Our latest report outlines some of the key ways technology has challenged legal practice. We showcase innovative ways to use technology to increase efficiency, reduce costs and give early adopters an edge over their competitors. We look at the following key topics: The first «chat robot» program, according to Above the Law, was developed in 1964, but the technology didn`t burst into the legal world until 2015 with the UK`s DoNotPay app — a chatbot designed to help people fight parking tickets. And help did it! Nowhere is this truer than the legal profession, as evidenced by the nature of the work and these staggering statistics from Apttus. How does the company know what it needs? Enter artificial intelligence. More and more legal services apps and websites are using AI to make their platforms more intuitive for the end user. The business owner answers questions. These answers, in turn, direct them to the right lawyer and a set of services. Spiffy, what? And I always go there when I`m an in-house lawyer, and I`m in the first few weeks, educating the company and basically saying that every value, every little bit of risk is associated with something that has legal touches. So, theoretically, we are the most important part of the business. I like to think that anyway.
As in most industries, there is now a real appetite among in-house lawyers, both in the UK and the US, to be able to work from home forever. Intransigence in approving hybrid work can also give a boost to fully digital law firms, allowing lawyers to work remotely as consultants. As in all industries, the lure of a better life balance is something employers struggle with at all levels. But when it comes to hiring specialized legal and technical staff, it`s something that just won`t go away. According to the theory, established companies that are busy serving current customers tend to ignore new technologies and competitors – for perfectly rational reasons. Since disruptive technologies tend to be simpler and cheaper than existing products and services, their lower profit margins in emerging markets are simply not attractive to established incumbents. The incumbents therefore cede the lower segment of the market to new players and settle for the higher profits of the lower upper segment. LexisNexis® and Bloomberg Law are external online distributors of ALM`s extensive collection of current and archived versions of legal news publications. LexisNexis® and Bloomberg Law clients may access and use ALM content, including content from the National Law Journal, The American Lawyer, Legaltech News, New York Law Journal and Corporate Counsel, as well as other sources of legal information. The push could come in time, as AARP reports that 60% of Americans alone have no legal instrument to transfer their wealth after death. Of course, the issue isn`t exclusive to the US, as one of the best-known services is the UK-based Farewill, which charges a flat fee each year with (smaller) annual subscription costs that allow the user to make changes to their estate plan.
It is difficult to predict the future, but I realize that the legal world will be very different in the not too long term. Changes in the business model, as 114,000 legal jobs are expected to be automated over the next 20 years. But be careful. As Christensen warns, «never outsource the future.» Don`t give away so much business that suppliers will then be able to enter the high-end market and claim what`s left of your customer base. Plus, it`s easier to disintegrate than reassemble (think Humpty Dumpty!). Because of the consultative nature of legal work, relationships will always be important. And the UK legal technology sector has a potential market potential of £22 billion a year. That`s according to a new report from Lawtech UK.
The `Shaping the Future of Law` study shows that unmet demand from small and medium-sized enterprises (SMEs) and consumers could generate £11.4 billion in annual turnover, while saving SMEs £8.6 billion each year. In addition, law firms in the UK could achieve annual productivity gains of £1.7 billion through the use of legal technology. Legal services represent a much smaller overall market than, for example, retail, financial services or biotechnology. In the world of disruption and the gold rush promised for companies that make disruption, size matters. The legal was just far down the industry list. Its number has now increased. That`s it, readers. the key technology-related legal factors for the path we see here at Reeves Law Group.
Which ones do you think will have the greatest impact? Mute the sound in the comments below. But even that could soon change. By definition, law is an information-intensive industry. As computing power grows exponentially and legal services become unbundled and modular, legal practice becomes increasingly vulnerable to automation. Processes such as document analysis, which is used in e-discovery, show the encroachment of technology on the law. And existing applications and software are already trying to understand the vast amounts of data lawyers need to practice effectively on a daily basis. But even bigger attacks are on the horizon. The Legal Technology Directory, Legaltech Hub, is being revised to guide the information tool in a more global direction. The latest update, one of the largest since its launch in October 2020, aims to be more than just a directory, according to Nicola Shaver, founder of Legaltech Hub. It seeks to address weaknesses in legal technology procurement by educating buyers on how to map their processes by integrating research tools with additional background information. What does this theory mean for legal services? The law has long been insulated from disruptive market forces for a number of reasons, notes David B. Wilkins, Professor of Law and Faculty Director of the Center on the Legal Profession at Harvard Law School.
It has always been the most conservative discipline, both in culture and in practice. (Actually, Wilkins jokes, this is the only area where, to say something new, you have to prove that it`s already been said.) As everyday objects become «smart» and technology generally evolves under Moore`s Law of the last 20 years mentioned above, CLE technology will be as necessary for legal education as the specialty area itself. Given that much of the Public Access to Electronic Court Records (PACER) system contains outdated documents downloaded as images rather than searchable PDF files, the technology will improve lawyers` access to existing electronic records, as well as what`s to come. Yes, I think I would agree with Electra, I think personal branding is extremely important for anyone in the industry and when starting a business. I think I always had a very big problem when I was an in-house lawyer, what did people say instead of just Tom from the legal department? Can they articulate three things I did? And did I really have a personal brand? These technology disruptors save the client a significant amount of money while allowing lawyers to do business easily. For the first time in 12 years, I am convinced that we are on the verge of the promised disruption in the legal department. Not because anyone in law firms is heading there – but because venture capitalists and technology innovators have finally turned their attention to the industry. That is all changing. The opacity of the law is collapsing, thanks to the rise of in-house advocates general and a general trend towards the democratization of knowledge (see «The Global Era of More for Less,» Fall 2014).
Regulatory reform has begun, particularly in the United Kingdom and Australia. Canada announced in September 2014 that it was also considering liberalizing its legal markets. And while there are no regulatory changes in the U.S., new forms of organization like Axiom and Rocket Lawyer are emerging. Insider interviewed dozens of legal advisors, investors, lawyers, and law firm employees about people they believe are making real changes in the industry. These are some of the names that came up most often, but this list is not exhaustive. The legal industry has been largely isolated from technological changes over the past decade compared to others. Think about what e-commerce (Amazon) has done for retail, what machine learning (CRISPR) has done for biotechnology, the impact of trading platforms in financial services, SaaS and DevOps in technology, and more. Even space travel has been completely redone. All of these breakthrough technologies come from innovative entrepreneurs backed by venture capital. The Silicon Valley model has focused on one industry at a time, and the results are obvious.
How does the transformation of the legal process affect the entire company, Tom? Another pioneer will talk next time about legal disruptors. Right now, Paris is here with a look at how the metaverse and the virtual world are starting to influence the way some law firms do business. But change is undeniably coming. Imminent technological advances can bring benefits to clients in the form of lower prices and easier use of legal services, as well as better access to justice. But they can also herald equally difficult times for businesses. Below, we review the theory of disruptive innovation and look at what it can mean for legal services, look at the changes on the horizon for the legal profession – and how you can stay ahead of the curve in times of disruption.
