Law tech describes the technology that the legal industry is developing to make its operating methods more efficient. This technology can refer to AI across a range of contexts and new chatbot software amongst other things. Legal tech is important for improving service and – unsurprisingly – 2017 saw a 484 per cent increase in the number of legal technology patents worldwide. Read on to find out what this means for the legal industry and those within it.
Benefits of legal tech
For a start, legal tech makes streamlines operations for law firms. With automated workflows, it’s easier for firms to direct their resources toward expansion. This makes it easier for law firms to grow and extend their reach internationally. Meanwhile, legal tech can also facilitate global expansion by making it easier to control operations globally.
But clients also benefit from legal tech too. One of the best uses of legal tech is that it can make the legal process more transparent. Legal tech can allow clients to track the day-to-day progress of their lawyer, the price they’re paying and the progress of their project. This can make pricing schemes fairer and facilitate greater trust between client and firm.
What’s more, legal tech can also help firms analyse and work through vast amounts of data extremely quickly. This can improve the quality and precision of legal services while ensuring that lawyers and firms don’t have to waste their time with routine administrative tasks.
Artificial tracking systems are a particularly useful form of legal tech. They can analyse all the information within the firm at a touch of a button. This can then be used to create more profitable business strategies.
Market share of legal tech
Naturally, given these benefits, there are signs that the market share of legal tech is expanding. For a start, the annual compound growth rate is expanding, while companies’ legal tech budgets are expanding. Indeed, per Statista, the market is forecasted to grow at a compound annual growth rate of over 6 per cent for the period of 2019-2025. Plus, in 2019, the legal tech market generated revenues of 17.32 billion U.S. dollars worldwide. As a result, the market share of legal tech is predicted to grow significantly in the coming years. You can expect law firms to pivot much of their spending towards legal tech in a bid to catch up.
Legal tech can make operations much simpler for your firm, plus it can benefit clients who enjoy smoother service. If you require legal tech solutions, then hiring a law firm at the cutting edge of the latest technology can benefit you today and in the long term too.