How Digital Transformation Impacts the Legal Industry

welocalize • January 3, 2020

Are law firms and corporate legal departments prepared to support digital transformation for themselves and for their client stakeholders? The short answer is “no”, according to the “Report on the State of the Legal Market” from Georgetown Law and Thomson Reuters Legal Executive Institute.

The effect of digital transformation increasingly seeps into every area of the consumer experience. From AI to  GDPR, legal practitioners are evaluating the opportunities and implications that arise from a world fueled by more digital, more data, more risks.

Taking cues from other business sectors, the legal industry has been examining ways to leverage data and technology to better connect with stakeholders, streamline legal tasks, and create more efficient and intelligent platforms for collaboration. Park IP, a Welocalize company, addresses key topics at Legalweek and Legaltech 2020, including cloud security, standardizing the use of AI globally, and technology to drive process improvement.

Digital transformation refers to the digitization of nearly every aspect of the legal experience, including service delivery, processes, workflow, marketing, team collaboration, and client engagement.

The pace and flow of work in the traditional law firm may seem glacial in comparison to the speed and instant gratification that consumers have come to expect from the ever-present digital tools in their daily lives. Legal industry practitioners are taking note of the many digital tools now available to deliver an always-on, always-connected experience to both clients and employees. Although the human side of the legal industry remains a crucial component, digital transformation can effectively improve the delivery of legal services in practical and innovative ways.

Savvy legal teams will be able to incorporate digital solutions that will meet their most pressing needs. It’s no surprise that data management and client contact, which present plenty of challenges at the average law firm, have captured the most attention in digital transformation initiatives.

Here are some of the key initiatives:

Be prepared to manage different expectations for measuring ROI. Although traditional digital initiatives are aimed at saving money and ramping up productivity, the benefits of digital transformation may be more difficult to measure with traditional metrics. For example, deploying an app that allows stakeholders to instantly connect with lawyers will increase transparency and responsiveness – but might not necessarily deliver an easily quantifiable ROI. What’s the right measure for customer satisfaction or customer experience? How would these metrics lead to an expanded client base and lower client attrition?

Address anxiety over new technology by understanding what business problems are being solved. Although those suspicious of technology developments might fear that machine learning would replace the need for humans, in most cases this technology only frees up time spent on some of the more labor-intensive and time-consuming tasks. Data-driven decision-making adds more value in the form of solving complex queries or automating transparency through timely reporting. Those in charge of spearheading the change will want to stress the benefits to staff, such as reducing administrative cost and time, and make sure to schedule ample training opportunities during the implementation process.

Law firms and legal departments that leverage digital tools can successfully distinguish themselves from the increasingly competitive legal landscape. When used as a complement to the human factor, digital innovations can enhance productivity, cut workflow friction, and allow legal practitioners to deliver more skilled, efficient service to their stakeholders.

Contact us to meet during Legalweek or request our case study on how a global biotech company streamlines its patent prosecution process with technology and automation solution.