Overcoming Barriers to Legal Technology Adoption
It is well-documented that upgrading legal technology can improve efficiencies and increase profitability, yet many law departments are reluctant to let go of current processes. Let’s face it, lawyers know how to adapt.
The past few years' remote work challenges have demonstrated the value of technology innovations for in-house counsel.
- By 2024, legal departments will have automated 50% of legal work related to significant corporate transactions (Source: 5 Legal Technology Trends Changing In-House Legal Departments (gartner.com)
- In 2021, the legal tech market generated revenues of 27.6 billion U.S. dollars worldwide, with the market forecast to grow at a compound annual growth rate (CAGR) of over four percent for the period to 2027. In that year, revenues are set to reach 35.6 billion U.S. dollars. (Source: Legal tech market size worldwide 2021-2027 | Statista)
So, the question is, what is stopping in-house counsel from embracing new technology?There are many reasons why in-house legal departments resist using legal technology in their work. These include budget constraints, comfort with current processes, and worries about data privacy and security. Most people who are hesitant to adopt new technology are fearful that it will create more work…They have enough to do without wasting time being trained on another system.
In this blog, we’ll address the top 4 legal technology obstacles and solutions:
1. Security and Privacy
In the legal technology sector, data security and privacy concerns are crucial. Data security is a concern for in-house counsel as they focus on and always prepare for the worst-case situation.
And there is plenty of evidence that they should be cautious. Many multinational corporations have been victims of recent hacks, and the number of businesses with zero or insufficient security precautions is surprising.
Security breaches are on the rise, with a 67 percent increase over the last seven years, according to Accenture’s 4th Annual Cyber Security Report 2021.
In-house counsel’s job is to protect the companies they work for by limiting liability and risk. As education about the benefits of gaining efficiencies and maintaining high security increases, in-house lawyers are gaining confidence to move forward with technology solutions
2. Concerns Regarding the Use of AI (Artificial Intelligence)
Here are some primary uses of AI in law, as recognized by The American Bar Association:
- Electronic discovery and prediction coding
- Managing data and contracts
- Identification of "wrongdoing."
- AI-based legal research
- AI that can spot deception
But the economic forecast for doing so reads differently!
In 2021, the legal tech market generated revenues of 27.6 billion U.S. dollars worldwide, with the market forecast to grow at a compound annual growth rate (CAGR) of over four percent for the period to 2027.
In that year, revenues are set to reach 35.6 billion U.S. dollars.
Cited: Legal tech market size worldwide 2021-2027 | Statista
3. Cut Bad Costs to Be More Productive
Investing in legal IT solutions may seem contradictory when companies want to reduce expenses to remain competitive. Cost plays a significant factor in a company's decision to adopt tech solutions.
In-house legal departments typically perceive law tech solutions as an expense. But gaining efficiencies, doing more with less, and anything that makes your work more productive directly boosts bottom-line profits. The same holds for management systems that reduce administrative resources.
Choosing the least expensive option is not necessarily the best one. However, discussing software options with your proven partner will help you select a law tech solution that balances cost and features. You must select services enabling your entire company's workflows while minimizing spending.
4. The Black Box Test
The lack of knowledge on how a piece of technology operates and generates its results is called the "Black Box Challenge." All industries are struggling with this particular issue, but the legal sector presents specific difficulties given the stakes involved.
First, what is your goal? This is the most important question to ask when assessing what technology will work best for you.
The solution to this is wisely selecting a tech solution for your business. The legal technology sector aims to develop tried-and-true solutions to earn the trust of law firms
How Can You Choose the Best Legal Technology Solution for Your Organization?Many businesses are enthusiastic and confident about adopting legal technology in the future. Many still need to catch up, however. Here are some characteristics to consider while choosing the ideal legal technology solutions for your business.
10 Essential Features to Look for in Your Legal Technology Solution:
Cloud based data & document management
A collaborative solution
Deadline and task management
Full case lifecycle management
Reporting and analytics
Integrated request intake
Quicker and simpler record searching
A secure communications portal
- A 360-degree administration of users and entities
Are you ready to take your legal department on a journey to success?
People-friendly legal software for departments, and in-house counsel can help you get more done with fewer resources.
Modern Cloud business management software from Legal Suite® improves your legal operations, lowering risks and enhancing efficiency for your in-house legal department.
Why In-house Legal Counsel Can’t Do Without a Secure Communications Workspace(legal-suite.com)
The Secret to Simple Effective Management of Legal Processes(legal-suite.com)
About the author:
Legal Suite is the worldwide leader in digital transformation for lawyers. We have delivered our state-of-the-art software for lawyers and in-house general counsel to 65,000 users for over two decades. www.legal-suite.com
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