Lyle Gravatt, Managing Partner, Raleigh Office, Michael Best

Lyle Gravatt, managing partner of the Raleigh office at Michael Best, spoke with Invest: about using cutting-edge tools to create customized services for clients. “We identify and align deliverables with our clients’ business goals and trajectories, so they have more than just a work product; they have a partner,” Gravatt added.

How has the current wave of technological innovation and regulatory shifts shaped your firm’s service offerings and client needs?

We’ve experienced significant growth in the Triangle in technology, life science, and healthcare. Businesses are incorporating AI into their processes and deliverables, and it’s starting to have a significant impact on the labor market, operational costs, and service offerings. There are also regulatory changes and economic impacts that follow any new administration, and this one has been particularly active with regulatory changes, the tariff regime, and other actions affecting supply chains. Market volatility is a challenge for businesses and an opportunity for law firms, because businesses need advice and guidance to work through challenges. 

What makes Raleigh-Durham a uniquely fertile ground for innovation and business growth, and how does Michael Best fit into that picture?

The Triangle region is a highly innovative area and is the fourth-fastest-growing venture capital investment ecosystem in the world over the last several years. It’s a business-friendly climate, especially for innovation, startups, and entrepreneurial mindsets. There is a lot of collaboration across industries and sectors in the area. A historical example is the Research Triangle Park, which is a collaboration of public and private academic institutions and continues to attract businesses from around the world. There’s also the North Carolina Biotech Center and NCSU’s Microelectronics Center, and various other initiatives in the area. We have data centers, with many big names from tech having established footprints here. 

How is increased competition reshaping legal strategies in Raleigh, and how is your firm positioning itself to stand out?

Raleigh is now considered a Tier 1 legal market, and we are attracting the attention of national and international law firms. Many of those firms have been opening regional offices in the area, increasing competition and driving local firm offices to focus on hyperspecializations and target practice groups. Innovation is required to be at the forefront. It involves more than putting a line item on the budget and investing in AI technology.

With AI, we will be able to scale data and draft contracts at a more rapid rate, but what continues to set law firms apart is the human relationship, offering proactive strategic guidance. We identify and align deliverables with our clients’ business goals and trajectories, so they have more than just a work product; they have a partner. 

What industry segments are driving growth for your firm, and where do you see the most opportunity in the near future?

Life sciences is a specific focus, and we have a strong IP team in that area, supported by deep M&A and corporate transactional experience. It’s a high-growth area for the region, particularly as AI gets incorporated into the industry. We already see more growth and R&D in collaboration with our tech partners. M&A and financing work is having a revival and is another area of strength.

How are you navigating the evolving dynamics of legal recruitment and talent retention?

There has been a sea of change across the nation relating to recruiting directly out of law school. There’s an on-campus interview process that used to start in the spring, but it’s more common to kick off as early as October or November. There’s a lot of competition and pressure on law firms to engage with students earlier in the process while providing law students the opportunity to grow, learn, and be flexible on their pathways forward.

Previously, the trend was for law students to be pigeonholed and placed into narrow practice areas during internships. We found there’s a lot of turnover because the students don’t know what they want to do. Combine this with the fact that younger associates are feeling the pressure from AI and needing to be much more tech-literate. Attracting and retaining talent relies on building a culture and workplace that focuses on individual training, education, and development inside and outside the office. Training, supporting, and fostering growth are essential elements of recruitment and retention. 

What role does community engagement play in your firm’s culture and impact?

We reward our associates up to 50 hours a year to commit to pro bono, non-billable work, which is counted toward their billable hour requirement. We dedicate part of our local budget to attorneys who serve on nonprofit boards or volunteer for community service. I serve on a nonprofit board in Raleigh that is focused on anti-slavery initiatives, and am a board member of the newly founded North Carolina Blockchain + AI Initiative. We support and encourage our attorneys to get involved in the community outside of work. 

How does Michael Best fit into the growth of the region?

In a volatile economy with a shifting paradigm in AI, the old model of a traditional, transaction-oriented law firm is transitioning to a more proactive, forward-looking, client-centric model. Instead of providing the client what we need on our terms, we meet them on their terms, provide a deliverable they find acceptable, and strategically look forward to providing guidance. It’s a multidisciplinary effort. 

What are your top priorities over the next two to three years, and how do they reflect your long-term strategy for the region?

Integrating AI effectively is a key aspect, both helping our clients and structuring our internal data to analyze effectiveness and see where trends are going. AI should improve speed, quality, and the ability to contextualize and strategize more effectively. We need to continue to recruit and grow into competitive advantages, with each office growing along with its market. 

Are there any other points you would like to add?

Clients, in our data-centric economy, are looking for more transparency and information. We need to find a way to deliver it to them in the form of real-time updates on deliverables and budgets. On the talent side, there is a delicate balance between getting people together, training, mentorship, and personal growth. Allowing the flexibility to work remotely and in the office is something law firms are working hard to find the right approach to.