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The Legal Technology Trends of 2019, Part 1

Traditionally, towards the end of the calendar year, two reports are published that shed a light on the state of, and current trends in legal technology. The American Bar Association (ABA) publishes its annual Legal Technology Report (often referred to as the ABA Tech Report), while Clio also publishes an annual report on trends related to legal technology. These two reports differ greatly in scope: where the ABA report is comprehensive, the Clio report tends to focus on one specific aspect. Also noteworthy is that after the ABA publishes its full report, it always publishes a series of articles, focusing on a specific theme. For each of these, it offers a summary and analysis of the findings of the report. Those articles are published over several weeks. At the time of writing, six out of nine have been published. In this article, we’ll have a look at the Clio Report, and at the first three articles on the ABA Tech Report. Next month, when all the articles will have been published, we’ll have a look at the remaining six articles on the ABA Tech Report.

In this year’s legal trends report, Clio investigated how 1000 law firms responded to prospective new clients who asked them some questions, either by mail or by telephone. They chose five common topics, and then sent 1000 mails with related questions to law firms that deal with those topics. They also made 500 phone calls.

The surprising findings of the report clearly demonstrate that law firms struggle to adequately respond to client inquiries. An astonishing sixty percent of law firms did not respond to the emails at all, and twenty-seven percent of firms did not answer or return phone calls. As part of its investigation, Clio also surveyed 2000 legal consumers on what their expectations were when approaching a law firm with their legal issue. Based on how these expectations were met, they created a scorecard for each of the 1000 law firms. Only two of the 1,000 firms surveyed got an excellent rating when it came to replying to emails. Things were only slightly better for the telephone responses, where 20 firms — or 7 percent of the total — received an excellent rating. There clearly is a lot of work to be done.

Let us now continue with the ABA Tech Report and have a closer look on its findings with regard to cloud computing, security, and websites and marketing.

Cloud computing

As was to be expected, the number of lawyers that use cloud services is still growing, with 58% of lawyers replying they were doing so, compared to 55% in 2018. As was the case in previous years, solo and small law firms lead the way, with cloud adoption around 60%. But compared to the rest of the business world, lawyers are still slow to move to the cloud.

The most important finding regarding cloud usage by lawyers, however, was the lack of security measures taken by lawyers when working in the cloud. The report warns that the situation is reaching a crisis point, as there were significant drops in the use of very standard cybersecurity practices. “Although lawyers say that confidentiality, security, data control and ownership, ethics, vendor reputation and longevity, and other concerns weigh heavily on their minds, the employment of precautionary security measures is quite low, with no more than 35% (down from 38%) of respondents actually taking any one of the specific standard cautionary cybersecurity measures listed in the 2019 Survey question on the topic.” (Law Technology Today).

Security

Last year’s report concluded that ” All attorneys and law firms should have appropriate comprehensive, risk-based security programs that include appropriate safeguards, training, periodic review and updating, and constant security awareness.” The same still holds true in 2019. In some areas, progress has been made, but as the situation with cloud usage demonstrates, other areas still need a lot of work. Most law firms need to take extra steps in designing and implementing security solutions.

Some statistics:

  • 26% of law firms reported having experienced a security breach in the last year, while a staggering 19% didn’t know.
  • In 2019, 31% of law firms reported having an incident response plan, up from 25% in 2018.
  • When it comes to encryption, 44% of lawyers encrypt their files; 38% encrypt their mail, and 22% use full disk encryption.
  • 33% of lawyers have cyber liability insurance, compared to 34% in 2018.

Websites and marketing

When it comes to marketing, the report again found there is much room for improvement, especially for solo lawyers and small law firms. The survey revealed that most of them do not have a planned approach to marketing in general, are clueless about online marketing, and may instead be engaging in “random acts of marketing.” For many law firms, it is unclear who oversees marketing, who is making the decisions and why. Law Technology Today summarizes the findings as follows: “The 2019 Survey results show that law firms—and especially solos and small firms—have a long way to go. Unless they begin to develop marketing plans and budgets, establish an online presence and regularly analyze whether their firms are reaching their targets, they will continue to face increasing difficulty competing for business.”

Some statistics:

  • Only 47% of law firms have a marketing budget, with some considerable discrepancies depending on the size of the firm: 94% of large firms, 61% of medium-sized firms (10 to 49 lawyers), 21 % of small firms (2-9 lawyers), and 17% of solo lawyers.
  • 86% of law firms have a website: solo lawyers are again lagging behind, with only 57% of them having one, whereas over 90% of all the others have a website.
  • The number of law firms with a blog has remained stable since 2016 at 30%, with solo lawyers again staying behind at only 9%.
  • More lawyers than ever – about 80% – are using social media. LinkedIn is still the most used platform at 79%, followed by Facebook (54%), Martindale (38%), and Avvo (23%). Noteworthy is that the reported use of Facebook and Avvo has declined over the past year.

Next month, we will have a look at the other findings of the report.

 

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