In 2022, a Gartner report quoted, “By 2024, legal departments will replace 20% of generalist lawyers with nonlawyer staff”.
Change management is a prism. To walk on the right path you need the right strategy to unlock the lock. The key to success is to first identify specific issues that can be solved with automation.
In the past few years, there have been significant changes in the way the legal industry operates. One of the biggest changes is the introduction of legal technology. Law tech helps improve and streamline legal processes, ranging from document automation to artificial intelligence (AI) tools for legal research.
The economic deception has introduced new challenges as big law clients got shifted to law firms, charging less, giving mid-size firms an open hand approaching potential clients.
Although small law firms have increased demand for services, they are still unable to get new clients onboard, due to a lack of technological advancements to cater to growing clientele and demands. In 2023, it’s crucial for big & small law firms to adapt to law tech.
Here are some of the reasons why:
Efficiency
One of the most significant benefits of legal tech is its ability to increase efficiency. For example, document automation can significantly reduce the time and effort required to draft and review legal documents. This means that lawyers can spend more time on complex and vital aspects of their work, rather than on repetitive tasks. By adopting legal tech, law firms can improve their efficiency and productivity, which can result in increased profitability.
Improved Client Experience
Clients expect a certain level of service from their lawyers, and law tech can help provide that level of service. By using client portals and document-sharing platforms, law firms can provide transparent and collaborative experience to their clients. Additionally, legal technology tools can help lawyers to manage their clients and cases better with improved communication and higher stability. This, in turn, can result in higher client satisfaction and more business opportunities.
Competitive Advantage
Legal technology is not yet widely adopted in managing law firms, however, firms with an early adoption will have a significant advantage. Using legal tech, firms can differentiate themselves from their competitors and position themselves as modern, innovative, and efficient. Additionally, law tech can help firms take on larger or more complex cases, resulting in increased revenue.
Cost Savings
Formerly, legal work was often a labor-intensive process, requiring time and effort from lawyers and support staff. However, law tech can help reduce the costs associated with legal operations. For example, AI tools can assist with legal research, reducing the amount of time required to complete research tasks. Additionally, document automation can reduce the need for administrative staff, which can result in higher cost savings.
Compliance
Finally, legal tech can help firms ensure compliance with legal and regulatory requirements. For example, tools for managing data privacy and security can help firms to comply with data protection laws. Additionally, law tech can help firms manage and track their client’s cases, ensuring that all necessary steps are taken and deadlines are met.
Legal tech is an essential part of the modern legal industry. Adapting tech, law firms can increase efficiency, improve client experience, save costs, gain a competitive advantage, and ensure regulatory compliance. Law firms that fail to adapt law tech risk falling behind their competitors, losing clients, and missing out on revenue-generating opportunities. Therefore, law firms should prioritize the adoption of legal tech in 2023 and beyond.