How leading UK firms use technology with their clients

Not a day goes by without at least oneof the leading UK firms putting out a press release on how they have used legaltechnology for this or partnered with a legal tech start-up for that. So whatis the reason for this avalanche of technology-adoption marketing material andhow does the adoption of technology improve firms’ relationships with clients?

Since the recession there has been aculture shift in the legal profession as law firms respond to client pricesensitivity and the absorption of legal work by businesses. It is clear sincethe recession clients now want more for less and law firms have needed toreduce their overheads to improve their profit margins. This has primarilyincluded the reduction of floor space and non-lawyer personnel.

Not only is client pressure a key factor inthe technological change for law firms but also competition from their peersand the new breed of legal services provider, the alternative businessstructure. These pressures combined have meant law firms have needed to adoptlegal technology to reduce their overheads, differentiate themselves from thepack and provide the best possible service to their clients.

The investment in technology assistsfirms in one of two ways: it can provide a law firm with the ability to maketheir own work or processes more efficient, or give a law firm the ability tomake its clients’ legal services more efficient.

The focus for the majority, if not allthe firms, is on internal efficiency and streamlining processes. By doing thisit allows firms to supply legal services more profitably and competitively.Good examples of this include firms’ use of technology to expedite the reviewof documents or contracts, the use of automation to speed up drafting and theuse of document management systems to improve remote working.

The second use of technology relates tomaking legal services for clients more efficient. Firms are using it in avariety of different ways, including creating apps and automating theirclients’ in-house legal documents. Some firms have even created their own startup incubators to invest in and develop next big legal tech application.

Investing in technology can be hugelybeneficial to law firms. It means they can access new markets, improve servicelevels and provide clients with services which mean they can get more for less.Adopting technological solutions benefits these firms by providing them with aneasy way to make their own operations more efficient, and in tandem with fixedfees can make the legal work they supply more profitable.

Those firms that really get to gripswith legal technology can develop a culture which allows their lawyers to changethe way they do their work and try new things. Clifford Chance is a goodexample of this as it has essentially formed a business within a business whichis devoted to innovative use of technology.

The top 10 leading firms, and a select number of trend setters in the tiers below, are making great strides towards legal technology adoption and innovation. However, there are still those that have not yet fully engaged with the modernisation of the legal profession. In my opinion, the era we are in is a golden opportunity for law firms to strengthen relationships with their clients, whether you are a £billion firm or a small firm on the high street. Clients across the board want easy access to affordable legal advice. Now is the time to give it to them.

This is an abstract of the original article of the same name. The full version of this article can be found in the Modern Legal Practice journal here (subscribers only).