Legal Technology: Trends and Case Studies

The legal field has never been synonymous with speed, and that reputation has only been enhanced by the field’s reluctance to embrace new technologies and digital tools. However, in the wake of the COVID-19 pandemic, law firms are modernizing their approach.

Law firms have significantly increased their adoption of legal technology, which consists of the software, applications, and digital services they use to manage their workflow, perform administrative tasks, and automate certain processes.

Essentially, legal technology enables attorneys to perform their jobs more quickly and efficiently. For example, when case law became available on the Internet, it saved legal professionals countless hours of performing manual legal research in law libraries. If the history of legal technology has taught us anything thus far, it’s that the legal field is finally changing for the better, though it still has a long way to go.

For law firms to remain agile and competitive, they must continue to adopt legal technology and remain up to date on legal technology trends. Additionally, law firms need to make technology training a priority. According to the 2022 TechReport from the American Bar Association (ABA), 22.1% of survey respondents reported that their firm provides no legal technology training.

Historical Milestones in Legal Technology

The ability to research case law on the Internet is only one example of how legal technology has evolved over the last 30 years.

The availability of online dispute resolution (ODR), filing, and document review marked another significant leap in legal technology. All were rolled out in the 1990s. Individuals who lack transportation or who are intimidated by the courtroom process can opt for online dispute resolution, which allows defendants to go through the proceedings remotely.

Attorneys can now file their documents online instead of in person, cutting down on paper and ink use and expanding their filing hours. With digital document review, attorneys can access documents from anywhere with an Internet connection. Additionally, digital documents are easy to navigate due to the search function and other tools.

In the early 2000s, automated case management software became available, which was another major advancement in legal technology. Using automated case management software, large teams with heavy caseloads can easily see the status of a case, what’s required to keep the case moving, and any notable changes in the case.

The year 2005 marked the debut of electronic discovery—e-discovery, for short—which streamlines how documents and files get transferred prior to civil litigation. Chat histories, text messages, emails, and other documents that would typically be printed can now be sent as digital files, simplifying the process and reducing ink and paper expenses.

The increased use of digital collaboration tools is one of the most recent legal technology trends. These tools became especially relevant during the height of the pandemic. Instead of having to meet in person in a conference room, legal teams can work and collaborate remotely using platforms such as Microsoft Teams or Google Workspace. These platforms allow meetings to be recorded as well, which is beneficial for those who need to reference the meeting later or for attendees who are unable to make the meeting due to scheduling conflicts.

Current Legal Technology Examples and Their Impact

The software and digital applications that make up the majority of currently available legal technology tools have effectively streamlined an array of menial tasks and enhanced the efficiency of workflows for both legal teams and their clients. The most common legal technologies being used today include:

• Online and cloud-based document storage
• Electronic payment options
• Electronic signature options
• Digital collaboration and communication tools
• Case management software and applications
• Billable hours software
• Legal accounting software
• Legal administrative software
• Document management and automation software

Many of the office management functions fall under the rubric of legal practice management software (LPMS), which has helped firms with everything from tracking billable hours to managing leads to automating billing processes. Law firms that have invested in this kind of legal technology can complete tasks faster and more efficiently than ever before, which can increase their lawyers’ productivity, lower their costs, and enhance their clients’ experiences. Specific reported benefits of adopting digital tools and software include:

• Spending on items such as ink, paper, files, and postage is reduced.
• Productivity is increased by way of automating and streamlining menial tasks.
• Scheduling is more flexible and collaboration is easier, with virtual meetings enabling people from all over the country to come together in a centralized digital hub.
• Attorneys on the same team are more organized and on the same page about the status of a case and who is responsible for specific tasks.
• Online and cloud-based documents are easier to access and drastically cut down on the quantity of hard copy documents produced.
• Errors are reduced and the quality of work is improved.

Legal Technology Case Study Examples

Several case studies have been conducted in recent years on the adoption of legal technology trends and their measurable results. In many cases, legal firms have successfully found ways to reduce their costs, overcome logistical issues, and boost their productivity. The following case studies effectively highlight the benefits of legal technology in real-world scenarios.

• Contract review software case study: Using automated document review software known as Kira, the Minneapolis law firm Fredrikson & Byron conducted due diligence on over 500 documents well before their five-day deadline. It is estimated they cut down on their working hours by 48% and increased their due diligence efficiency by 22%.
• Timekeeping and invoicing automation software case study: Chicago law firm Wigoda & Wigoda adopted timekeeping and invoice automation software, which resulted in 20 times faster invoice distribution and reduced human errors.
• Videoconferencing solutions case study: Using a series of cameras, microphones, and video bars, Universal Connectivity, a telecommunications provider in Connecticut, was able to help a local firm seamlessly connect with its clients remotely.
• Due diligence technology case study: London-based law firm Clifford Chance was tasked with conducting due diligence for a banking client. Normally, they would send out due diligence questionnaires (DDQs) for loan documents; however, this method is inefficient and prone to errors. By adopting legal technology to automate the DDQ process, Clifford Chance achieved a 40% cost reduction and saw significant improvements in the quality of the work and a reduction in the number of errors.

Legal Technology Key Statistics

Plenty of data supports the fact that law firms are not only adopting legal technology but also benefiting from it. Following are some of the telling statistics from the past six years:

• Ascendix reports that legal technology patents have increased by 484% since 2017, a clear indicator that both supply and demand for legal tech are quickly ramping up.
• A Gartner survey conducted in 2020 revealed that 68% of attorneys reported challenges managing their workloads, which has motivated many of them to seek out legal technology that makes workflow management easier.
• HBR Consulting reported in December 2022 that 51% of law firms and legal departments plan on increasing their legal technology investments, 60% indicated having implemented a legal data analytics tool in 2022, and 26% indicated using artificial intelligence for at least one case.
• The State of Corporate Litigation Today, prepared by the Association of Corporate Counsel and Everlaw, revealed that the ability to adopt new technology is the nonlegal skill that’s the most critical for the next generation of attorneys.
• According to Clio’s 2022 Legal Trends Report, 35% of clients prefer virtual meetings while 28% prefer in-person meetings.
• According to Lex Machina’s 2022 legal analytics survey, 68% of legal professionals at law firms are using legal analytics.
• The International Legal Technology Association’s 2022 technology survey revealed that approximately 40% of lawyers and their staff have adopted cloud file storage, which was at a mere 3% in 2020.
• According to Lexion’s current state of legal tech survey, 72% of respondents believe that technology helps increase efficiencies during an economic downturn.
• As noted in Litera’s The Changing Lawyer report, 86% of surveyed respondents believe legal technology helps their firm save money. Further, 86% of respondents report that legal technology helps them complete their work more quickly while another 80% report that legal technology makes their job easier.
• The ABA’s 2022 TechReport revealed that 94% of law firms have an online web presence, which is up from 86% in 2019. Meanwhile, 57% of firms with websites report that they post about their firm’s recent successes as content, which is simultaneously a wise marketing strategy and an effective search engine optimization (SEO) tactic for improving a site’s organic ranking.

Legal Technology Trends

Following are examples of current legal technology trends and how they are expected to impact the future of the legal field.

Cloud Storage

Legal documents will increasingly be stored in the cloud for easier accessibility, sharing, and searching. The current leading cloud services among law firms include iCloud, Dropbox, and Microsoft 365. Eventually, cloud storage is expected to replace hard copy files and cabinet storage systems.

Automation

Legal teams will continue to leverage automation for contract reviews, electronic signatures, legal research, e-discovery, billing, workflow management, scheduling, risk and compliance management, and menial tasks. By automating the majority of menial tasks, legal team members will be freed up to focus on the more complex issues of their cases.

Artificial Intelligence Tools

The use of artificial intelligence (AI) will continue to ramp up with a particular emphasis on contract compliance, predictive modeling, research, and automating routine tasks. Further, more legal firms will use chatbots to collect basic information about potential clients and their cases. However, AI is one type of legal technology that’s still in its infancy. Legal teams must be careful not to become overly reliant on it, as AI has a documented track record of making mistakes when it comes to sourcing.

Legal Technology and Cybersecurity Spend

Law firms will increase their legal technology spending and investment in cybersecurity measures. With the adoption of more legal technology, law firms will need to redouble their cybersecurity efforts to protect themselves and their clients. The ABA’s 2022 TechReport revealed that only 42% of survey respondents have an incident response plan in place.

Customer Relationship Management Software

Legal teams will further adopt customer relationship management software (CRM) to help them manage their caseloads. This legal technology trend will grow quickly now that it has proven to be effective.

Digital Marketing

Law firms—especially less established ones—will continue to adopt digital marketing strategies to promote themselves to potential clients. Some of the most common digital marketing methods are social media posts, paid search advertisements, search engine optimization (SEO) in digital content, over-the-top advertisements, and email/text blasts.

Videoconferencing and Remote Meetings

Although the pandemic is over, law firms will still use videoconferencing for meetings and online collaborations. A high percentage of legal teams and clients prefer meeting remotely rather than in person because it’s logistically more convenient and eliminates the need to travel.

Data Collection and Analytics

Many law firms already have the tools in place to collect data, which means that data analytics and reporting will be used to identify the firm’s main revenue drivers, its inefficiencies, how billable hours are being used, and other useful insights.

Client Billing Structures

As they adopt more legal technology, many law firms will need to revise their client billing structure to account for their increase in efficiency and speed. The hourly billing method made sense when many legal tasks and much of the needed research had to be done manually. However, many of the legal technology trends mentioned in this section reduce the time these tasks require from hours to minutes. Per Clio’s 2022 Legal Trends Report, 67% of clients want to be billed on a flat fee basis compared to 48% who prefer to be billed hourly.

Legal Technology Companies

With the advent of so many new tools, software programs, and digital applications being used in the legal field, it’s helpful to become familiar with legal technology companies and their products and services. Here are some of the most established companies in the legal technology space.

Clio

As one of the leading legal technology companies, Clio offers a full suite of products, including law practice management, client intake and CRM, document automation, and billing and accounting software.

Lawyaw

Capable of reducing routine legal drafting time by 80%, Lawyaw is a legal document automation software that’s effective and affordable.

Luminance

Powered by AI, Luminance is one of the most advanced tools on the market for streamlining operations and processing legal documents. Available in over 80 languages, Luminance is also one of the most accessible tools.

WiseTime

WiseTime allows legal teams to retire their manual timekeeping methods and fully automate all their timekeeping. This autonomous timekeeping solution has enabled clients to increase their billable hours by up to 50%.

Dialpad

Dialpad is a helpful tool powered by AI that transcribes phone conversations between legal team members and clients and provides call transcripts and summaries.

Legalboards

Legalboards enables law firms to automate menial tasks and nonbillable work, generate reporting data, track case activity and legal operations, and more effectively manage their caseloads.

Levitate

Levitate helps law firms and attorneys streamline their marketing efforts and make connections with potential clients. The easy-to-use platform helps drive client referrals, Google reviews, prospect nurturing, and personalized correspondence using AI-powered software.

TrustBooks

TrustBooks is a legal accounting software company specifically designed for law firms and attorneys. The platform ensures compliance with the state bar, can generate customized financial reports, and enables users to manage all their accounting activities in one simple platform.

Gavel

Formerly known as Documate, the legal document automation company now known as Gavel enables online collaboration between legal team members and their clients, supports workflow management, and offers a suite of automation tools that boost productivity and efficiency.

Brightflag

Brightflag is a complete legal operations platform powered by AI technology that enables teams to manage their workflow, budgets, and reporting.

Embracing the Future with Legal Technology

Legal technology was critical to sustaining the operations of law firms and attorneys during the pandemic. Although the legal field has historically been slow to utilize modern tools and software, the adoption of legal technology out of necessity has illustrated its value. Numerous case studies, surveys, and analytical reports prove that firms that are adopting legal technology are saving time, reducing human errors, cutting costs on paper and office supplies, simplifying time-consuming and complex processes, and more effectively managing their caseloads.

However, legal technology trends are always in flux. For law firms to remain ahead of the curve, they must remain up to date on current advances in legal technology and expected future trends. Further, they must carefully vet the legal technology companies they are considering to future-proof their business operations. The value of working smarter cannot be understated. Legal firms with the right technology tools and training will naturally gain a competitive edge over firms that fail to embrace modern methods.