According to Thomson Reuters analysis, since 2017, there has been a 484% increase in the number of legal technology patents worldwide. Many law companies experience a vast increase in leads due to the implementation of LegalTech solutions.
That’s why we decided to dive more into this industry. In this blog post, we’ll analyze the market share, discuss the impact of technology on the legal industry, and explore legal technology trends.
According to the data from Statista, the LegalTech market generated revenues of 17.32 billion U.S. dollars worldwide in 2019. The compound annual growth rate (CAGR) is expected to grow over 6% for 2021-2025. By 2025, revenues will reach 25.17 billion U.S. dollars.
Speaking about the leaders in implementing legal tech solutions, the U.K. and the USA take the top places. The reasons for leadership are simple:
The U.K. and the U.S. have solid legal service industries
Both countries have several leading technology hubs
Another factor that influences the growth in market share is the enlargement of budgets law companies spend on LegalTech annually. As Gartner’s research, by 2025, legal departments will triple their spending on legal technology.
The size of the industry market signifies how impactful legal tech solutions are. But that’s not all. Apart from the enlarged revenue, there are four more benefits the technology brings to the legal industry.
Transparency and justice are two vectors the legal industry follows these days. Nowadays, clients want to:
get exact prices for legal services
track the daily progress of the lawyer on their case
analyze the performance of their lawyers in one touch.
The implementation of advanced LegalTech solutions ensures that law companies do not spend more on the case than they earn from it, making legal processes transparent.
2. Legal Tech Solutions Reduce the Cadence of Errors
No error and mistakes are allowed in the legal industry, isn’t it? Thanks to legal tech solutions, law companies and their clients can keep an eye on all the critical data (intakes, cases, clients, billings, and more) and analyze it in a significant number of ways. Having relevant data in one place helps lawyers forecast legal workflow changes and create profitable strategies that meet clients’ expectations.
3. Legal Tech Solutions Make Law Firms Transnational
It gets easier for law companies to grow in size and expand geographical reach using automated mechanisms for coordinating and controlling their operations globally.
Moreover, technology in the legal industry expands the global outlook on law practice and helps companies position themselves in an international legal services market.
4. Legal Tech Solutions Provide Fast Data Processing
The legal industry is sensitive to accurate and fast data analysis. Using tech solutions, law companies can make a high-level analysis in a few minutes (e.g., quick calculation, advanced reports, management of cases turnover, caseloads control, document management, etc.).
Fast processing of information improves the quality of legal services and prevents lawyers from routine administrative tasks.
To implement the best legal technology practices to any law firm and get the most of them, we need to walk through the latest technology trends in the legal industry.
Trend #1: The Usage of Legal Ops Becomes a Common Practice
The aim of legal operations (or legal ops shortly) is to provide companies with various activities. These activities are designed to increase the efficiency of vendor management, tech support, data analytics, clients support, etc.
By using legal ops, law firms can set goals and key performance indicators (KPIs) such as service quality, turnaround time, caseload management.
Trend #2: By 2024, More Than 50% Of Corporate Transactions at Law Firms Will Be Automated
As stated in the 2019 Gartner survey, legal departments reported that 55% of their corporate transaction work could be automated, and a third of it (33%) already was.
The hit of the COVID-19 pandemic forced such streamlined automation in the legal industry. The good news here is that the law industry is no longer resistant to new technologies. Instead, automation of legal processes is becoming trendy.
Trend #3: Artificial Intelligence as a Part of Legal Practice
Many legal tech tools incorporate AI or at least claim to do so. For the law industry, AI is no longer a threat. Instead, many companies recognize it as a beneficial tool for regulating routine tasks, minimizing mistakes, maintaining defensibility and consistency.
Yes, the adoption of new technologies in the legal industry is a continuing and complex process. However, legal technology trends signify that the industry became highly acceptable to legal tech solutions (the COVID-19 pandemic boosted the adoption process significantly).
To get more information check our blog article.