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Jan 19, 2018
Legal Tech and the Changing Legal Services Industry – Weekly Update – January 19, 2018
Quote of the Week
"The legal industry is no longer solely about lawyers, and that’s one of the principal drivers of change. Law is now a three-legged stool supported by legal, technological, and business expertise." – Mark A. Cohen, Elevate
Three Articles Worth Reading
- Deloitte Becomes the Last of the Big Four Accounting Firms to Enter the UK Legal Market
- Key excerpt: “We don’t want to replicate a traditional law firm. We’re planning to use our technology and advisory skills to transform legal services and help address many of the challenges lawyers, whether in practice or in-house, are facing in today’s increasingly complex legal environment.”
- Why it matters: The Big Four – which have traditionally been sources of work for law firms – are slowly turning into competitors. Deloitte is the last of the Big Four to set up shop in the UK, which permits alternative business structures. Law firms should expect to see further incursions from the Big Four in other jurisdictions and in other verticals.
- U.S. Law Firm to Sell AI Software to its Clients
- Key excerpt: “It’s the next logical step in the use of artificial intelligence in the legal profession,” said Dan Mulholland, senior partner at Horty Springer. “Clients would like a legal review of every contract they sign, but to do so the review has to be affordable and aligned with the speed of business. Artificial intelligence, with embedded guidance designed by lawyers, is the only way to make that consistently possible.”
- Why it matters: There’s no denying that artificial intelligence poses some threats to the way that lawyers have traditionally done business. However, the use of artificial intelligence and other technologies also presents some massive opportunities. New revenue models will be created by enterprising firms who are looking to deliver value to their clients without sacrificing quality.
- 6 Things Modern GCs really want from their Law Firms
- Key excerpt: “Even the largest law departments with sophisticated legal operations capability find it difficult to maintain currency with the latest offerings and thinking. This is a tremendous opportunity for enlightened firms willing to re-engineer, repackage and propose without prompting, new service models, alternative fee arrangements and value-add services which run the risk of disrupting their own traditional business models.”
- Why it matters: It’s not just lawyers at big firms who need to adjust to technological changes – it’s also in-house legal departments. GCs are increasingly becoming expected to reduce spending without sacrificing results. Law firms that can help their in-house counterparts navigate these changing expectations and provide value-add solutions may be rewarded with strengthened relationships and new sources of revenue.
Legal Tech Companies to Learn About
Each week, I’ll feature one legal tech company that should be on lawyers’ radars. As this is the first week, I’ve simply included a Thomson Reuters graphic outlining some (but certainly far from all) legal tech companies that are active in different spaces. Hundreds of companies around the world are building legal tech products. Some target consumers directly, some target in-house counsel and others target lawyers at law firms.
Image Source: Thomson Reuters Legal Executive Institute