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Law firm tech investment to skyrocket
A new survey has suggested that law firms’ investment in technology will continue to soar, despite many being unsure how to properly distribute it throughout the business.
Emma Musgrave
According to BDO’s latest Law Firm Leaders Survey, 95 per cent of UK-based managing partners and senior partners said their investment in tech would increase over the next five to 10 years, with 75 per cent expecting this investment to be substantial. Despite the readiness to invest, the report also showed many firms are still not sure how to apportion the technology.
Oppositely, the advent of ‘robot lawyers’, HR and people management were the lowest-ranked business areas likely to see significant technological change, the survey found.
Further, the survey suggested that opinions vary on which functions within a firm would be most affected by the introduction and use of new technologies. In terms of directing investment, cyber security was cited most frequently as the number one investment area, followed closely by IT infrastructure, the report said.
Tony Young, partner in business services at BDO Australia, said the results coming out of the UK would resonate with local firms.
“Although the survey was undertaken in the UK, it was still relevant to the Australian market as it captures the sentiment of global law firms, many of whom have a footprint in the local market,” Mr Young said.
“By directing investment to defensive measures like cyber and IT, whilst vital, many firms seem to be losing sight of the potential offensive investment in technology to improve client experience, expand services and enhance business management systems.”
Mr Young noted two factors were found to be barriers in many leader's adoption of new technologies. The first was listed as the availability of funding to finance investment in new technologies, while the second noted “insufficient skills and expertise within the firm to ensure the correct, new technologies are adopted and embedded into the practice”.
In conclusion, Mr Young said: “Law firms need to recognise the transformative potential that new technologies can offer and recruit the appropriate people, and processes, in order to embed new technologies into their firm – especially as the LawTech market is rapidly evolving and investment in legal start-ups is on the rise.”
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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