To say that the legal industry is slow to adopt new technologies is to perpetuate a stereotype. After all, lawyers are people living in 2024, using the same technology adopted by the wider population. Legal professionals are no foes to AI, blockchain, and other tech buzzwords.
Still, an image of a lawyer buried in paperwork is easy to conjure up. Even more so, an attorney representing a client in court, an establishment notoriously slow in the digitization process.
Therefore, the question of tech adoption in law remains open. At what rate does the legal industry adopt new technologies? And what are the legal tech trends to look out for in 2024 and beyond? In this article, we’re going to find the answers.
Keep reading to learn about:
- Benefits of legal technology
- Tech adoption rates across different sectors of law
- Types of legal tech used by law firms
Let’s jump right in.
Benefits of legal technology
There’s a lot to gain from adopting new technologies in the legal field. Below are just some of the benefits of digitization of the law office.
1. Reduces human error
All human-led processes are prone to error. By automating some of these processes with legal software, the rate of human error can be reduced to the minimum. Especially taking into account the sheer volume of documentation the legal process involves and the subsequent potential for mistakes.
Something as simple as a CRM can help lawyers centralize their client data and ensure that all communication is streamlined and all client and matter-related data is in order.
2. Speeds up processes
Legal tech is an excellent way to speed up paperwork processing, document submission, and other time-consuming, deadline-dependent tasks. Statista reports that 75% of attorneys spend 20 or more hours per week on non-client facing admin tasks like paperwork.
Legal tech like document and email automation tools help attorneys reduce the share of non-client facing work, serve their clients faster, and provide essential legal aid in a timely manner.
3. Promotes transparency
Legal tech makes the entire legal process more transparent and accessible for clients. Something as simple as a client portal, but in the context of a legal practice, promotes accessibility and helps improve client engagement.
Mobile-friendly solutions like client apps make it even easier to receive feedback or seek legal aid in the first place.
4. Improves profitability
Law firms are profit-driven enterprises. As such, they benefit from manual process automation and more efficient allocation of valuable resources. Legal technology helps law firms grow Revenue Per Lawyer and Profit Per Partner, ensuring profitability through better usage of legal resources.
Tech adoption across law sectors
When it comes to different areas of legal practice, some are faster to adopt new technologies than others. E.g. intellectual property law, business & compliance, and real estate law are driven by market demands and involve generally tech-savvy parties.
On the other hand, immigration law and elder law sectors don’t get the same amount of funding. Tech adoption across these jurisdictions will always be stifled compared to profit-driven institutions.
Even looking at tech adoption across different law firm sizes, we can see the differences in the rate of digitization.
- Solo practitioners
- Small firms
- Mid-sized & large firms
- Big law
Clio, a leading provider of legal software, reports that solo practitioners of law are more likely to use AI in their practices. 40% of solos and 35% of small law firms had plans to adopt AI in the next 6 months, compared to just 24% of larger law firms.
According to Clio, the focus on data for performance tracking and profitability management is among the trends in legal technology. To remain profitable, law firms have no choice but to keep up with the overall digitalization trend.
Types of legal tech used by law firms
Let’s briefly review the types of legal software used by law firms of all sizes.
Practice management software
It’s hard to imagine a successful law firm that doesn’t use some kind of legal practice management software. It powers unlimited document storage, e-signature, e-filing, client intake, customer relationship management, and so much more.
Comprehensive legal practice management software can provide end-to-end solutions for managing a law firm. Even though CRMs were not designed with law offices in mind, they fit perfectly into the present-day standards of client management, helping law firms get new business and retain clients.
Legal timekeeping software
Legal professionals have traditionally billed clients on an hourly basis, with minimum billing increments getting as small as 3 and 6 minutes. Legal timekeeping is a delicate art of managing time while staying focused on client matters and ensuring accurate and fair billing.
Automation is indispensable when it comes to time tracking for busy legal professionals. E.g. in contrast to distracting manual timers, a tool like Memtime acts as a second memory for lawyers. It works in the background and helps everyone from solo practitioners to big law firms keep accurate track of billable hours and remain profitable.
Legal accounting software
Closely related to legal timekeeping and billing, legal accounting calls for lawyer-friendly bookkeeping technology that helps law firms stay compliant with rules and regulations specific to the legal field and management of sensitive client data.
Trust accounting compliance and handling client funds gets a lot easier with tech built for legal professionals. Instead of manually logging transactions and chasing receipts, attorneys can enjoy automatic transaction management and centralized bookkeeping.
Final thoughts
Tech adoption rates vary across different sectors of law but the overall trend for 2024 and beyond is ever-growing automation and digitization of the legal practice. Legal tech comes with indisputable benefits while also posing a challenge to law firms, especially larger ones, to roll out new technology, provide adequate onboarding, and ensure compliance across the vast staff.
As more and better tools emerge for automation of previously manual processes, legal professionals have a wide selection of tech to enhance their practices and collaborate with clients. In the coming years, we’re looking at near-complete digitization of the legal field with improved accuracy and speed.
