The legal technology sector is a rapidly growing field with new companies and technologies emerging all the time. According to recent reports, the global legal technology market is expected to reach USD 20.7 billion by 2026, growing at a CAGR of 14.3% from 2023 to 2026.
However, the “lack of collaboration” is preventing legaltech companies and technologies from reaching their full potential, due to the providers being too focused on “competing” with one another, rather than working together to create better solutions for the industry.
According to Rudi Kesic, CEO at Lawtech 365 Group, and a leading expert in the legal technology field:
“The lack of collaboration in the industry remains a major challenge. Despite this rapid growth, the absence of real innovation from the market leaders, such as the big case management software providers, is a major roadblock for innovation. If these key industry players worked together with the new entrants, we could share ideas and innovations that will lead to a more advanced legal environment. However, when collaboration is lacking, progress is slow, and the legal industry has suffered.”
Rudi points out that innovative technology has the potential to revolutionise the way the legal sector operates, but that this can only be achieved through partnership and collaboration. One area that appears to be particularly suffering from a lack of innovation is in the case management field. Case management software is crucial for the efficient and effective management of legal cases, but the big providers are often slow to adopt new technologies and solutions. This is in part due to the reluctance of established players to collaborate with new entrants to the market. According to industry experts, most cloud case management systems have remained “basic customer relationship management” systems (CRMs), much like they were in 2015. Rudi added that most practice and case management systems have “failed to evolve and adapt” to the changing needs of the legal industry.
“The legal sector is in need of more advanced and innovative solutions to help streamline the process and improve outcomes for clients,” he said. “It’s time for cloud case management systems to step up and deliver on that promise.”
Rudi also questions whether these outdated legacy case management systems are actually stifling innovation in the legal sector. He posed an interesting question:
“Are the current case management systems holding back progress in the legal technology sector? There is very little innovation coming from these big players in the industry, so this is a major concern for the future of the sector.”
Many critics argue that while cloud-based practice management systems have made it easier for law firms to manage client data and communication, they have not done enough to drive real innovation and efficiency in the legal sector. “We need to see more progress in terms of automating routine tasks and incorporating artificial intelligence and machine learning into these systems,” added Rudi.
“As the legal industry continues to evolve, it is clear that cloud case management systems will need to keep pace. Only by embracing innovation and incorporating advanced technologies can these systems truly deliver on their promise to improve the legal process for lawyers and clients.”
Rudi added that the legal sector agencies, such as the Solicitors Regulation Authority, the Law Society and HM Land Registry in the UK, should play a bigger role in promoting collaboration and adoption of technology in the legal sector.
“The SRA, in particular, should encourage established players to work with new entrants by creating a more level playing field for all companies operating in the legal technology sector. This would help to encourage innovation and drive progress in the industry. The SRA could also play a role by providing funding, support, and guidance for innovative lawtech companies looking to work together. This could include offering resources for innovative partnerships that promote best practices for collaboration within the legal sector.”
Rudi suggests that the major legal tech players will “have to step up” if they want to remain relevant in an industry that is rapidly evolving. He added:
“The legal market is growing at a rapid pace and the demographics are changing, so the tech providers that fail to keep up will be left behind. The big players in the industry must to step up and start driving innovation, or they will be overtaken by smaller, more nimble companies.”
Rudi is a firm believer that AI-powered platforms, which include open-source technology such as ChatGPT, have the potential to transform the legal sector in the near future.
“Lawtech platforms that utilise ChatGPT AI have the potential to revolutionise the legal sector. In the not-so-distant future, integrated AI systems may even replace lawyers in some capacities.
Advanced AI-driven technologies have the potential to make the legal process faster, more efficient, and more accessible to everyone. AI-powered platforms will help lawyers to make better decisions, faster. They will also help to reduce the cost of legal services, making them more accessible to everyone.”
The integration of AI technology into case management will not only help to increase the efficiency of the legal process, but it will also help to improve the overall quality of legal advice. By leveraging the power of AI, legal technology platforms will be able to offer real-time, accurate, and personalised legal services to clients. This will help to streamline the legal process, reduce the cost, and make legal advice more accessible to everyone.
Rudi points out that the progress of lawtech has been slow when compared to the rapid advancements in fintech. While fintech has disrupted the financial industry and transformed the way we handle money, lawtech has lagged behind. The legal industry is still largely reliant on outdated systems and manual processes, leading to inefficiencies and high costs for both lawyers and clients.
However, he points out that this lack of progress in lawtech is partly due to the “complexities of the legal systems” and the “regulatory constraints” that come with it. It also reflects the tendency of lawtech companies to work in silos, rather than collaborating and sharing resources to drive innovation. “The result is a slow pace of progress in the legal sector, with very little disruption or transformation in the legal industry,” he added.
By embracing “real innovation”, lawtech systems can continue to play a critical role in improving the legal process for clients. By 2030, it’s likely that the most advanced and innovative practice and case management systems will feature a combination of artificial intelligence and machine learning, including a full digital client onboarding journey such as the technology provided by Verify 365, offering more efficient solutions for onboarding clients and managing legal cases, so effectively transforming the legal process, making it faster, more efficient, and more accessible to everyone.
However, without the support of the regulation agencies and established lawtech players, it will be difficult for innovative new entrants to gain traction and make an impact, which could ultimately be detrimental to the industry as a whole.
It is time for industry players to come together and work towards a more collaborative and innovative future of the legal sector.
By Verify 365 eNews
London – 2 Feb 2023
This article was submitted to be published by Verify 365 as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
