to balance innovation with responsibility,” says Beth Burgin Waller, chair of Woods Rogers’ cybersecurity and data privacy practice and an AI expert.

Meanwhile, Virginia lawyers also are experiencing major regulatory changes. In 2025, the Virginia General Assembly passed legislation that narrowed who could be subject to noncompete agreements. Under earlier law, employees who made less than $76,081 a year in 2025 were exempt from such agreements, which prevent working for a competitor business immediately after leaving a firm.

But as of July 1, 2025, salary level no longer governs noncompete agreements in Virginia, leading to a reconsideration of how employers classify their employees under the federal Fair Labor Standards Act.
Experts say Virginia’s new law continues a broader push for limiting noncompete agreements, and that it’s likely that employers will instead use more targeted tools such as non-solicitation and confidentiality provisions.

However, Williamsburg attorney Brian G. Muse says noncompetes will still have a place for high-level executives, particularly in connection with the sale of a business.

Meanwhile, Virginia’s accounting profession is grappling with a persistent workforce shortage and is responding with a significant change to its requirements for becoming a certified public accountant. Starting this year, prospective CPAs no longer need 150 college credit hours to become licensed. Instead, people with bachelor’s degrees can become a CPA after working in the field for two years and passing the certification exam.

Employers and educators hope this adjustment will increase the number of college students entering accounting, encouraging those who had previously been deterred by the cost and time required for additional coursework. With financial barriers reduced, they hope the change will expand the accounting talent pool.

Employees from the Glen Allen firm Keiter noted last fall that they had already seen an uptick in the number of students interested in accounting and believe the change may draw more young people to the profession.

“We have seen more entry-level students looking for jobs than we have in the past several years,” Keiter human resources director Mandy Nevius told Virginia Business last year.