Subscribe to our newsletter and stay informed

Check out our list of top companies

Check out our carefully compiled lists of the most relevant and impactful companies within their fields.

Check out our list of top unicorns

Read and learn about the biggest companies that various countries have produced, how they made it, and what the future looks like for them.

Top 10 Legal Technology Trends You Need to Know

Legal technology investment has increased significantly, ranging from digital marketing to legal automation technology
June 13, 2024

Law companies may use specialized CRM software to securely store data, manage cases, and acquire new insights. Following developing legal trends can help you gain an advantage over your competitors.

Introduction to legal tech

Legal technology refers to the use of software, apps, and general technology to support and serve law firms and other legal organizations. Emerging technologies such as blockchain and artificial intelligence can be used by legal practitioners to improve their efficiency.

Legal technology is more commonly associated with software, such as programs, than with hardware, such as computers. Generic business technology is widely applicable across sectors. Legal technology, on the other hand, is industry-specific and meticulously customized to what legal practitioners perform daily and their projected needs.

Law companies that adopt the newest developments in legal technology will see greater efficiency. This efficiency is attributed to elements such as task automation, which reduces staff time spent on repetitive work, enhanced exposure through digital marketing, and user-friendly case management software.

Why is legal technology important?

It may be cliché to state, "COVID-19 changed how the legal industry does business." However, the legal business has traditionally been sluggish to embrace the digital revolution. To stay afloat during the epidemic, law firms had to change their business models swiftly, frequently faster than typical enterprises.

Firms that have invested in legal technology are finding that the solutions they have selected continue to provide value. Some benefits include:

  • Reduced costs by eliminating paper and postage.
  • Increased productivity by eliminating manual review tasks, allowing attorneys to focus on client work and revenue-generating projects.
  • Improved compliance by easily documenting within the technology to meet security, privacy, and professional compliance requirements.
  • Expanded opportunities by reaching out to new clients who were previously too far away to meet in person.

These benefits are equally applicable to in-house legal departments and law firms. For example, many corporate legal departments collaborate with law firms from several jurisdictions. An organization with worldwide headquarters needs businesses to represent it in each country. As a company, you may broaden your reach by delivering services to businesses wherever they are while also maximizing attorney billable hours.

10 legal technology trends

Artificial intelligence

Artificial intelligence (AI) and automation are frequently used interchangeably, yet they are slightly different.

Whereas automation usually refers to technology replacing human labor to execute predictable, repetitive tasks, AI replaces more sophisticated interpersonal tasks such as problem-solving, perception, and human planning. AI supports human intellect in the same way that your project management triangle does.

Today's artificial intelligence systems can continue to learn. Machine learning, a subset of artificial intelligence, can:

  • process massive amounts of text and audio communications;
  • identify patterns;
  • perform remarkable feats of predictive modeling.

In addition to locating privileged papers, AI may evaluate contracts to look for missing phrases, for example. AI helps lawyers extract significant insights from data, revealing vital evidence for case development and litigation strategy.

Technology is evolving, and individuals are still figuring out how to apply machine learning in the field. AI is revolutionizing B2B marketing by enabling businesses to enhance their consumer experiences. Legal businesses may also use AI to improve customer experiences, assist legal firms with investigations, and identify red flags and anomalies to reduce risks.

Cloud-based databases

This is another legal technology development that has grown in importance during the present lockdown or work-from-home period. Cloud-based databases function by storing data utilizing off-premises information technology services rather than on-site storage facilities.

This means the data may be accessed from anywhere. The data comprises legal papers, financial records, and client information, among other things. Lawyers can access all of the same information remotely as they do at work. This is critical for company continuity, since attorneys may continue to operate remotely if they cannot visit an office. As a result, cloud-based databases are a vital tool for making your company more flexible and adaptive in an unpredictable global environment.

VoIP technologies

Voice over Internet Protocol (VoIP) technology has emerged as a significant trend in the legal industry, revolutionizing how law firms communicate and manage their operations. A well-chosen VoIP provider, like MightyCall, enables voice and multimedia communication over the Internet, offering a cost-effective and versatile alternative to traditional phone systems. Here's a closer look at how VoIP technology is transforming the legal landscape:

  • cost-efficiency;
  • mobility and flexibility;
  • enhanced collaboration;
  • call management and recording;
  • security and compliance;
  • integration with legal software;
  • client communication and service.

Increase in cybersecurity focus

As technology evolves, the significance of cybersecurity and data protection in the legal profession cannot be understated.

Law companies manage sensitive customer information, making them attractive targets for cyberattacks. Law companies must use strong cyber security measures, such as data encryption, multi-factor authentication, and safe data storage. Using Eset or any other proven software will help to protect your digital life.

Attorney billing software vendors stress data security, ensuring that sensitive data and financial information are kept safe. By implementing safe software solutions, law companies may reduce the risk of data breaches and assure regulatory compliance.

Automated workflows

Previously, new workers had to study, assimilate, and virtually remember whole corporate legal playbooks to learn the company's language and bargaining preferences. While clause libraries and templates were useful, they still needed to know where to seek solutions to their queries. Today, teams using automated processes rely on technology to perform the hard lifting. All the information they require to make critical decisions is automatically collected for them, with the answers and the opportunity to make adjustments only a few clicks away.

  • Efficiency: Automation can cut training and onboarding expenditures by 99%.
  • Productivity: Technology can help staff handle compliance concerns and adjustments.
  • Performance: Technology protects institutional knowledge even when important employees leave.

Automated contract review

The contractual procedure is most time-consuming during its review and negotiations. A junior-level attorney must carefully review each line of a new draft, compare it to the company's desired legal views, and meticulously adopt best practices. Once this preliminary sweep is completed, senior legal counsel must review it again before it is sent to the opposing party – at which point a document may bounce back and forth multiple times.

Manual reviews might take 30 days or longer to complete, severely delaying the entire sales cycle. Smart legal departments that use contract automation can accomplish the first pass in five minutes and the full transaction in five days.

  • Efficiency: Manual contract evaluation is frequently a laborious and monotonous activity ideal for AI.
  • Productivity: With automation, contracts may be examined in five minutes, not five days.
  • Performance: As a consequence, legal departments can manage more contracts.

E-Discovery and digital case management

Electronic discovery, sometimes known as e-discovery, is the process of finding, gathering, and analyzing digital material for evidence in judicial matters.

E-discovery software streamlines the handling of enormous amounts of electronic data, allowing attorneys to swiftly evaluate and arrange important material. By integrating e-discovery technologies with attorney billing software, law firms may easily manage billable hours and expenditures connected with e-discovery operations.

This interface can help guarantee correct invoicing and expenditure management, lowering the likelihood of underbilling and/or missing reimbursements.

Electronic billing

Electronic billing, or e-billing, is the computerized method of billing used in law firms. This is done through software for the inspection and approval of invoices. Clients’ invoices are thus sent electronically rather than through the mail. E-billing for the legal business refers to software used to document billing information required in the sector, such as period, tasks, activities, and cost.

This bill technology is useful for small firms and large legal departments. It reduces the time lawyers have to spend on the administrative processes required in billing so that they can attend to other tasks. This reduces human errors and improves productivity.

It also significantly reduces the amount of paperwork lawyers have to do. Furthermore, e-billing software can help companies and legal departments gather specific statistics, valuable information, and analysis. For instance, it can provide useful information through trend, expense, and rate analysis.

Virtual legal assistants

In 2024, virtual legal assistants (VLAs) have become integral to the law industry, revolutionizing traditional legal practices. Powered by advanced AI and natural language processing, VLAs efficiently handle research, document analysis, and administrative tasks, freeing up lawyers to focus on complex legal work. These digital assistants offer 24/7 support, ensuring swift responses to client inquiries and enabling seamless collaboration among legal teams.

Moreover, VLAs ensure compliance with ever-changing regulations, minimizing errors and optimizing workflow. Their ability to sift through vast volumes of data expedites case preparation and enhances decision-making. As indispensable allies, VLAs have redefined productivity and precision in the legal realm.

Gartner forecasts that VLAs can handle one-quarter of internal legal department questions. This increases the operational capabilities of in-house corporate teams.

Digital marketing website investment

Law companies are adopting digital marketing, internet advertising, and website building. The American Bar Association's 2022 Legal Technology Survey indicated that the trend toward embracing digital marketing is practically ubiquitous, with just 6% of respondent law firms without a website.

A rising number of law firms use internal marketing workers to handle their websites. Law firms frequently rely on their marketing staff or outside consultants to develop website content, but the poll, which is part of the ABA TechReport 2022, found that attorneys continue to perform a significant portion of marketing work.

Over the last few years, law firm content has stayed rather steady. A lesser percentage of businesses provide consumer guidelines developed in-house and externally written legal publications. Less than half of survey respondents stated that their companies syndicated information on social media and in publications like Law360 and Bloomberg.

Hybrid work and overcoming employee resistance

Working from home has been more prevalent since the beginning of COVID-19. An adjusted work schedule is well received since most lawyers and many workers in a law firm would like to work from home sometimes. Thus, regardless of the numerous efforts made by businesses to lure their staff back to physical offices and expensive annual and monthly service leases, many companies have disused the five standard days a week model and have shifted to a hybrid model.

This change in work culture has profound implications for the profession of law, first and foremost in the area of personnel attraction and recruitment. To keep up with the competition, law firms will need to rethink existing employment models because these new types of employees consider work-life balance to be of significant importance and list flexibility as a priority. This might lead to an almost permanent change in the layout and size of offices in the legal field, affecting the footprints of legal businesses.

Legal tech revolution: Shaping the future of law

The recommended legal technology should be adopted to ensure that legal practitioners align with modern trends for improved efficiency. Adopting and implementing technological breakthroughs like artificial intelligence, blockchain, and cloud computing make it easy to work faster, do more with less, and offer excellent services to clients.

Therefore, when utilized properly, these technologies allow law firms to stand out in the market, operate with lower costs, and offer their customers the best results possible. All these are future trends that the legal industry is bound to adopt fully as it increasingly goes digital; hence, it will be vital for legal professionals to embrace these trends. Know the facts, be dynamic, and respond positively to the impact of legal technology.

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram