The legal industry has been a closed-circle profession with few advancements accepted or instituted. The change was sluggish. Profits were high. However, along came 2020 as the single greatest catalyst to disruptive digital transformation. Now we see law firms cast into a race to become the most technologically fluent provider in the market.
Cloud adoption, AI, machine learning, automation, and HR redundancies are emerging as technology operates as a ruthless taskmaster of efficiency. Profitability is the driving force, and Gartner believes AI alone will generate $2.9 trillion in value to businesses across the US.
Technology is playing a major part as an aid,, but it is even beginning to be a legal product of its own. Here is where we see the biggest impacts law firms can derive.
1. Enhanced Efficiency
Forget about the legal industry for a moment. Think about the clients and the societies they occupy. Everything is digitized beyond belief,, and it changes consumer expectations and behaviors. If a client experiences lag or delays in their online shopping experience, they go elsewhere. For decades, lawyers could escape these cultural changes, but not anymore.
Like it or lump it, efficiency and expediency are now pillars of competition in the legal industry. Firms using contract analysis software, automated client intake forms, digital law libraries, and other AI have a far quicker response rate with fewer overheads.
2. Demand for Transparency & Cost Predictability
E-commerce and the need for trust have increased the demand for testimonials, reviews, and overall transparency, and this has permeated law across the board.
Digital billing is the biggest emblem of client-driven transparency. Clients used to be blocked with ambiguous descriptions for billable hours and services. There was little opportunity to scrutinize costs or measure the value-add by lawyers. Frankly, many felt they were being ripped.
Installing time tracking and clear, digital billing helps to remove the air of doubt and distrust that has festered for too long. To restore faith after the numerous high-profile lawyer failures, transparency and clarity are key.
3. Cybersecurity
In May 2021, the entire health service of Ireland was brought to its knees by a cyberattack. Cybersecurity hacks happen every 11 seconds, and law firms and attorneys are the most attractive victims.
Firms are turning to a blend of different solutions. AON Risk Services saw a 60% increase in cyber-insurance, with another 20% purchasing specific insurance elsewhere. However, the best answer seems counterintuitive - more technology.
Holistic cybersecurity providers offer protective technology, standard operating procedures, and integrations to reduce and eliminate the gaps between individual security packages. With lawyers working remote and digital service delivery becoming a priority, firms are more exposed than ever and insurance doesn't cover everything.
4. Practice Management
Remote work pushed most of the legal sector into independent siloed work, causing fragmented collaborations. Client needs were slipping through the cracks, and it became increasingly difficult to maintain standards and accountability. In truth, it highlighted a problem that has long existed but has already been solved by tech.
Practice management tools designed for law firms drastically improve oversight control for law firm leadership. Realistically, that should come as the minimum expectation. Firm management platforms go far beyond progress dashboards and case updates. They understand that the law is going to continue to be overhauled by technology.
Forward-thinking platforms are designed to welcome as many compatible plug-in applications as you can think of. Automated intake forms, CRM, billing, file storage, legal research are among the many extensions available in market-leading management tools.
If a firm management software is on the horizon, making sure it works with the rest of your tech stack is only going to grow in importance.
5. Technology as a Legal Product
The fees and rates of ambiguous legal services have given rise to clients looking elsewhere for help. Tools like Nolo equip citizens with self-serve, DIY legal products. These products include technology to generate wills, estate planning, company formation, and more. Technology like DoNotPay markets itself as a robot lawyer, initially designed to fight parking tickets. It has so far overturned $4 million in tickets.
Perhaps the most advanced technological legal product is predictive analytics AI. PA assesses cases based on the variables provided and previous case law. It then makes a prediction on the outcome of a trial, inclusive of settlement figures. It may render the lawyer obsolete,, but it is also undeniable because clients are saved by exceptional trial and lawyer fees.
In Conclusion
Technology in the legal profession is challenging the industry of law on all fronts. Accountability, transparency, and efficiency have never been more important. Attorney tasks are being replaced by augmenting AI and new software. If the technology isn't supplementing abilities or adding value, it is directly replacing them.
The growing concern is that 100,000+ legal jobs will be lost thanks to technology,, but that doesn't have to be the case. Adopting technology early helps to speed up the time-consuming tasks, leaving more time for new clients. If firms get ahead of the technology curve, they add more service value, become more attractive due to the cost and time-saving benefits, and enjoy streamlined profitability.
Technology is not going anywhere, so it is up to the legal profession to fully leverage it to gain competitive advantages.
* This is a contributed article and this content does not necessarily represent the views of sciencetimes.com
