Report: Law Firms Still Laggards When it Comes to Technology Adoption

Almost half of legal innovation thought leaders think that the industry is below average when it comes to technology adoption. This is according to a our latest report.

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The report, which surveyed 15 thought leaders from across the legal innovation ecosystem, focuses on the changing nature of the legal industry, emerging technologies impacting the sector, factors holding law firms back, and what the future lawyer looks like.

While it’s clear that traditional law firms need to move away from ‘old law’ and start to embrace the ‘new law’ rhetoric with action, not just words, few firms are making sense of all the noise and responding in a meaningful way.

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Artificial intelligence (AI), robotic process automation (RPA), no code, and smart contracts were identified as the key technologies to look out for in coming years. On no code, Michael Lees, of the Attorney-General’s Chambers in Singapore, said that he is excited by such platforms because “subject matter experts, like lawyers, can automate much of their businesses [without the need to learn how to code].

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But numerous barriers stand in the way of paying more than just lip service to emerging technologies. Respondents sighted a lack of time provided to focus on innovation, a lack of diverse talent and innovation expertise, limited innovation budget, and a risk averse culture as key barriers to innovation and tech adoption at today’s law firms. 

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Penelope Barr of Allens Linklaters said that “Time, coupled with no compelling need to

change, continue as core barriers to real innovation breakthrough”.

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‍Meanwhile, Jonathan Patterson of DWF stressed the conflict of inherent values between the provision of legal services and innovation. “Legal professionals are trained to identify and mitigate risk. They feel like they are expected to know all the answers so there is a fear of the unknown and of failing. This means the culture and core skills of law firms often discourage radical ideas.”

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Interestingly, Caryn Sandler, Gilbert + Tobin’s Chief Knowledge and Innovation Officer, said that competition amongst law firms will extend from work to talent. “Legal service providers will need to focus on their internal policies, culture and ‘ways of working’ to win and retain talent as much as they focus on business development to win work”.

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On the topic of talent, sought after characteristics for the ‘21st Century lawyer’ include a client-centric mindset, a diverse skillset, the ability to win business no matter what level in the firm, and to essentially become a trusted advisor - somebody who is more than just a lawyer.

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The entire 43-page report can be downloaded for free from this link.