The Legal Year 2025 – a winter greeting from Setterwalls Law Firm

Strong growth, clear client value and rising demand for high-quality legal advice. The effects of Setterwalls’ major AI initiative are now evident, while signs of a more positive economic outlook are energizing both the industry and the business community. Henrik Kjellander, Executive Partner at Setterwalls, reflects on an eventful year marked by sharp contrasts—and looks ahead to a bright 2026.

We undoubtedly live in interesting times.

After a long period of economic volatility, geopolitical crises and a restrained capital market, we are now seeing clear signs of brighter prospects on the horizon. Large-scale AI initiatives, increased M&A activity, and more stock market listings are sending positive signals for the coming year, indicating that the economy is finally gaining momentum.

Might/Dare we hope that ongoing peace negotiations and business’s demand for greater predictability, can pave the way for a more stable—and more humane—2026?

At the same time, the winds of contrast are blowing across Europe, not least in compliance. Within the EU, regulatory simplification is being discussed in the wake of the Draghi report, offering a welcome counterweight to the heightened regulatory burden of recent years. In parallel, the business community continues to face extensive compliance requirements. AI, data protection, accessibility and consumer protection—the list goes on. Successfully navigating this delicate balance between compliance, growth and innovation is becoming even more important for many of our clients.

2025 was the year we truly saw how rapid technological development is reshaping our role as a legal partner. It is a tangible, albeit long-term, shift. We see a gradual shift in the role itself. As simpler task can be streamlined, demand increases for qualified, strategic legal advice. That sets high expectations for us as an industry, while also opening many new opportunities.

Strong growth and strong community

As one of Sweden’s leading business law firms, we stand strong, even when the world around us is turbulent. Over the past year, we have continued to grow on multiple fronts. At our Stockholm office, growth is running at a double-digit pace, and Gothenburg and Malmö are also performing strongly. We are constantly advancing our position and are top-ranked in several areas of expertise. We now expect/hope to surpass the one‑billion mark for the full year.

But growth is not everything. Our main focus is, as always, on long-term sustainability—on continuous development and improvement— and we are delivering on that. We now have clear evidence that our major, ongoing AI initiative provides concrete benefits for our clients. Implementation has exceeded expectations: a majority of Setterwalls’ lawyers use the AI tools daily, and almost all use them weekly. Our latest survey shows this is driving both higher efficiency and improved quality in client engagements. It is proof that our investments make a difference and that technology, used correctly, strengthens both our business and our advice.

During the year, we have also welcomed several new colleagues to Setterwalls. Today we are 340 people in total, all working to shape the future of law. Having so many engaged, business-minded, and responsible colleagues who together foster a culture that combine high performance with a strong sense of community is something I am personally very proud of.

Thank you for this year—and welcome, 2026!

Finally, we would like to extend a warm thank you to our clients for the trust you place in us as your legal partner. Thank you for this year. We look forward to an eventful 2026, when we can continue with our most important task: supporting you in growing and developing.

As we approach 2026, we do so with optimism and confidence. When the world shifts, we stand firm, with our course clearly charted —ready to continue delivering first-class advice to our clients.

Together, we strengthen and safeguard Swedish business.

Three observations for 2026

Three areas that Setterwalls’ lawyers believe will shape the conversation about business law in 2026:

• Labour law will tighten and modernize. The Pay Transparency Directive and new requirements for data‑driven HR call for clearer work processes and greater transparency in pay structures.
• Administrative law steps into the spotlight. Companies demand predictability and clarity in administrative decisions. As public authorities’ limited resources increasingly compel businesses to turn to administrative law, Swedish companies face major legal challenges.
• AI continues to shape business law—and we have only seen the beginning. The technology is accelerating and, with it, new regulations, particularly in fintech, labour law and data protection. Legal issues are becoming more business‑critical, and complexity is increasing.

Insights from the year gone by

Feel free to dive into some of the year’s most interesting articles and reportsby our knowledgeable lawyers:

• Fintech Report 2025: Our annual analysis provides an in‑depth look at the most current regulatory issues and trends for Swedish fintech companies. This year’s report reflects an industry sensing a fresh start, with particular focus on efforts to reduce the regulatory burden within the EU, as well as stricter requirements in cybersecurity and AI.
• Life Sciences Report: Twice a year, our experts share their views on current Life Sciences issues. This year weaddressed, among other things, updates to ethical rules, labelling of foods for special medical purposes, and Sweden’s adaptations to the AI Act. Read the May report here and the November report here.
• Regulatory news in maritime: Spring brought several major regulatory developments for Swedish shipping. Our lawyers review the most important changes and what they could mean for shipping companies, financiers and other industry stakeholders.
• Stricter rules against environmental crime: Our environmental law experts provide an overview of the government’s proposal to reform environmental crime legislation, with tougher penalties, a stronger focus on organized crime, and greater powers for supervisory authorities. At the same time, more extensive suitability requirements are introduced for companies engaged in environmentally hazardous activities, which may affect future permitting and transaction processes.
• FDI legislation: Swedish FDI legislation has rapidly become one of the most decisive factors in Nordic transaction processes. Here, we at Setterwalls provide an up‑to‑date picture of how the framework functions almost two years after its introduction, and what it means for investors going forward.