The legal sector has never had a reputation for embracing technology with open arms. The profession is incredibly complex and change of any kind can be too risky or too expensive. And these concerns are valid. But in a world where reliance on software is growing exponentially, digital transformation is a must.
For law firms to thrive, their commitment to the profession’s core traditions must be combined with a desire to digitalize. Successful law firms function efficiently and deliver value to clients quickly and more affordably than the competition. They automate most of their processes and spend more time focusing on higher-value activities.
Back in 2019, management consultancy firm Altman Weil released findings from its survey titled Law Firms in Transition 2019. The firm reported that 48% of law firms were already using automation technology in their human resources departments. 22% of firms said they had lost clients to firms that utilized technology to reduce manpower.
Technology is a driver of change—and Law Firms need to keep up with it
It’s important to adopt tech not only to streamline operations but because clients expect it. Legal clients have become tech-savvy and realize technology can do the job faster and more cheaply than the ancient processes many law firms still use. If you’re not using technology to make things easier for your clients, they’ll simply look for a law firm that uses digital processes and prices its services more competitively.
Law firms must provide a high level of service at a lower cost. Most alternative legal service providers (ALSPs) use technology to deliver quick and accurate results with as few employees as possible. And they are highly profitable. Research shows that ALSPs represents a $10.7 billion market in the U.S. and enjoy an annual growth rate of about 13%. ALSPs have one competitive advantage—a lower cost structure.
Successful law firms know that technology isn’t just a good thing to have, it‘s a requirement for staying in business. Two technologies that are currently making inroads in the legal profession are low-code and no-code. These technologies can help lawyers automate legal processes and create digital workflows that meet their specific needs without IT assistance.
How will technology shape the future of the legal profession?
Most leading e-commerce brands are customer-focused and offer customers real-time responses, regular updates, and complete transparency. While the legal sector has lagged in this area, competition will force it to change. Technology will allow legal firms to automate customer service and offer real-time responses through chatbots and AI. Clients will receive immediate updates and timely notifications.
We’ll also see more virtual firms, thanks to technology. According to recent forecasts, over 30% of lawyers may work for virtual law firms by 2026. Tech will play an essential role as virtual firms will use it to improve the client experience and streamline operations. Repetitive and tedious tasks will be automated, reducing the potential for errors and mitigating compliance risks.
Embracing the age of digital transformation
Today’s law firms face many business challenges:
- Profitability pressure
- Demanding clients
- Increased competition
- Declining revenue growth
- Cybersecurity hazards
For many law firms, the answer lies in digital technologies that can help them take advantage of new opportunities, innovate, increase efficiency, and reduce risk. No-code and low-code platforms provide security to law firms and their clients as well as cost savings. They also allow for easy file-sharing and collaboration amongst counsel.
Low-code/no-code is the next big thing in the legal industry
Low-code and no-code platforms are the best tools for future-proofing law firms. They can easily adapt to market disruptions and ever-changing consumer behaviour. Lawyers get real-time insights into unresolved matters and end-to-end visibility.
And since these platforms generate powerful reports, lawyers can use the data to take decisive actions. They are in a proactive position to advise clients and there are no surprises around the corner.
