5 Trends of Digital Transformation in Legal

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The legal sector is undergoing unprecedented change, and technology is the juggernaut pushing it forward. This change comes in many forms. Technology today gives rise to virtual firms, and automation tools which are going to change the very essence of how law firms work.

Legal firms are now embracing the digital future and are finding more innovative ways to manage profitability and the performance of their people. Even though it seems like the pace and extent with which the legal practices are commissioning change is decreasing, 80% of lawyers have a resounding appetite for it. Let’s have a look at the digital trends which are shaping the legal firms of tomorrow.

5 Trends of Digital Transformation in Legal

1. ML, automation, and AI

ML, automation, and AI

The benefits of collaborative technology are already being leveraged, but it is the cognitive technology and Machine Learning (ML) that has the capability to change every fabric of modern legal work. AI can detect and use patterns in data to automate human-based tasks like document filing. High-level  bots can eliminate the need for human intervention in time-intensive tasks like tax returns and form filling.

While many commentators have warned against AI, the real opportunity is to free up human resources for greater corporate endeavors and re-skill employees to drive more billable hours.

2. Greater workforce mobility

The pervasiveness of mobile devices in the workplace has helped first to realize the financial benefits of an increasingly mobile workforce. Thereby enabling improved service for clients 24/7, increasing workflow efficiency, and reducing overheads as the requirement for large statement offices decreases.

The need to work smarter is also driven by changing employee expectations and demands. Lawyer’s expectations of their careers have also shifted as they now realize how technology can help improve their working day, and the arrival of millennials into the workplace supports this further as they expect agility, mobility, and digital efficiency as a minimum. Legal firms that strive to attract and retain the best talent must recognize the necessity of working smarter in a digital age.

3. Data-led decisions

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As legal firms are investing in new digital solutions, working practices, and machine learning, as there is an opportunity for lawyers in terms of operational costs, and process efficiency.

Through enhanced auditing and performance tracking law firms can truly leverage their operational efficiencies, working practices, and use that information to create more strategic decision-making. More conventional use of data can also support legal teams as they look to deploy alternative pricing models to respond to client’s increasing expectations for prices and cost certainty.

4. Heightened competition

The legal sector market is growing tremendously. The balance between clients and lawyers has shifted. Clients are better informed, more demanding, less brand loyal, and cost-conscious. The focus is on accessibility, efficiency, and feeling heard.

When the digital tools and technology are harnessed properly, the legal services can earn the advantage they need to barge the competition out of the way and respond to changing market dynamics. As legal practices recognize the need to overhaul workflows, improve efficiency, and better understand clients, they stand to thrive in an increasingly crowded marketplace.

5. Governmental, judiciary, and regulatory pressure

Governmental, judiciary, and regulatory pressure

The move to a paperless office has been ongoing for almost a decade. However, legal firms now have to consider the complex levels of regulation they will face in the wake of changing government regulations. The complexity of this acts as a powerful driver for change and innovation, as firms try to make sense of the regulatory changes that will impact their operations.

Conclusion

Technology has changed consumer behaviors beyond all recognition. Legal practices must look beyond making incremental digital improvements and instead embrace the opportunity for widespread organizational change and innovation.

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