By Zilan Keskin
The legal industry is one of the most traditional professions that one could work within. With the current climate of technological change and progression, lawyers are at risk of not embracing these changes by utilising new legal case management software and legal billing software, which will have a fundamental impact on their role within the legal sector. Digital transformation efforts in the legal industry are maturing and there is a growing focus on now achieving practical, tangible, and measurable outcomes through legal process automation. Legal automation technology, particularly contract automation software, is gaining traction. Given the current limitations in the capabilities and longevity of machine learning-based AI tools, legal automation emerges as a crucial option for law firms undergoing digital transformation.
Automated workflow in a law firm
The move to automation systems is becoming increasingly popular and beneficial to users in all business and science sectors as new legal case management tools and legal document management software are being ever developed. 2020 was a year of accelerated adoption of automation, with figures showing that 80% of business executives fast-tracked plans to digitize work processes and deploy new technologies. This shift also includes AI in the legal industry, which is transforming case and document management in law firms. The year of 2020 highlighted the importance of automation in delivering operational savings, managing demand changes and improving resilience, which should have a reactive effect on firms this year.
Adoption of legal technology
WHAT IS AUTOMATION AND WHAT ARE THE BENEFITS?
Automation of the legal domain refers to the execution of legal tasks, workflows and processes through case management tools and lawyer productivity software. This software enables companies to streamline, automate, manage, and measure often repetitive legal tasks and augment lawyer productivity. Within the legal automation category there are three recognised pillars: business self-service, legal function enablers and systems of record.
Split image of traditional office relying heavily on papers and modern office with sleek tech gadgets
Business self-service has the purpose of scaling the legal function across the enterprise, with examples including self-service contract automation applications, automated legal workflows, contract approval workflow, expert systems and chat bots. This automation function allows for lawyers to save their time with administrative tasks, provided that appropriate compliance standards and controls are put in place. Generating contracts is traditionally a manual process that slows business operations; contract automation software can therefore reduce time pressures, where delays can have a severe impact on the outcome of client satisfaction. By having the subject matter specialist create appropriate contract templates, the speed, cost, consistency and risk mitigation of creating individual contractual agreements will be significantly improved. Corporate legal departments will subsequently have the means of tracking contract use by region, country, product and timeframe, creating a powerful tool for analysis of fundamental, corporate activities.
Legal function enablers enhance the lawyer productivity through contact assembly, e-billing for law firms, e-signatures, e-billing and negotiation portals. This allows firms, corporates and other organisations to accelerate, manage and measure legal work, thus creating greater time and cost efficiencies. Law firm accounting software and legal billing software also play a crucial role in this transformation. Systems of record are therefore, ultimately used for storage, reporting and management purposes of enterprise assets. Legal case management tools facilitate effective litigation, case management systems, and budgeting. This complementary automation activity makes the migration from one framework to another easier than with manual systems.
ADAPTING TO A CHALLENGING LEGAL MARKET
Lawyers adopting legal tech to advance in the digital era
Technology isn’t merely changing the legal industry; it is transforming the meaning of practicing law in the 21st century. Law firms should maintain a forward-thinking outlook on emerging technologies and modes of automation that can be integrated into the core infrastructures to meet fresh competitive challenges. The pressure to embrace technology primarily derives from the need to meet client demands; the wake of the 2008 financial crisis, alongside the COVID-19 pandemic has pushed clients to seek reduced legal spending and the need to increase efficiencies. If the legal sector adapts to the various pillars of automation within their practice, it can demonstrate value to clients whilst simultaneously deploying cost-effective legal technology. Tech-driven law firms will acquire and retain large corporate clients while keeping margins elevated. The global workforce is adopting automation at faster rates, making it a business imperative for the legal sector.
As we navigate the complexities of the current legal market, the adoption of automation technology should not just be looked at as an option but rather a necessity for law firms to thrive. Legal automation brings vast benefits, including enhanced efficiency, reduced costs, and improved client satisfaction. However, it also presents challenges such as the need for ongoing training and adjustments to new systems. Law firms must embrace these technologies, continually evaluate their impact, as well as adapt to meet evolving client needs. By investing in legal automation, firms will not only streamline their workflows and operations but also position themselves competitively in a rapidly changing legal landscape.
All images on this blog are generated by artificial intelligence
