This year, certain legal tech trends are expected to gain momentum and revolutionize the way legal services are delivered. As a managing partner at a law firm, you need to stay on top of these trends so you can effectively leverage technology to enhance your operations and gain a competitive edge.
Here are some of the top legal tech trends of 2023 that you should be aware of:
1. Soaring investments in hybrid work technology
The Wolters Kluwer Future Ready Lawyer Survey 2022 revealed that 72% of law firm lawyers expect to fully or partially work from home. Given this, law firms will continue to invest in IT solutions that foster remote collaboration and communication.
Cloud-based data storage solutions and collaboration platforms are vital in enabling legal professionals to access and share documents, collaborate in real time, and manage cases from any location. Meanwhile, high-quality video conferencing and online communication tools will help law firms facilitate productive client meetings, negotiations, and court proceedings.
2. Increasing use of data analytics to track legal spending
Amid inflation and interest rate hikes in the United States, law firms will increasingly rely on data analytics to inform their legal spending. Data analytics gives law firms access to real-time dashboards and customized reports on their legal expenses.
With data analytics, law firms can analyze their historical spending patterns and compare these to outcomes achieved. This enables them to identify trends, evaluate strategic efficiency, and optimize resource allocation, helping them make the necessary adjustments to ensure financial stability.
3. Growing adoption of workflow automation
Law firms are increasingly embracing workflow automation to enhance productivity and lower expenses. By leveraging this technology, legal professionals can automate repetitive non-legal tasks, such as marketing, billing, client communications, and accounting. This allows them to reclaim valuable billable hours and concentrate on legal work and other important tasks.
4. Rise of artificial intelligence (AI)
Over the years, compliance requirements in the US have been growing in number and complexity. This has significantly increased the volume of documents that lawyers need to review, such as those related to litigation risk management, internal policy control, and mergers and acquisition (M&A) activities. While tedious, this document review process demands just as much attention as lawyers’ strategic and analytical work.
To find a middle ground between hiring more lawyers and relying on costly external counsel, more law firms will embrace AI solutions for:
- Identifying contracts with non-market or nonstandard terms
- Scanning large volumes of eDiscovery to highlight priority areas to review, resulting in faster risk assessment and case progression
- Gathering data from business units to generate business reports, prepare audits, and provide necessary information for regulatory compliance and due diligence in M&A transactions
By harnessing the power of AI, law firms can streamline data management and increase efficiency and accuracy. In fact, the global legal technology AI market is projected to reach up to $37 billion by 2026.
5. Greater emphasis on cybersecurity and data privacy
Due to the sensitive information that law firms handle, they are constantly at risk of cyberattacks and data breaches. The transition to remote and hybrid work environments, along with the increasing reliance on technology, has made it more challenging to safeguard sensitive information.
In 2021, 17% of US law firms with two to nine attorneys and 35% of US law firms with 10–49 attorneys reported a cybersecurity breach. This is why law firms must implement robust cybersecurity measures, including preventative controls, secure data sharing processes, and comprehensive incident response plans.
Take your law firm to the next level with predictiveIT. We have over 19 years of experience helping law firms around Tampa Bay transform their IT infrastructure into an asset and we’re ready to do the same for you. Book an appointment with us today.
