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Legal AI Agents

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In February 2025, we discussed how AI agents would be the next big thing. By now, they are everywhere. In this article, we look at legal AI agents. We answer the following questions: What are legal AI agents? Why do they matter? We discuss their implementation, limitations, and risks. Finally, we look at using SharePoint and Copilot to create legal AI agents.

What are legal AI agents?

Legal AI agents are AI systems designed to perform legal tasks autonomously or semi-autonomously. They combine large language models with tools, memory, and decision-making capabilities to handle legal work. This ranges from routine tasks to complex multi-step legal reasoning.

What are they used for? Legal AI agents can search case law, statutes, and regulations. They summarize legal documents and precedents and identify relevant authorities for a given legal question. They are also capable of drafting contracts, briefs, memos, and pleadings, reviewing and redlining agreements, and extracting key clauses from large document sets. In due diligence contexts, they can scan thousands of documents, flag risks and unusual terms, and organize findings into structured reports. They can also assist with compliance by tracking regulatory changes and checking whether business practices align with applicable rules.

As the above examples show, legal AI agents are different from basic legal AI tools. A simple legal AI tool might just answer a question or summarize a document. An agent goes further. It can break a) a complex legal task into sub-tasks, b) use tools like search engines and databases autonomously, c) iterate on its own output based on intermediate results, and d) operate with minimal human intervention across multi-step workflows.

Why do they matter?

Legal work has historically been expensive, slow, and inaccessible to most people. A straightforward contract review or basic legal question can be expensive when handled by a lawyer. An AI agent can potentially do it in seconds and at a fraction of the cost. This has significant implications for access to justice: millions of people who currently navigate legal situations without any professional help could have meaningful assistance available to them.

For law firms and legal departments, the efficiency gains are substantial. Tasks like due diligence reviews that once required teams of junior associates working for weeks can be compressed into hours. This shifts the value lawyers provide away from time-intensive document processing toward higher-order judgment, strategy, and client relationships.

There is also a competitive aspect. Firms and legal teams that adopt these tools effectively will be able to handle more work, at a lower cost, and with a faster turnaround. This puts pressure on those that don’t to adapt.

Still, the stakes in legal work are high. Errors can cost people their freedom, their money, or their rights. That is why the question of how much autonomy to give these agents, and under what supervision, is one of the more consequential debates happening in the legal industry right now.

 

Implementation, limitations. and risks

How do legal AI agents get implemented? What are the limitations, and what are the risks? Supervision remains essential.

Implementation: Most legal AI agents come in two forms. The first are standalone platforms that law firms subscribe to. The second are features embedded within existing legal software, such as contract management or e-discovery tools. Implementation typically requires connecting the agent to a firm’s document management systems, legal databases, and research platforms. Larger organizations sometimes go further. They can build custom agents on top of general-purpose models and tailor them to specific practice areas or internal workflows. Data handling is a critical consideration throughout this process. Firms must carefully determine what client information can be fed into these systems while remaining compliant with their confidentiality obligations.

Limitations: The best-known type of limitation is hallucination:  AI agents can confidently produce incorrect information, including fabricated case citations that appear entirely plausible.

Beyond that, these systems also struggle with nuanced legal judgment. This is particularly the case in areas that require weighing competing values, predicting how a specific judge might rule, or navigating the unwritten norms of a particular jurisdiction or courtroom.

They also have knowledge cutoff dates, meaning they can miss recent legislative changes or newly decided cases unless connected to live legal databases. (In an earlier article, we discussed how several AIs were not aware that article 1382 of the Belgian Civil Code had been replaced).

Legal AI agents also struggle with complex multi-jurisdictional matters, where the law differs meaningfully across borders. These remain particularly difficult for current systems to handle reliably.

There also are risks that operate on several levels. For individual clients, an over-reliance on AI output without sufficient attorney review could result in bad legal advice. This could have serious consequences. For law firms, there are professional responsibility risks. Lawyers have ethical duties of competence and supervision. These don’t disappear simply because an AI did the work. Regulators are still catching up, and the rules around AI use in legal practice are evolving unevenly across jurisdictions. There is also a broader systemic risk: on the one hand, AI agents make legal services cheaper and faster. But there is a serious risk that the use of AI agents could be concentrated among well-resourced firms and clients. This would then widen rather than close the access to justice gap.

Supervision remains a must. Legal AI agents currently operate across different oversight models. These range from fully supervised (every output reviewed by a human lawyer), to human-in-the-loop (AI acts but a human approves before anything is filed), to fully autonomous (still rare in high-stakes legal work). The general consensus in the legal profession is that human oversight remains essential. This is particularly the case for anything that directly affects a client’s legal rights.

Using SharePoint and Copilot to create legal AI agents

Many law firms are using SharePoint and Copilot. So, how easy is it to set up legal AI agents with SharePoint and Copilot? Let’s find out.

SharePoint serves as the knowledge base for the agent. Law firms can store their documents, standard contracts, internal guidelines, and matter files in SharePoint. And Copilot can then be configured to draw on that repository when answering questions or generating documents. (This was discussed in our article on Retrieval Augmented Generation). The quality of the agent’s output is heavily dependent on how well the SharePoint environment is organized. Poorly structured or inconsistently named documents, e.g., will produce unreliable results.

Through Copilot Studio, law firms can build custom agents that answer questions. The replies are based on internal documents, draft routine correspondence or contracts using firm-approved precedents. The agents can also summarize lengthy agreements and assist with matter intake. They can be deployed within Teams, Outlook, or SharePoint itself. In other words, lawyers can access them within the tools they already use daily.

There are, however, some limitations and risks that must be considered in this context. The main limitation is that this approach works best for internally focused tasks using a firm’s own documents. It is not a replacement for dedicated legal research platforms connected to live case law databases. There are also meaningful governance considerations: firms need to carefully control which documents Copilot can access, since the system does not inherently distinguish between confidential client matter files and general precedents. Microsoft’s data handling and residency commitments also need to be evaluated against a firm’s specific confidentiality obligations before deployment. Are your clients OK with Microsoft accessing their information through Copilot?

Overall, it represents a relatively accessible starting point, but it requires deliberate setup and ongoing oversight to be used responsibly in a legal setting.

 

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Legal IT

An introduction to legal analytics

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These days, many law firms are using legal analytics. We briefly discussed them in the past in the article on Machine Learning. In this article, we answer the following questions: What are legal analytics? What are the prominent types of legal analytics? What are the benefits, and what are the challenges of legal analytics?

What are legal analytics?

Legal analytics refers to the use of data analysis, statistics, and technology to extract insights from legal information. In essence, it’s applying data science to the legal field. Legal analytics draws from a range of sources to identify patterns and trends. These include court records, case outcomes, judicial decisions, litigation histories, contracts, regulatory filings, and other legal documents. It enables legal professionals to predict litigation outcomes, evaluate judge behaviour, assess risk, and optimize legal operations.

Types of legal analytics

The relevant literature mentions many different types of legal analytics. These are the most prominent ones.

Litigation analytics examines court behaviour and procedural data – including judges, opposing counsel, and motion outcomes – to inform strategic case planning. A key subset, judicial analytics, focuses on individual judges’ historical rulings, such as how often they grant motions, typical damage awards, and case timelines. Law firms use these insights to gauge their chances of success in specific courts or before particular judges. This helps them tailor arguments and manage forum risk.

Contract analytics uses AI to extract structured information from large volumes of agreements. It identifies clauses, deviations, risk exposure, and compliance gaps. It is widely used in due diligence, regulatory compliance, and large-scale commercial transactions. It is often embedded in document management or contract lifecycle management systems. Corporate and transactional analytics are used more specifically in due diligence regarding Mergers and Acquisitions. They assess a target company’s litigation exposure, regulatory history, contract obligations, and legal risk profile.

Predictive analytics are used to estimate the probability of outcomes based on historical data. While predictions are never certain, they can provide useful probability ranges to assist with settlement strategy and risk management. Such tools can, e.g., estimate the likelihood that a motion to dismiss will succeed before a specific judge, or it can project a likely damages range in a given type of commercial dispute.

Another category of legal analytics focuses on operational efficiency. It is used for competitive intelligence and firm management. Attorney and firm analytics can profile opposing counsel or potential hires based on their track record. This includes things like case history, success rates, favoured arguments, and courtroom behaviour, which is useful for lateral hiring decisions. Beyond this, firms also analyse billing patterns, matter duration, profitability by practice area, and client retention trends, reflecting broader developments in legal operations and law firm management software.

Regulatory and compliance analytics monitor regulatory activity, enforcement actions, and agency decisions. It helps organizations understand compliance risk and anticipate how regulators might act in a given area.

Intellectual property analytics track patent filings, litigation trends, licensing activity, and the behaviour of patent assertion entities (also known as “patent trolls”). These analytics are widely used in tech and pharma industries.

Apart from these, there are many other types, like docket and case management analytics, legal spend and operations analytics (often as part of law firm analytics), descriptive, diagnostic, and prescriptive legal analytics, etc.

What are the benefits?

The articles mentioned below list several benefits. Here are the most common ones.

Better decision-making: Perhaps the most fundamental benefit of legal analytics is replacing gut instinct with evidence. Legal analytics help lawyers move beyond intuition and anecdote to assess procedural risks more accurately. This allows lawyers to better evaluate whether to file, settle, move for summary judgment, or adjust procedural tactics. In other words, legal analytics allows for more informed choices about litigation strategy, settlement timing, forum selection, and case valuation.

Improved outcomes: By analysing thousands of similar cases, legal analytics helps lawyers and clients form realistic expectations about how a case is likely to resolve. This reduces surprises, manages client expectations, and helps litigation funders and insurers price risk more accurately.

Improved risk management: Clients expect data-driven risk assessments, and legal analytics delivers exactly that. It can work proactively, flagging risks before they escalate: unusual contract clauses, emerging enforcement trends, or jurisdiction-specific litigation exposure. Even a rough probability range helps clients make smarter business decisions.

Faster due diligence: Contract analytics can process large volumes of agreements rapidly. They can identify non-standard clauses, risk exposure, and compliance gaps. In transactions, this accelerates due diligence timelines significantly. The result is faster deal timelines, lower diligence costs, and a reduced likelihood of overlooked liabilities.

Competitive intelligence and differentiation: Legal analytics also provides a meaningful competitive edge. It allows lawyers to understand how opposing counsel argues, how a judge tends to rule, or how a particular court handles certain claim types. This gives legal teams strategic intelligence that was historically only available to lawyers with decades of local experience. This is particularly attractive to sophisticated corporate clients already accustomed to data analytics in finance, operations, and strategy. In some markets, the ability to provide data-backed insight is becoming a baseline expectation rather than a distinguishing luxury.

Cost efficiency: Legal analytics helps in-house legal departments benchmark outside counsel fees, identify billing inefficiencies, and forecast matter costs more reliably. This makes legal budgets more predictable and easier to justify to finance teams.

Supporting legal innovation: More broadly, legal analytics is driving a cultural shift in the legal profession toward greater transparency, accountability, and data literacy. It is pushing law firms and legal departments to operate more like modern businesses.

What are the challenges?

While the benefits are promising, legal analytics still faces many challenges.

Data quality and completeness: Legal analytics is only as reliable as the data it draws on, and that data is frequently incomplete. Court records vary enormously in how they are formatted and maintained across jurisdictions, many decisions are never published, and older records may not be digitised at all. Settlement data – often crucial for realistic outcome assessment – is typically confidential and therefore absent from public datasets. Available court data can differ significantly across jurisdictions and countries. Gaps in the data inevitably produce blind spots in the analysis.

Privacy and confidentiality concerns: Legal data is highly sensitive, and its use for analytics purposes raises serious privacy and confidentiality concerns. Feeding client communications, billing records, or contract repositories into third-party or cloud-based platforms creates cybersecurity exposure and risks touching on attorney-client privilege. Clients may demand assurances regarding data storage, cross-border transfers, and compliance with applicable privacy regimes. Robust data governance therefore becomes an essential consideration for any firm adopting analytics tools.

Interpretability and explainability: Legal analytics demands a level of statistical and technical literacy that is not traditionally part of legal education. Data does not interpret itself. Analytics can misread correlation as causation, misunderstand confidence intervals, or ignore sample size limitations. All of these can lead to flawed strategic decisions. This challenge is compounded by the fact that many predictive models function as black boxes: they produce outputs without clearly explaining why. In a legal context, reasoning and justification are fundamental. This lack of transparency is therefore a significant problem: lawyers and judges are trained to evaluate arguments, not algorithmic scores.

Algorithmic and systemic bias: A significant concern is that historical legal data frequently reflects systemic bias. Past outcomes may embody disparate treatment, whether in sentencing, enforcement patterns, or procedural rulings. And then analytics models trained on that data will replicate, and potentially amplify, those disparities. This raises serious ethical and jurisprudential concerns, particularly in criminal justice and regulatory contexts.

Regulatory and ethical uncertainty: The use of predictive tools in legal decision-making raises other unresolved ethical questions as well. Bar associations and courts are still grappling with how to regulate the use of AI and analytics in legal practice. There is limited clear guidance in most jurisdictions.

Cost and accessibility: Advanced legal analytics tools are expensive, and their costs extend beyond licensing fees to include integration, training, and internal process redesign. In practice, this means they are primarily accessible to large law firms and well-resourced corporations. This risks widening the gap between well-funded and under-resourced parties, which is the opposite of the access-to-justice potential that analytics theoretically offers. Adoption is further complicated by cultural resistance: senior practitioners may be reluctant to embrace data-driven tools if they perceive them as undermining professional judgment. And without firm-wide buy-in, analytics is likely to remain underutilised.

Legal systems vary dramatically in their transparency, digitisation, procedural structure, and publication practices. This jurisdictional fragmentation is a significant obstacle for legal analytics. Analytics tools that function well in one context may be far less effective in another. This is particularly the case when applied across civil and common law jurisdictions. This limits scalability and complicates cross-border application considerably.

Conclusion

Legal analytics have much to offer, but at present still face many challenges, as well.

 

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Legal IT

AI Agents are the next big thing

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In our previous article, we looked at legal technology predictions for 2025. Several experts predicted that AI agents would be the most important evolution. So, let’s have a closer look. In this article, we will answer the following questions, “what are AI agents? “, and “why are they important?”. We will also talk about AI agents in legal technology.

What are AI Agents?

An artificial intelligence (AI) agent is a software program that can autonomously interact with its environment, collect data, and use the data to perform self-determined tasks to meet predetermined goals. Humans set goals, but an AI agent independently chooses the best actions it needs to perform to achieve those goals. So, it is a system or program that is capable of autonomously performing tasks on behalf of a user or another system by designing its workflow and utilizing available tools. AI agents may improve their performance with learning or acquiring knowledge.

IBM explains that “AI agents can encompass a wide range of functionalities beyond natural language processing including decision-making, problem-solving, interacting with external environments and executing actions. These agents can be deployed in various applications to solve complex tasks in various enterprise contexts from software design and IT automation to code-generation tools and conversational assistants. They use the advanced natural language processing techniques of large language models (LLMs) to comprehend and respond to user inputs step-by-step and determine when to call on external tools.”

Why are they important?

Some refer to agentic AI as the third wave of the AI revolution. The first wave was predictive analytics where AI could crunch large datasets to discover patterns and make predictions. The second wave was generative AI, that uses deep learning and large language models (LLM) that can perform natural language processing tasks. And now, the third wave consists of AI agents that can autonomously handle complex tasks.

Because they can autonomously handle complex tasks, and better than ever before, AI agents can change the way we work. One headline gives the example of an AI agent that can reduce programming from months to days. There already are E-commerce agents, sales and marketing agents, customer support agents, hospitality agents, as well as dynamic pricing systems, content recommendation systems, autonomous vehicles, and manufacturing robots, for example. And they all can do the work that was previously done by humans.

AI agents clearly offer several benefits. They can dramatically improve productivity, as they can handle complex tasks without human supervision or intervention. And because processes are automated, this also reduces the costs. AI agents can also be used to do research which in turn allows to make informed decisions. AI agents also lead to an improved customer experience because they can “personalize product recommendations, provide prompt responses, and innovate to improve customer engagement, conversion, and loyalty.”

But, as with any breakthroughs in AI, it is important the remain aware that there always is a dark side, too. Already there are warnings about ransomware AI agents, which work autonomously, and are far more sophisticated than their predecessors.

AI Agents in legal technology

For quite a while now, legal technology has been using bots that automate certain processes. In a way, AI agents are the next generation of bots. Many legal technology experts predicted that 2025 would be the year of the legal AI agents.

A selection of predictions on AI agents in legal technology

The National Law Review, also quoted in last month’s article, interviewed more than sixty experts on legal technology. Several of them talked about AI agents in legal technology. Here is a selection of quotes.

Gabe Teninbaum stated that “The biggest surprise in legal AI in 2025 will be the emergence of agentic AI—systems capable of taking autonomous, goal-driven actions within set parameters. These tools won’t just assist lawyers but will independently draft contracts, conduct negotiations, and even manage compliance, pushing the profession to redefine what it means to “practice law.”” And “by 2025, legal AI will shift from supporting tools to decision-making partners, with agentic systems managing tasks like compliance monitoring and preliminary dispute resolution. The surprise won’t be AI’s capability—it will be the speed at which clients demand its adoption.”

Nicola Shaver said, “Agentic AI, with the capability to automate legal workflows end-to-end, will become more prevalent in 2025, as will AI-enabled workflows generally. We will see a move away from the chatbot model to generative AI that is built into the systems where lawyers work and that mimics the way lawyers work, making it easier to adopt. Lawyers should expect to access custom apps for their legal practice areas in places like their document management or practice management systems and will adopt the tools that they like at a deeper level. In 2025, some lawyers will be using generative AI on a daily basis without even noticing it, since it will be an enabler of so many systems in the back end with less of the prompting burden sitting with end users.”

Tom Martin echoes a similar sentiment, calling Agentic AI “a transformative leap in the direct provision of legal services, driven by strengthening multimodal AI models, agentic capabilities, seamless machine-level orchestration, and evolving regulations governing AI-driven legal entities. This shift won’t just streamline existing workflows; it will redefine the way legal services are conceived, delivered, and experienced.”

Jon M. Garon observes that, “The potential for user-operated agents will grow exponentially as these apps create the power to automate calendaring, meeting coordination, note-taking, work-out buddies, and much more, becoming true personal assistants. Lawyers will need to be careful that the agents do not disclose personal or client data, but with that problem solved, these will grow into a significant new market. ”

Evan Shenkman explains it as follows: “Think about tools that can listen in on depositions, trials, or client intake meetings, and provide the attorney — in real-time — with AI-powered guidance and assistance (issue spotting, identifying inconsistencies or falsehoods, etc.) based on the tool’s prior review and analysis of the entire case file. Or tools that can continually review the case docket, and then unilaterally alert the attorney of what just happened, what now needs to be done, and include GenAI-created proposed drafts based on prior firm samples. These tools are already in the works and will be mainstream soon enough. ”

Benefits of AI Agents in legal technology

The benefits AI Agents will bring to the field of legal technology apply not only to lawyers, but to all legal service providers, including alternative legal service providers.

One of the obvious primary advantages of AI agents in the legal field is their ability to enhance efficiency and reduce costs. Bots have already been doing that to a certain extent by automating repetitive tasks such as document review, legal research, and contract analysis. AI agents are expected to take this process of automating tasks to a new level where entire workflows and more complex tasks will be handled by them as well. This will free up valuable time for attorneys to focus on more complex and strategic aspects of their work. This not only increases productivity but also reduces the likelihood of human error, leading to more accurate outcomes.

The capability to process and analyse large volumes of data at speeds is particularly beneficial in legal research: AI can quickly sift through case law, statutes, and regulations to provide relevant information and insights.

Another significant benefit is the improved client service. By providing real-time updates and centralized document management, these agents encourage better collaboration within legal teams. This leads to more cohesive workflows and ensures that all team members are informed and aligned. All of this contributes to enhancing the client experience. (Several experts, some of whom are quoted above, predict that client demand will be a major factor in the adoption of AI agents).

AI agents also support transfer learning, which enables them to apply knowledge gained in one context to new, related tasks. This reduces the need for extensive retraining and allows legal professionals to leverage AI capabilities across various areas of law.

 

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Legal IT

Legal technology predictions for 2025

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At the end of the year and the beginning of a new one, many publications give their predictions for the new year. In this article, we will go over a selection of legal technology predictions for 2025. We can group them in four categories: legal technology predictions that do not involve AI, predictions on legal issues involving AI, predictions on AI in legal services, and finally, some other legal technology predictions on AI.

Legal technology predictions that do not involve AI

While most of the authors focus on the growing impact of AI, there also are legal technology predictions that do not involve it.

A first set of predictions has to do with client demands. Authors anticipate a significant further proliferation of blockchain, cryptocurrencies, and smart contracts. This will result in a growing demand for lawyers who are versed in these matters. Experts also predict that clients’ expectations will keep on rising, and that law firms will have to adapt to that demand. Already, the legal industry is witnessing a shift towards more client-centric services. Overall, experts also predict a growing demand for legal services for SMBs.

A second set of predictions has to do with the investments law firms will be making. Experts predict an overall increase in investments in technology, and more specifically, apart from AI, increases in spending on knowledge management and on cybersecurity.

Cybersecurity remains a critical concern for law firms, especially with the growing reliance on digital tools and AI. The sector is expected to invest more in cyber resilience strategies to counter potential threats, ensuring the protection of sensitive legal data and maintaining client trust. General counsels and Chief Legal Officer need to up their game when it comes to cybersecurity.

Finally, experts expect the billable hour to further decline, and fixed fees and subscription billing to increase.

Predictions on legal issues involving AI

Several authors also focus on legal issues involving AI. On the one hand, there is the topic of regulating AI, and on the other hand, there is the topic of litigation.

Both the EU and the Council of Europe (CoE) published their frameworks on regulating AI. Unlike the EU AI Act, the Council of Europe’s Treaty is open to all countries who want to sign up. More sign-ups are expected. When it comes to the US, the situation is unclear, as the incoming Trump administration may withdraw from the CoE Treaty. Most experts do not expect the Trump administration to impose its own framework. Several authors do see initiatives on both a state level and on the level of local bar associations. The latter may impose ethical rules regarding the use of AI in law firms, especially when it comes to lawyers using generative AI.

There also is an anticipated increase in litigation related to AI tools and practices. One of the areas where experts predict more litigation involves the disputes over unauthorized use of copyrighted materials for AI training. They also expect an increase of product liability lawsuits involving AI-systems. And an increase in litigation is also anticipated when it comes to AI-induced biases in processes like job screening, and potential antitrust violations stemming from AI-driven pricing tools.

Predictions on AI in legal services

Most of the predictions, however, focus on how Artificial Intelligence will impact the delivery of legal services. And the topic that is most talked about is the introduction of AI agents in the delivery of legal service. Some call it the most important evolution for 2025.

So, what are we talking about? An AI agent is a software program designed to operate independently, perceiving its environment, analysing information, and taking actions to achieve specific goals. It gathers data through sensors or input systems, processes this data using logic or machine learning models, and performs tasks or interacts with its surroundings based on its objectives. These agents are widely used in applications such as virtual assistants, self-driving cars, and automated decision-making systems, allowing them to function without constant human intervention. So, you can think of them as the next generation, more advanced and more versatile bots. And in 2025, they’re expected to have a huge impact on the delivery of legal services and on the way that law firms and legal departments operate. We will discuss AI agents more in depth in a follow-up article.

AI is also become more integrated in all aspects of the delivery of legal services, from optimizing and automating workflows, enhancing knowledge management, and handling specific tasks autonomously. Most experts anticipate that all cloud-based software for lawyers and law firms will be integrating more AI into their systems. Overall, authors also predict that generative AI will become better and more specialized in specific legal areas.

Several authors talk about how artificial intelligence is already leading to a sharp increase in productizing legal services. This applies to law firms, legal departments, but also to alternative legal service providers. Some expect hybrid lawyers and/or self-service legal platforms to become as ubiquitous as online banking. Some even anticipate that more and more lawyers will start collaborating with robot lawyers. And for the first time, some even predict that within 5 years, the combination of the advances in AI and breakthroughs in quantum computing will start replacing entry level lawyers.

Other legal technology predictions on AI

Some experts also made some other legal technology predictions on AI. They are optimistic that Generative AI will improve access to justice, and that we will see courts who will start using Generative AI, as well to become more effective.  They also expect a consolidation movement in the market of legal technology service providers. Finally, some expect that Legal AI and Generative AI will become part of law school curriculum.

 

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Legal IT

How lawyers communicate with clients

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In this article we look at how lawyers communicate with clients. We start off with how lawyers communicate with clients using traditional means like phone, mail, and fax. Then we look at more modern electronic ways of communicating like email, client portals, and document sharing.

How lawyers communicate with clients using traditional means

In the past, lawyers mainly communicated with clients using phone, fax, and traditional mail. These days, they still do, but the traditional means have clearly taken a backseat. Interestingly, there are hardly any recent statistics available on how many lawyers still use phone, fax, and traditional mail. Of the three, phone calls still appear the most popular.

Phone

Lawyers still call their clients, and they call each other. One thing that does stand out is that their clients clearly would prefer to get more phone calls. One of the few available statistics is that clients greatly prefer human-to-human interactions like phone calls (62%) when dealing with issues. Instead, what they receive are largely automated emails.

And there is something to be said about relying on phone calls more often. It is usually much easier to talk about complicated matters over the phone than it is through email. It’s also a better way to build rapport with your clients. And often, it’s just easier to have a casual conversation on the phone than through email.

Traditional mail

For a long time, regular mail was the traditional way of sending and receiving documents, letters, and notices. It is still used by some lawyers and clients who prefer a physical copy of their correspondence or who need to comply with certain legal requirements.

But regular mail has clearly lost much of its appeal. This largely has to do with some of its inherent disadvantages. It is slow and unreliable compared to other methods. It can be lost, damaged, or intercepted by unauthorized parties. There typically also are additional costs for postage and printing. And, finally, it can create clutter and wastepaper.

According to a survey conducted by the American Bar Association in 2020, only 9% of lawyers reported using regular mail as their primary method of communication with their clients, while 75% reported using email as their primary method.

Fax

Fax is another traditional way of transmitting documents electronically. It, too, has lost much of its popularity because if its limitations. It requires a fax machine or service that may not be always available or accessible. It can be expensive due to phone charges or subscription fees. Faxes can be low-quality or illegible due to poor resolution or transmission errors. They can be insecure or untraceable due to lack of encryption or confirmation.

According to the same survey by the American Bar Association in 2020, only 4% of lawyers reported using fax as their primary method of communication with their clients.

 

Electronic Communications

Email

These days, email is king. It is the most common way of communicating with clients. It is fast, convenient, and cost-effective. It allows lawyers to send and receive documents, attachments, and messages at any time and from any device. It also enables lawyers to keep a record of their communication history and to organize their inbox using folders and labels.

As mentioned above, in 2020, it was the preferred way of communication of 75% of lawyers. The same survey revealed that 92% of lawyers reported that they had sent confidential or privileged communications/documents via email. Additionally, nearly half of those lawyers (49%) shared that they did so at least once every day. Also worth noting is that 25% of clients prefer emails as the initial method of outreach.

However, email has its own drawbacks. It can be hacked, spoofed, or infected by malware or viruses. It can be misinterpreted or misunderstood due to lack of tone or context. It can be ignored or overlooked due to spam filters or information overload. It can create legal risks if not used properly or securely. It is why that American Bar Association recommended using client portals and/or sharing of documents instead, as they are more secure.

Client portals

Client portals are secure online platforms that allow lawyers and clients to communicate and collaborate on their cases. They offer several benefits over email and fax. They provide a centralized and organized place for storing and accessing documents, messages, calendars, tasks, invoices, and payments. They allow real-time updates and notifications on the status and progress of the case. They enable interactive features such as chat rooms, forums, polls, surveys, or feedback forms. They often allow to generate documents automatically, collecting the necessary data that are available in the portal. They enhance security and privacy by using encryption, authentication, and authorization.

Client portals may have compatibility issues with other software or systems that lawyers or clients use. There may also be legal implications such as ownership, liability, or jurisdiction. Lawyers are therefore recommended to choose a reliable and reputable client portal provider that meets their needs and expectations. They should also educate and train their clients on how to use the portal effectively and efficiently.

Document Sharing

Client portals typically allow document sharing within the portals. But it is also possible to share document without the need for a dedicated legal client portal. These days, cloud technologies allow for the safe sharing of documents. It involves using online tools such as Google Docs, Microsoft SharePoint, or Dropbox Paper that allow multiple users to view, edit, or comment on the same document simultaneously or asynchronously. In a previous article, we explained how Syntex offers exciting new opportunities. So, it is yet another way of communicating and collaborating with clients.

Like client portals, document sharing allows real-time or near-real-time feedback and revisions on the document. It eliminates the need for sending multiple versions or attachments of the document. It preserves the history and track changes of the document. It facilitates teamwork and brainstorming on the document. It is a secure and reliable way to share information between lawyers and their clients. And for those reasons alone already, it is to be preferred over email.

To reap the greatest benefits of document sharing, lawyers should follow some guidelines when sharing documents with comments. They should use clear and constructive comments that are relevant and respectful. Use different colours or symbols to distinguish between different types of comments, such as questions, suggestions, corrections, or approvals. Make sure to acknowledge or address comments. Use lock or protect functions to prevent unauthorized or accidental changes to the document. Finally, use share or invite functions to control who can access or edit the document.

Conclusion

The ways lawyers communicate with their clients has changed dramatically over the last decades. Electronic ways of communicating have clearly taken over. And email has become the predominant way of communicating. But because of its inherent insecurity, client portals and document sharing should be given preference.

 

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The 2024 law firm

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Usually, at the beginning of a new year, we look back at the trends in legal technology of the last year. Unfortunately, the reports that are needed to do that are not available yet. So, instead, with Lamiroy Consulting turning 30 in February 2024, we will have a look at the 2024 law firm, and at how law firms have evolved over the last decades. We will discuss a range of topics concerning technology and automation in the 2024 law firm, including artificial intelligence, communications. We will see how the cloud, remote work, and virtual law offices have changed law firms, etc.

Technology and automation in the 2024 law firm

Let us go back in time. The early 80s saw the introduction of the first personal computers and home computers. Word Processors had been around since a few years before that. They were found in only a very small minority of law firms at the time. The Internet as we know it, did not exist yet. By the time 1994 came, things had started to change, and a legal technology revolution was on the horizon. Fast forward to 2024. Law firms that don’t use computers or equivalent mobile devices are an endangered – if not extinct – species. Many operational processes in the law firm have been automated.

So, it is safe to say that over the past decades, technology and automation have transformed the legal industry in many ways. According to a report by The Law Society, some of the factors that have contributed to this transformation include increasing workloads and complexity of work, changing demographic mix of lawyers, and greater client pressure on costs and speed.

Two of the most significant changes has been the introduction of the internet with its cloud technologies and of Artificial Intelligence (AI). Most of the evolutions described below have been made possible by the Internet.

Artificial Intelligence

The introduction of Artificial Intelligence (AI) has been one of the main factors driving a substantial transformation of the legal industry. One of its main benefits has been that it notably improved attorney efficiency. AI plays a key role in tasks such as sophisticated writing, research, and document drafting, significantly expediting processes that traditionally could take weeks.

Communications

Law firms have moved from traditional methods of communication such as snail mail to more modern methods. These include email, client portals, and cloud-based communications, like Teams and SharePoint. They allow people to share documents with different levels of permissions, ranging from reading and commenting to editing.

Client portals have become increasingly popular in recent years, allowing clients to access their legal documents and communicate with their attorneys in real-time. This has made it easier for clients to stay informed about their cases and has improved the efficiency of law firms.

Cloud, Remote work, and Virtual Law Office

The legal industry has experienced a notable surge in remote work and virtual law offices. Much of this has been particularly accelerated by the COVID-19 pandemic. Virtual law offices, facilitated by cloud-based practice management software, offer attorneys the flexibility to work from anywhere, leading to increased flexibility and reduced overhead costs for law firms. The cloud has played a crucial role in this shift. It allows virtual lawyers to run fully functional law firms on any device with significantly lower costs compared to on-premise solutions.

Digital Marketing and Online Presence

The legal industry has also witnessed major changes in its marketing practices over the past decades, adapting to the internet era. Recent studies indicates that one-third of potential clients initiate their search for an attorney online. This emphasizes the importance of a strong online presence for law firms to stay competitive. Law firms now prioritize digital marketing through channels like social media, email, SEO, and websites. Whether marketing the entire firm or individual lawyers, a robust digital strategy is essential for establishing credibility and connecting with potential clients. Personal branding is crucial for individual lawyers, highlighting achievements and values, while law firms should focus on building trust through a comprehensive digital marketing strategy.

Billing and Financial Changes in the 2024 Law Firm

Another area where the legal industry has undergone significant changes is in billing and financial practices. In the past, law firms relied on traditional billing methods such as paper invoices and checks. However, with the advent of technology, law firms have shifted to digital billing methods such as electronic invoices and online payment systems. This has made the billing process more efficient and streamlined. In addition to digital billing methods, law firms have also adopted new financial practices such as trust accounting. Trust accounting is a method of accounting that is used to manage funds that are held in trust for clients. This is particularly important for law firms that handle client funds, such as personal injury or real estate law firms.

Over the last decades, alternative fee arrangements (AFAs) have also significantly impacted the legal industry. They did so by offering pricing models distinct from traditional hourly billing. AFAs, including fixed fees, contingency fees, and blended rates, have gained popularity as clients seek greater transparency and predictability in legal fees. A recent study identified 22 law firms excelling in integrating AFAs into their service delivery, earning praise from clients for improved pricing and value. The study underscores a client preference for firms providing enhanced pricing and value. This emphasizes how AFAs not only contribute to better relationships between law firms and clients but also demonstrate the firms’ commitment, fostering trust and credibility.

Legal Research and Analytics

Legal research and analytics have also been revolutionised over the last decades, making the process more efficient and accessible. We have seen primary and secondary legal research publications become available online. Facilitated by information and communication technologies, this has replaced traditional storage methods like compact discs or print media. This shift has not only increased accessibility but also allowed legal professionals to conduct more comprehensive and accurate research. Furthermore, the emergence of legal analytics has empowered professionals to enhance legal strategy, resource management, and matter forecasting by identifying patterns and trends in legal data.

Client Expectations

Another notable change is that clients’ expectations of lawyers have evolved significantly. A recent survey highlights that 79% of legal clients consider efficiency and productivity crucial, indicating a demand for more effective legal services. Additionally, clients now expect increased accessibility and responsiveness from their lawyers, prompting law firms to integrate new technologies such as client portals and online communication tools. Transparency in fees and billing practices is also a priority for clients, leading to the growing adoption of alternative fee arrangements by law firms. (Cf. above).

Globalization

Finally, globalization has significantly impacted the legal industry. It forced law firms to adapt to a changing global landscape and heightened demand for legal services across borders. Many European law firms, these days, are members of some international legal network, with branches in many EU countries. And a recent study highlights the emergence of a new corporate legal ecosystem in emerging economies like India, Brazil, and China. This presents opportunities for law firms to expand globally. In response to the globalization of business law and the increasing demand from transnational companies, law firms are transforming their practices. They do so by merging across borders and creating mega practices with professionals spanning multiple countries. This shift has prompted the adoption of new managerial practices and strategies to effectively manage global operations within these law firms.

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Legal IT

Ambient Computing for lawyers

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In our previous article, we discussed ambient computing: what it is, and what the benefits and challenges are. In this article we discuss what the relevance of ambient computing is for lawyers. We look at ambient law, which deals with the legal aspects of ambient computing. Then we ask ourselves, “what are the benefits of ambient computing for lawyers?”, and “what are the challenges?”. But first we start with a short recap on what ambient computing is.

A short recap: what is ambient computing?

In our previous article, we explained that “ambient computing is the idea of embedding computing power into everyday objects and environments, to make them smart, connected, and responsive. The goal is to make it easier for users to take full advantage of technology without having to worry about the details. (…) Ambient computing relies on a variety of technologies, such as sensors, artificial intelligence, cloud computing, voice recognition, gesture control, and wearable devices, to create a seamless and personalized user experience. Ambient computing devices are designed to be unobtrusive and blend into the background, so that users can focus on their tasks and goals rather than on the technology itself.” As such, the concept of ambient computing is closely related to the concept of the Internet of Things.

Examples of ambient computing technology are found in smart homes, cars, business premises, as well as other domains, such as health care, education, entertainment, and transportation, etc.

So, now that we know what ambient computing is, we can focus on the next question: what does ambient computing mean for lawyers and the legal profession? Three items come to mind: what are the legal aspects of ambient computing? What are the benefits for lawyers? What are the risks and challenges for lawyers?

Ambient Law: the legal aspects of ambient computing

When the Internet of Things was starting to take form, the term ambient law was introduced to refer to the legal aspects of using ambient technology. There are four main areas where legal issue can arise, and we can pair them in two sets of two. On the one hand, there is data privacy and security. On the other hand, there is liability and accountability.

Data Privacy and Security

Ambient computing involves collecting, processing, and sharing large amounts of personal and sensitive data from various sources and devices, which raises significant privacy and security concerns.

Privacy: In our previous article we wrote that ambient computing collects vast amounts of data about users’ behaviour, preferences, location, health, and more. This data can be used for beneficial purposes, such as improving services and personalization. But it can also be misused or compromised by malicious actors or third parties. Or they can be sold to third parties, often without the users’ knowledge or consent. Many car manufacturers, e.g., are guilty of this.

In this context, it is worth referring to the SWAMI project, which stands for Safeguards in a World of Ambient Intelligence. This project took a precautionary approach in its exploration of the privacy risks in Ambient Intelligence (AmI) and sought ways to reduce those risks.

The project discovered that several “dark scenarios” where possible that would have negative implications for privacy protection. It identified various threats and vulnerabilities. Legal analysis of these scenarios also showed there are shortcomings in the current legal framework and that the current legislation cannot provide adequate privacy protection in the AmI environment.

The Project concluded that a new approach to privacy and data protection is needed, based on control and responsibility rather than on restriction and prohibition.

Security: Again, there are several aspects to the security side of ambient computing. On the one hand, all the personal data it collects must be protected. Another side is that in essence each new ambient device increases the security risk. Ambient technologies can expose users’ devices and data to cyberattacks or physical tampering. This can compromise users’ safety and functionality of their devices. Cars and baby monitors, e.g., appear to be easy targets for hackers.

There have been initiatives already to tackle the possible security risks inherent in ambient computing. Relevant data security laws generally focus on data protection, cybersecurity, cross-border data transfers, the rights of the data subject, and on penalties for non-compliance.

Liability and accountability

The other two aspects are legal liability and accountability: Ambient computing involves delegating some decisions and actions to autonomous agents or systems that may not be fully transparent or predictable. This raises questions about who is responsible and liable for the outcomes or consequences of those decisions or actions, especially when they cause harm or damage to others. (In a previous article, we looked at robot law and looked at who would be responsible for a robot’s actions: is it the robot, the owner, or the manufacturer?)

As we are dealing with new technologies that are literally all around us, legal liability and accountability in ambient computing are complex issues.

What are the benefits of ambient computing for lawyers?

In our previous article, we highlighted some general benefits of ambient computing. These include convenience, efficiency, engagement, and empowerment. More specifically for lawyers, ambient computing can offer three groups of benefits.

A first set of benefits has to do with improving productivity and efficiency. Ambient computing technology can automate and streamline many routine tasks and processes that lawyers perform. Some law firm management software can already be voice controlled and work together with artificial assistants. (Our article on virtual legal assistants discusses this, too).

Ambient computing can also enhance client experience and satisfaction. It can enable lawyers to provide more personalized, responsive, and proactive service to their clients, by leveraging data and insights from various sources and devices.

Finally, ambient computing can open up new business models and opportunities. It can create new types of services, products, and platforms that leverage ambient intelligence and connectivity.

What are the challenges?

Ambient computing also poses some challenges and risks for lawyers, including the ones we already mentioned above when talking about ambient law.

When it comes to protecting data privacy and security, lawyers have a duty to protect the confidentiality and integrity of their clients’ data, as well as their own data. Therefore, they need to ensure that they comply with the applicable laws and regulations on data protection, such as the GDPR. They also must make sure their ambient technology complies with the ethical standards and best practices of their profession. Furthermore, they need to be aware of the potential threats and vulnerabilities that ambient computing introduces, such as data breaches, cyberattacks, unauthorized access, etc., and take appropriate measures to prevent or mitigate them.

For lawyers, too, there are aspects of legal liability and accountability. Ambient computing involves delegating some decisions and actions to autonomous agents or systems that may not be fully transparent or predictable. This raises questions about who is responsible and liable for the outcomes or consequences of those decisions or actions, especially when they cause harm or damage to others. Lawyers need to understand the legal implications and risks of using ambient computing in their practice or advising their clients on it. They also need to ensure that they have adequate contracts, policies, insurance, etc., to cover any potential liability or claims that may arise from ambient computing.

Finally, ambient computing may force lawyers to adapt to changing roles and skills. Ambient computing may disrupt or transform some aspects of the legal profession or industry, by creating new demands or expectations from clients or stakeholders. Lawyers need to be prepared to adapt to these changes and embrace new roles and skills that ambient computing requires or enables. For example, they may need to become more tech-savvy or data-driven, collaborate more with other professionals or disciplines, or specialize in new areas or domains related to ambient computing.

Conclusion

Ambient computing is an emerging trend that has significant implications for lawyers and the legal profession. Ambient computing can offer many benefits for lawyers who want to improve their practice and service delivery. However, it also poses some challenges and risks that lawyers need to address carefully. Lawyers who want to embrace ambient computing need to be aware of the legal and regulatory aspects of ambient computing in their jurisdiction or context. They also need to be proactive in learning and adopting the best practices and tools that ambient computing provides or demands.

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Legal IT

Social media for lawyers

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In this article, we focus on social media for lawyers. We start with some statistics about social media that underpin their relevance. Next, we have a look at the different categories of social media that exist. We conclude with a selection of social media that are recommended for lawyers.

Some statistics about social media

In a previous article, we explained why social media matter. They are a valuable marketing tool, even for lawyers, because they provide direct access to your target audiences.  Legal consumers are online consumers and social media allow them to familiarize themselves with the lawyers whose services they want to employ.

And social media are extremely popular, as the following statistics illustrate.

  • In April 2023, there were 4.8 billion social media user identities, which is the equivalent of 59.9% of the global population. If we narrow it down to adults (18 years and older) then we are dealing with a number that is the equivalent of 78% of the population.
  • If we look at the number of people using the Internet, then we find that 92.7% of them are on at least one form of social media.
  • The average time a social media user spends each day on social media amounts to 2 hours and 24 minutes.
  • Demographics: 46.5% of social media users are female, while 53.5% are male.
  • People who are active on social media tend to be active on more than one platform and on average have 6.6 social media profiles.

A key concept in the metrics about social media users is the number of monthly active users (MAU). These are the unique users who use a social media platform at least once a month. Based on these monthly active users, these are the 21 most popular social media platforms.

  1. Facebook — 2.96 billion
  2. YouTube — 2.2 billion
  3. WhatsApp — 2 billion
  4. Instagram — 2 billion
  5. WeChat — 1.26 billion
  6. TikTok — 1 billion
  7. Sina Weibo — 573 million
  8. QQ — 538.91 million
  9. Telegram — 550 million
  10. Snapchat — 557 million
  11. Kuaishou — 573 million
  12. zone — 553.5 million
  13. Pinterest — 444 million
  14. Twitter — 238 million
  15. Reddit — 430 million
  16. LinkedIn — 424 million
  17. Quora — 300 million
  18. Discord — 150 million
  19. Twitch — 140 million
  20. Tumblr — 135 million
  21. Mastodon — 2.5 million

Now, many of those you may not be familiar with because they are mainly used in the Far East, and more specifically in China. Those are probably less relevant for most Western lawyers.

Not yet included in the list is Threads, the new Twitter alternative that was launched by Instagram. In the week after it was launched on 5 July 2023, it already gathered more than 100 million users, which would put it near the top 20. But note that at the time of writing, Threads is not available in the EU.

Categories of social media

There are many different types of social media. To tell them apart, it makes sense to group them in different categories. The Wikipedia uses the following categories.

  • Blogs are informational websites published on the World Wide Web, consisting of discrete, often informal diary-style text entries (posts). By now, most law firms have their own blog. (For more information, read our article on starting a blog).
  • Business networks are a type of social network service that focuses on interactions and relationships for business opportunities and career growth, with less emphasis on activities in personal life. LinkedIn is an example of a business network. Most law firms also are on LinkedIn.
  • Collaborative projects like, e.g., Wikipedia.
  • Enterprise social networks focus on the use of online social networks or social relations among people who share business interests and/or activities. Enterprise social networking is often a facility of enterprise social software. Yammer and Socialcast are examples.
  • Discussion Forums
  • Microblogs are a form of blogging using short posts without titles. When Twitter, e.g., launched, the size of a message was limited to only 140 characters. Other examples include Tumblr, Mastodon, Post.News, Threads, Spoutible, et. al.
  • Photo sharing websites like Instagram, Flickr, Photobucket, etc.
  • Websites with crowd-sourced reviews of products and/or services. Sometimes these focus on specific market segments like, e.g., Tripadvisor, while others are more generic, like Yelp or Amazon.
  • Social bookmarking are online services which allow users to add, annotate, edit, and share bookmarks of web documents. Delicious and Pinterest are two examples.
  • Social gaming (ex. Mafia Wars, World of Warcraft).
  • Generic social network sites like Facebook.
  • Video sharing websites like YouTube, Vimeo, TikTok, etc.
  • Virtual worlds are computer-simulated environments which may be populated by many users who can create a personal avatar, and simultaneously and independently explore the virtual world, participate in its activities and communicate with others. (We discussed virtual worlds before in our article on Web3).

Note that in this overview the Wikipedia did not include messaging apps like WhatsApp, Telegram, or Signal, while most other overviews do include them. Not included either are websites where people can ask all kinds of questions, like Quora or Reddit.

It is also worth pointing out that the boundaries between these categories are fluid and that they often overlap. Videos, e.g., are not only shared on video sharing sites, but also on virtually all messaging apps, as well as on most other popular platforms like LinkedIn, Facebook, etc.

A selection of social media for lawyers

The annual reports by the American Bar Association and Good2bSocial reveal that by now most law firms are active on social media. Many are present on the most popular platforms like LinkedIn and Facebook, and most have their own blog. The most important current trends are that a) more and more law firms are discovering short form video and start using those, and b) that firms who cater to multiple audiences are seeing the importance of market segmentation. In other words, law firms are learning it pays off to target different audiences on different platforms.

Online articles that recommend lawyers which social media to use are fairly consistent in their recommendations. The selection below is limited to those social media that are most relevant for lawyers, topic-wise and geographically. For most of the ones listed below, we have discussed them before in our blog articles.

When it comes to business networking, LinkedIn is the platform of choice.

When it comes to general social media, Facebook is the most popular choice. Recent statistics show that in the US more law firms are advertising on Facebook than on LinkedIn.

When it comes to messaging apps, there are more options. WhatsApp, Instagram, Snapchat, Telegram, and Signal are all popular. Because of privacy concerns, Signal is probably most recommended for lawyers. Note that most messaging apps now also allow to create groups which can function as mailing list for updates as well as short newsletters. A WhatsApp group can currently have 1 024 members, whereas a Telegram super group can have up to 200 000 members.

Because online consumers like to know in advance who they are dealing with, photo sharing apps can provide them with a more human side of a law firm. Instagram still is the most popular platform, followed by Snapchat, Flickr, and Photobucket.

Up until recently, the platform of choice for micro-blogging was Twitter. But since Elon Musk took over, many users and advertisers have turned their back on Twitter. Several alternatives are available, like Mastodon, Threads, Tumblr, Bluesky, or, e.g., Post.news. Threads seems to be positioning itself as the main alternative but is not available in Europe.

For video sharing, there again are several options. For longer videos, YouTube and Vimeo are the platforms of choice. For short-form videos, TikTok, Instagram, and Snapchat are currently most popular. Note, however, that for lawyers TikTok is not recommended because of serious privacy concerns. Several governments worldwide have ordered officials to remove TikTok from their smart phones.

Pinterest still is the recommended platform for social bookmarking.

When it comes to question-and-answer forums, Quora and Reddit are the two main platforms.

That concludes our overview of recommended social media for lawyers in 2023.

 

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Legal Technology Predictions for 2023

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Towards the end of every calendar year, the American Bar Association publishes the results of its annual legal technology survey. Several legal service providers, experts, and reporters, too, analyse existing trends and subsequently make their own legal technology predictions for 2023. Some items stand out that most pay attention to. In this article, we will look at automation, artificial intelligence, cloud-native solutions, virtual legal assistants, data privacy and cybersecurity, crypto technologies, blockchain, and smart contracts. We will briefly pay attention to some other trends, as well.

Automation

Automation keeps being a major driver of change in many industries. The legal sector is no exception, even though it lags compared to many other sectors. Lawyers seem to take longer to catch up that automation is beneficial. It is making many processes in the legal industry faster, more efficient, and less expensive. Automation has proven to be successful in fields like legal research, e-discovery and document review and management. In 2023, we can expect to see this trend continue, with a renewed focus on automating the law firm administration and on the creation and review of legal documents. Automated workflows can be used to streamline legal processes, such as litigation support, e-discovery, and case management. Automation can also assist in organizing and tracking progress and regulatory changes, data collection, reporting, and communication. An increase in automation will help to improve the accuracy of legal processes, reducing the risk of errors, and increasing efficiency.

Artificial Intelligence

Artificial Intelligence is becoming ubiquitous. In many aspects of our lives, there now are AI solutions available that make life easier. In the legal sector, too, AI is starting to make waves. In all the above-mentioned examples of automation, AI is playing a crucial role. As mentioned above, AI has already been successfully assisting lawyers with legal research, with process and workflow automation, with the generation of legal documents, as well as with e-discovery. But those are still fairly simple applications of AI. It can do far more. These days, AI is also being used to digest vast volumes of text and voice conversations, identify patterns, or carry out impressive feats of predictive modelling. The virtual legal assistants that we’ll discuss below, too, are all AI applications. If properly used, AI can save law firms much time and money. In 2023, we can expect to see a more widespread adoption of AI in the legal sector. (More on Artificial Intelligence and the Law).

Cloud-Native Solutions

Cloud computing has been a game-changer for many industries. Previous reports had already revealed that lawyers, too, are more and more relying on cloud solutions. This should not come as a surprise, as Cloud-based solutions provide many benefits, including reduced costs, increased scalability, and improved data security. They help lawyers and clients share files and data across disparate platforms rather than relying solely on emails. Additionally, cloud-based solutions are more accessible, allowing legal firms to work from anywhere and collaborate more effectively with clients and other stakeholders. In 2023, we can expect this trend to continue. (In the past, we have published articles on cloud solutions for lawyers, on managing your law firm in the cloud, an on lawyers in the cloud).

Virtual Legal Assistants (VLAs)

In the past, we have talked on several occasions about legal chatbots. Chatbots have sufficiently matured to now start playing the role of virtual legal assistants. VLAs are AI-powered chatbots that build on basic neural network computing models to harness the power of deep learning. They use artificial intelligence algorithms to assist law firms with various tasks. Gartner predicts VLAs can answer one-quarter of internal requests made to legal departments. They extend the operational capacity of law firms as well as of in-house corporate legal teams. As a result, they assist in reducing lawyers’ average response time and producing distinct service delivery efficiencies. Furthermore, as VLAs are a form of automation, all the benefits of automation apply here too: virtual legal assistants can help to improve the accuracy of legal work, reduce the risk of errors and increase efficiency. At present, virtual legal assistants are still primarily being used in uncomplicated and repetitive operations. Recent breakthroughs, however, indicate that they are already able to take on more complex tasks and will continue to do so.

Data Privacy and Cybersecurity

Ever since the GDPR, data privacy and cybersecurity have become increasingly important. In 2023, we can expect to see an ongoing emphasis on data privacy and as well as an increase in attention to cybersecurity in the legal sector. (The examples of high-profile Big Tech corporations receiving massive fines seem to be a good incentive). Law firms have understood that they too need to make sure that they have robust data privacy and cybersecurity measures in place to protect their clients’ confidential information. Several law firms also provide their clients assistance with the legal aspects of data protection.

Crypto technologies, Blockchain, and smart contracts

The market of cryptocurrencies was volatile in 2022. That did not stop an increase in interest in the underlying crypto technologies. Experts predict rises in a) regulation of cryptocurrencies and crypto technologies, in b) the adoption of cryptocurrency, c) a growing interest in decentralized finance (DeFi), and d) an increase in attempts at cryptocurrency taxation. We are already witnessing an intensification in litigation with regard to cryptocurrency and crypto technologies. This trend is expected to continue. Litigation about NFTs, e.g., is one of the areas where litigation is expected to rapidly increase.

Experts also expect an ongoing interest in and an increased adoption of Blockchain technology. Blockchain can be used to securely store and manage legal data, reducing the risk of data breaches and ensuring the integrity of legal records. Additionally, blockchain can be used to automate many legal processes, such as contract management and dispute resolution, by enabling the creation of smart contracts. As we mentioned in previous articles, smart contracts can streamline many legal processes, reducing the time and cost associated with contract management and dispute resolution. They can also help to increase the transparency and accountability of legal transactions, reducing the risk of fraud and improving the overall efficiency of legal processes.

Other Trends

The ABA survey report noticed that law firms are spending more money on legal technology than ever before. In many cases, this involved investing more in tightening cybersecurity.

The trend to work remotely and to use video conferencing for virtual meetings that started during the pandemic is ongoing.

More than ever before lawyers pay attention to their own work experience, as well as to the user experience for their clients by making their law firms more client centred. There is an ongoing focus on work-life balance, not only for the lawyers but also for the employees of law firms. Law firms are finally starting to consider things like employee satisfaction.

While billable hours remain the most used fee model, there has been a noticeable increase in lawyers using a subscription fee model.

Finally, the trend that law firms are increasingly hiring people with hybrid profiles is continuing. By increasing cognitive diversity, law firms want to close the gap between professionals with knowledge of legal matters and those with enough legal tech expertise to manage the digitization and automation of workflows. Gartner predicts that by the end of 2023, one third of corporate legal departments will have a legal tech expert in charge of managing the digital transformation and automation of internal processes. Large law firms are also increasingly hiring lawyers that are familiar with business administration.

 

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The legal technology renaissance

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In this article, we discuss the legal technology renaissance that is occurring. We look at the recent legal technology boom, at some examples, and at the benefits. We observe what is driving this renaissance and what obstacles it has to overcome. We look at the consequences for the legal market, and at how to make it work for you.

The Recent Legal Technology Boom

In recent years, we have experienced a veritable legal technology renaissance, or legal tech boom, as some call it. A multitude of factors contributed to this. We have more computing power than ever before, with cloud computers doing the heavy lifting. We have made significant breakthroughs in artificial intelligence. The legal market has been changing dramatically and the legal technology market has followed suit. Finally, the pandemic too has been a catalyst for change. Law firms were forced to reorganize the way they work and invest in technology to be able to do so. In the process, many law firms took this as an opportunity to also invest in technology to improve their service delivery model. As of June and July 2021, we witnessed the first legal technology IPOs.

This boom is expected to continue in the next few years. In fact, some say this renaissance is only starting, as the demand for legal expertise is exploding. Gartner, e.g., made the following predictions:

  1. By 2025, legal departments will increase their spend on legal technology threefold.
  2. By 2024, legal departments will replace 20% of generalist lawyers with non-lawyer staff.
  3. By 2024, legal departments will have automated 50% of legal work related to major corporate transactions.
  4. By 2025, corporate legal departments will capture only 30% of the potential benefit of their contract life cycle management investments.
  5. By 2025, at least 25% of spending on corporate legal applications will go to non-specialist technology providers.

Big law firms and legal departments have taken the lead in this legal technology renaissance. By now, mid-size law firms and small law firms are catching up and starting to reap the benefits as well.

Some examples

Let us have a look at some examples where legal technology has changed the ways law firms and legal departments operate. A first area has to do with streamlining the administrative operations of the law firm or legal department. Examples here include document automation, E-Billing, and E-Filing. A second area has to do with streamlining casework, where progress has been made with eDiscovery software and with case management software. In both areas, far more aspects of the overall process have been automated than ever before. A third area has to do with collaboration and exchange of ideas. We are seeing a steady rise in online collaboration tools, in the use of AI-enabled chatbots and virtual legal assistants, in online education, and in video conferencing, where the pandemic resulted in a sharp increase in the available tools. Finally, major progress has also been made in the availability and usage of different kinds of analytics. These provide us with new insights in how law firms and legal departments can be run more efficiently. They also offer new insights into patterns when conducting legal research. Predictive analytics, e.g., allow to predict the chances of success in specific cases.

Benefits

The benefits of this legal technology renaissance are threefold. A first benefit is greater efficiency and better service delivery. Automation reduces errors, speeds up and improves the quality of legal service delivery. It also allows for greater scalability. A second benefit is the greater insight we gain. These are the result of Machine Learning and analytics, but also of analyzing our workflows for automation so they can be optimized. Finally, the boom in legal technology is helping to bridge the Access to Justice gap.

What drives this legal technology renaissance?

There are three key concepts that are central to this legal technology renaissance. First, it Is about automation. The technological progress that has been made allows to automate far more of the legal service delivery process. The mantra has become to automate where possible to increase productivity and efficiency. If law firms want to remain competitive, automation is inevitable.

A second aspect of this boom has to do with Legal Digital Transformation. The Global Tech Council describes it as the digitizing all areas of legal expertise, including service delivery, workflow, procedures, team communication, and client interaction in the legal sector. The Internet has changed the way we live, where we spend part of our lives online, in a digital world. With some delay, the legal sector is becoming part of that digital world, too.

Finally, the legal technology renaissance is about a new legal services delivery model that is more efficiency-driven, more client-centred, and provides all stakeholders with more insight.

Issues / Obstacles

Not everybody is reaping the benefits yet of these technological breakthroughs. Lawyers are traditionally rather conservative when it comes to their adoption of new technologies. Richard Tromans points to two main issues that are obstacles to greater adoption.

A first issue is “the belief that any of the above applications that relate to automation and improved workflows are somehow an answer in and of themselves, rather than part of a much larger integrated approach to legal services delivery.”

The other challenge stems from the fact that these technologies change the way law firms operate. It isn’t as simple as plug and play. The technologies may not meet over-elevated expectations. And the implementation of new technologies needs to be part of a bigger strategy around service delivery. In essence, these changes need an engagement from not only the IT team, but from the lawyers as well, who will need a hybrid mix of skills. Tromans warns that this can lead to disillusionment and people backing away.

Consequences on the legal market

This legal technology boom is changing the legal market. We already pointed out that it changes the way law firms and legal departments operate. As mentioned above, this technology boom is introducing new legal services delivery models that focus on being more client-centred, on increased efficiency, and increased insight.

As second consequence is the introduction of new players on the legal market. There are plenty of alternative legal service providers. Some of these offer services to legal consumers. These include, e.g., legal chatbots like DoNotPay or DivorceBot. Most of them, however, offer specialized services for law firms and legal departments. These include services like eDiscovery, document automation and review, legal research assistance, analytics, etc.

A third change has to do with the hybrid skill set that is needed in this changed service delivery model. More and more bar associations are opening up to changes in the corporate structure of firms offering legal services. Law firms are allowed to have shareholders, co-owners, and directors that are not lawyers. At the same time, corporate entities are being allowed to offer certain legal services. Some bars are even considering giving accreditation to some alternative legal service providers.

How to make the legal technology renaissance work for you

Making the legal technology renaissance work for you is not a guaranteed immediate success story. Here are some considerations that may be useful.

There are four key elements to planning your digital transformation process. The first two are the selection of 1) the best legal platform, 2) and the best IT infrastructure for that platform. This includes deciding whether to host on-site or in the cloud or opting for a hybrid solution. 3) Understand that optimizing workflows involves legal engineering. And 4) If you are going to use AI-powered solutions, you will need Machine Learning support.

When choosing your best legal platform, consider that the 2021 ABA Legal Tech Survey support observed that as a rule, most solutions work out-of-the-box, and that no customization is required. Experience has also shown that directly using the solution out-of-the-box allows to reap more benefits and faster.

Experience also demonstrated that an incremental implementation strategy tends to be more successful than a once-off big-bang transformation. Such a staged approach leads to success faster and more consistently.

Digital transformation projects tend to be more successful if the firm has some product champions, i.e., users who commit to familiarizing themselves with the solutions first. They can then assist others, show them how to reap the benefits of the new technologies, and convince others to start using them, too.

While implementing a digital transformation process, focus on business outcomes rather than on features. And set realistic ROI benchmarks.

Conclusion

The legal technology boom is disrupting the legal market for the better. As implementing these new technologies changes the way we work, some growing pains are to be expected. A balanced and staged implementation approach offers the biggest chances of success. To remain competitive in a changing market, law firms and legal departments have no choice but to adapt. Some fear that all these changes will make law firms obsolete. The experts don’t agree. Tromans points out that, while technology is very important in moving today’s legal sectors forward, there will undoubtedly always be a need for a human presence and personal connection with clients.

 

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