From the boardroom to the water cooler, digital technology dominates headlines and discussion within law firms. Law 4.0 – the era that includes smarter automation and AI, as well as AI-enabled tools such ChatGPT and Bard – is here to remain and is already radically changing the way lawyers do business.
Technology has transformed the way that the legal industry operates since decades. The working landscape has changed over the years and these changes have become part of the legal profession.
Relatively new entrants to the sector include the Big Four accountancy firms – Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers – global giants that have already invested heavily in technology and are making inroads into the legal marketplace with this one-stop-shop approach. The law firms who do not embrace the digital world will fall behind in their quest for a competitive edge, talent acquisition, and client satisfaction. All of these factors have a significant impact on the bottom line.
Here are some steps you can take to become a digitally-first company:
- Help clients meet their expectations s by providing online FAQs, customer portals and 24/7 access to services and information. Automated responses to emails provide clients with the assurance that their message was received and would be promptly acted upon. Chatbots are able to handle FAQs which would take an inordinate amount of time to answer over the phone. This allows fee earners and support staff to focus on more valuable tasks.
- Automate billing and invoicing using digital tools to ensure accurate time capture and more billable hours. This will increase productivity and profitability. Transparency with clients leads to fewer disputes and less time spent on recalculating invoices. Fewer disputes lead to happier customers, more referrals and repeat business.
- Access to justice. Many courts already use digital tools for increased access, such as virtual and hybrid hearings. Video conferencing, digital exhibits and virtual exhibits have all been adopted by many courts to improve transparency. To be able work with the court system and to be a leader in the online legal world, firms need to implement digital technology.
- Create a compelling employee value proposition. It is important to implement technology that allows for hybrid, remote, and flexible working. This will help you attract the best talent. Automating repetitive tasks allows professionals to spend more time on rewarding and interesting projects, improving the employee experience as well as delivering a higher value productivity for the company. Employers who implement digital learning and performance platforms can be ahead of the competition for talent. These platforms can transform employee development and advancement.
- Maximise cloud for running all platforms, document access and enabling real-time access to information anywhere. It is crucial for hybrid and remote work, including the ability to access documents at client meetings or courts. This gives lawyers more flexibility and versatility. This reduces the need for multiple copies and sharing of documents, such as court bundles. Everyone who needs to view a file has access to the most recent version, so no one is left out.
- Transform job functions and roles. The best digitally literate talents are already adept at using technology to its fullest potential, and the majority of lawyers do more of their own administrative work these days. The role of paralegals and office support staff has changed. The Law Society predicted in 2019 that the number of legal secretaries would decrease by two-thirds by 2027. From one secretary to two lawyers in 1998, there will be one secretary per 20 lawyers by then. As the need for IT support on-site grows, new roles are being created. In the future, there will also be new roles that include experts in legal AI and Virtual Reality/Augmented Reality.
- Keep up with the sector. To be effective, even small firms and solo practitioners must keep up with their peers. All firms are required to work in accordance with the new digital requirements as third-party digitisation increases. For example, the Ministry of Justice Digital Strategy for 2025. The National Will Register is a cloud-based service that allows users to search and register wills. It has over 10,000,000 wills in its system.
- Ensure compliance by using digital solutions with integrated compliance. This will ensure that best practices workflows and processes, as well as the use of best practices are followed. It is especially important in the legal field, where mistakes and oversights could be devastating for professionals, their partners, and even an entire firm, both financially and in terms of reputation. Digital solutions give partners and managers the assurance they are working within the most recent versions of the law, and other mandatory requirements. This is especially valuable during times of change like post-Brexit Employment Law.
- Increase security. Cyberattacks against businesses have increased alarmingly in recent years, and law firms are particularly attractive to criminals. Remote and hybrid working have increased the likelihood of ransomware infecting a system through a poorly configured device or connection. Firms are responsible for implementing the highest levels of security available to protect sensitive data and personal information of clients and employees. Cloud-based systems are more secure than on-premises systems because they store encrypted data across multiple servers.
- Use smarter strategies for business. Accurate and current information is required for good governance, planning, strategy, and budgeting. Digital solutions can improve these processes on many levels, such as by identifying easily and accurately high- and low-performing areas of the business, tracking fee earners’ performance, and more. Data-driven insights ensure that each decision has the maximum impact on efficiency and profitability, while also ensuring a high level of client service and employee satisfaction.
Implementing a digital first strategy can help firms overcome some of the current challenges that have an impact on their management, such as ESG reporting, which is often required by employees, clients and investors. Low-carbon, sustainable strategies can reduce the costs of printing, copying and waste removal. Remote working also reduces pollution caused by commuting. Hot-desking, downsizing and fewer employees at the office allows for lower energy costs and emissions.
Employee platforms and other digital technologies help firms build a more accurate picture of their employees, so they can create policies and work methods that suit all. It may be that seeing people who are similar to them in a company will attract new clients. This may attract more diverse candidates who see the opportunity for a career with a company that is truly inclusive.
A digital-first strategy will improve all aspects of the business, including its functions. It can increase productivity, decrease operational costs, and increase profits and market share. It is also a key component of a successful talent retention and attraction strategy. It helps to retain clients and attract new ones. Data security is enhanced and legal compliance is ensured. It is important that leaders invest the time to understand all the issues as the law enters a new era. This will allow them to reap the benefits of digital technology.
Doug Hargrove is the Managing Director
The Mailbox is located at Level 3, 101 Wharfside Street in Birmingham, B1-1RF, UK
Tel: +44 03304 040810
Fax: +44 01213 594200
Doug Hargrovejoined Advanced via an acquisition in 2013, and brings with him over 25 years senior management experience gained in software companies both in the UK as well as globally. He is a respected leader in the software industry with excellent operational, leadership and industry skills.
Advancedis an UK-based software solution provider with over 2,700 employees, and more than 22,000 customers worldwide. Advanced offers enterprise resource planning software (ERP), vertical market software and people management solutions that help customers excel in the field they are most knowledgeable about.