Legal technology - no more excuses

With the role of general counsel transforming from risk mitigator to commercial strategy facilitator, how can legal technology transform productivity for both the in-house team and the wider business?

You’ve got that nagging feeling in the back of your mind: you know the legal technology is out there to make your work more efficient, but the steps required to realise those benefits feel stiflingly vast.

That shiny new contract management software sounds like it will revolutionise the way your team operates, but when you’re already over-stretched, finding the time to effectively implement a new solution is difficult.

In today's economic landscape where teams are under pressure to do more with less to remain competitive, the implementation of legal technology has the potential to be a productivity game-changer.

But with new and improved technological offerings being developed all the time, how can legal teams accommodate the necessary time, resource and focus required to select and implement the right legal tech while still balancing the day-to-day workload?

The legal industry has a narrow tolerance for experimentation: fear of not choosing "the right" tech, fear of failure, can be an enormous barrier to legal teams enjoying the benefits new suites of legal technology on offer. So how can legal tech transformation be done right? How do you even get started? What if your competitors are already ahead?

With the recent boom of AI, the technology industry is evolving at pace, with many businesses breathlessly leveraging these changes to keep up.

At its core, the legal industry is deeply rooted in tradition, which often makes it resistant to risk and change.

However, times are changing. General counsels now play a crucial role in shaping corporate strategy; implementing the right innovative legal technology can enhance the efficiency of the in-house legal team and, by collaborating with other departments, benefit the entire business.

Budget

Although 72% of in-house lawyers recognise the need to use technology to simplify workflow, only 32% have increased their legal technology budget.

How can we justify the spend during economic uncertainty?

Resistance to Change

Broadly, the legal profession is often characterised by its cautious approach, which frequently leads to a resistance to change. Changing established ways of working and embracing new technologies are manifestly difficult: Why change what we’ve always done?

Choice Paradox

Already a buoyant industry, the legal technology market was valued at USD 29.54 billion in 2023, and is projected to grow to USD 63.9 billion by 2032. While this increased investment is beneficial to the sector as a whole, the resulting increase in providers to consider not only necessitates more time and effort in this process, but could also lead to dissatisfaction after the fact. How can GCs make the right technology choice when there are so many options to assess?

Skills Gaps

Even with modern tools that are designed for ease of use, the adoption of new legal technologies often requires adequate training.

But what happens if the in-house team lacks the technical expertise to operate a new system effectively?

Is It Worth It?

The barriers to delivering new technological initiatives are complex and broadly experienced, with 47% of legal teams struggling to integrate new legal technology. Resistance to change can be rooted in concerns over disrupting established processes or a fear that legal technology is too difficult to use without extensive training. Budget constraints are another major barrier, with a staggering two-thirds of legal teams citing financial limitations and concerns over ROI as a primary barrier to technology transformation.

However, for teams already using legal technology, the rewards are clear, with 78% of GCs enjoying measurable benefits, with far-reaching improvements realised in areas from uniformity to cost-reduction. In an industry where time is the most valuable commodity, perhaps the most significant value that legal technology can add is in timesaving: the right legal technology allows lawyers to complete tasks ranging from routine to more complex activities more quickly and with greater efficiency. Workflow can be made more efficient through a centralised document management tools.

Significantly, by investing in the right legal technology, the resulting efficiencies gained can allow in-house teams to spend more time on projects that have a greater impact on the wider commercial goals of the business.

Technological complaisance is a risk that not only affects the in-house team; where market competitors are investing in LawTech solutions, legal teams who do not may see a trickle-down effect that negatively impacts a business’s competitive advantage.

As an example, crucial work relating to regulatory changes, an ever-increasing challenge to in-house teams, can be transformed through the use of the right legal technologies. Regulatory compliance and legal document management technologies not only open the door to marked timesaving for lawyers, LawTechUK estimates that greater use of this technology could bring legal service providers productivity gains worth up to £1.7bn annually.

Making the Right Choice

Although not as mature an industry as financial technology, legal technology is seeing rapid growth, attracting huge increases in investment particularly in the US. While a range of options can be advantageous, the vast range of choices in the market can hinder progress. It is a significant challenge for a General Counsel to thoroughly evaluate the many legal technological tools available while managing daily responsibilities.

Theoretically, procurement and implementation of new legal technology has never been more simple; Cloud solutions demand far less hand-on involvement from an internal business’ digital team. With that said, the majority of GCs who responded to legal500’s recent survey stated that they would prioritise ease of integration with existing software over a solution that meets the legal team’s specific needs. This can result in legacy systems comprising outdated technology being retained at the expense of efficiency and optimised productivity. For in-house teams to fully realise the benefits of a LawTech transformation exercise, GCs should approach a review with clearly defined goals and a structured roadmap.

Developing Skills

As the digital world continues to develop at an astonishing rate, the digital skills gap widens, causing many to feel inadequately prepared to make big-impact technological changes. While making best-use of technology investment is dependent on several factors, understanding and comprehensive feature adoption is arguably the most important. For example, are you using the full capabilities of your Microsoft365 investment?

So how can GCs get off the starting blocks in choosing the right technology with all these challenges in place? Alongside the increasing number of LawTech options, there is also an increasing number of support and educational platforms. From legal technology events, peer-to-peer networking opportunities, or working with your trusted legal service providers, there are fantastic resources and opportunities available to develop your skills and better understand the market.

It was important for me to work with people that truly understood what Scott Bader wanted and needed for its solution. They took the time to understand our requirements and carefully listened to the how and why we dealt with our contracts across our business. The implementation went smoothly and the support for my commercial colleagues was both clear and concise.

We have now a simple to use tool to manage our contracts that is as easily used by commercial colleagues as the legal team.”

Conclusion

The adoption of legal technology presents a significant opportunity for legal teams to enhance efficiency and productivity, despite the challenges of budget constraints, resistance to change, and skills gaps. The legal industry, traditionally resistant to change, must embrace technological advancements to remain competitive. By carefully selecting and implementing the right legal tech, legal teams can streamline workflows, save time, and focus on more impactful projects.

In-house legal teams often struggle to find the time to thoroughly gather requirements, identify suitable solutions, and see implementation projects through to completion. The day-to-day demands of legal work can make it difficult to allocate the necessary time and resources for these tasks. Additionally, implementation projects may not always go smoothly; unforeseen hurdles and challenges can arise, requiring ongoing effort and dedication to keep the project on track. Continuous effort is crucial to ensure that the benefits of legal technology are fully realised and that the project does not falter midway.

The support of legal tech consultancies can bridge skills gaps and provide the necessary resource and expertise for successful implementation. Ultimately, investing in legal technology is not just about keeping up with competitors, but about making the legal function to work better for the business, and the people within it.