Despite historically being slower to adopt technology, the legal industry has found itself on the cusp of monumental change post-COVID-19 – with more and more firms opening NewLaw divisions or technology practices.
Automation and digitalisation will be paramount as clients demand increasingly streamlined and varied services from legal professionals. And with legal tech soaring, these executives say the time to embrace it is now.
Trends to stay on top of
“A big trend is digitalisation,” according to Peter Dombkins, director of NewLaw at PwC. In addition, he said structured data and metrics are starting to impact the way legal teams operate, as well as an increased need for legal operations specialists.
“Over 75 per cent of in-house legal teams with over 50 lawyers now have a dedicated legal operations professional,” he said.
“We’ve also got trends effecting the ways of working in a post-pandemic environment; broader, societal, technological trends. So legal trends don’t just sit in an isolated bubble.”
According to the Thomson Reuters 2021 Report on the State of the Legal Market, 76 per cent of lawyers now favour remote working, compared to just 37 per cent prior to the pandemic.
In this post-pandemic environment, legal work now includes assisting clients with COVID-19 business problems, additional risks and employment law issues.
Sean King, director of Proximity, explains that issues around mandatory vaccinations, vaccination pay, and managing a remote workforce would continue to come into play.
“[This] includes helping clients address COVID-19 business related issues such as event and travel cancellations, supply chain issues caused by material shortages or lockdowns, and insurance coverage for COVID-19 risks,” he says.
Mr King adds that looking forward, clients will also want business issues addressed, rather than strictly legal issues.
“This trend is being driven by executives across businesses, including general counsel and legal teams,” he says. Many legal clients are not only expecting a wider scope of legal services, but increased efficiency and automation, too.
Deepak Pillai, director of Clayton Utz’s forensic and technology services practice, says this expectation applies to both legal problems and business problems. “Clients are asking us if we can implement a particular tool within a business process,” he says. “This might involve the use of multiple tools and technology and traditional workflow tools that are used in the business operations side, that then connect to the legal side of things.”
Simon Quirk, innovation consultant at Mills Oakley, echoes this and says that automation, whilst not new in the slightest, is a “key trend” looking forward.
“We have seen AI and machine learning deployed in certain areas for many years. But now, we are seeing automation reaching into other areas higher up the value chain,” he says.
“Contract review, research and even generating drafts of advice are all areas where we are starting to see AI and machine learning.
“What is exciting is that we are seeing the efficiencies which clients have been demanding for many years.”
In NSW, dealings like by-law changes must now be registered with Land Registry Services via PEXA and NSW recently announced they are moving to digital certificates of title from October. David Bugden, CEO at Bugden Allen Graham, says this would be the way forward as contracts and all other paperwork are digitalised.
“In our area of speciality, property, we are continuing to see a shift towards digital contracts, electronic settlements and land dealings and we expect this trend to continue,” he says.
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<h2 class="blue">The future for firms lies in legal tech</h2>
<p>Over the last four years, Clayton Utz’s forensic and technology services practice has grown exponentially, using legal technology to help clients with their big business decisions and end-to-end solutions.</p>
<p>“We’ve brought in more people and brought in many different skillsets. What that’s allowed us to do is be able to solve more client problems, because we’ve got individuals who have got skills and experience using lots of different technologies and lots of different platforms,” Mr Pillai says.</p>
<p>He adds that as the team grows, they’re able to create solutions for clients before a need arises.</p>
<p>“I think it’s something that’s going to continue to grow within the legal industry, especially at the large legal firms. Clients want to have a solution – and it’s not just about legal problems anymore,” Mr Pillai emphasises.</p>
<p>“I think the legal teams are going to be growing their capability to the point where they can provide better services solutions technology to clients as well.”</p>
<p>Mr King says that the future for Proximity “looks bright” when it comes to an integrated business model outside of the traditional legal scope.</p>
<p>“A big part of Proximity’s future lies in our multidisciplinary and dynamic teams that bring together professional skills across legal, commercial and consulting streams including in organisation design, governance, risk management, digital transformation and project management,” he says.</p>
<p>“The key factor for us is not just employing experts in these areas, but having the organisational structure and culture that brings those people together seamlessly in integrated teams to help clients address their most pressing business issues.”</p>
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“Upskilling on tech skills will be important for many professionals, not just younger lawyers. It is an area where younger lawyers will be able to bring real value to their employers and to teach some of their more seasoned colleagues”
<p> - Sean King, director, Proximity</p>
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<p>PwC has NewLaw teams all over the world – and those teams are evolving outside of the traditional legal space, too.</p>
<p>“We started off very much around consultancy and consulting advisory, what we’re now seeing is a transition into new delivery models,” Mr Dombkins clarifies.</p>
<p>“Not only are we identifying and advising on that consultancy piece, but now we’re actually doing the delivery of it as well. It’s the integrated offering. That’s the key differentiator.”</p>
<p>Similarly, Mr Bugden says that Bugden Allen Graham wants to transition from a professional services firm to more of a technology company.</p>
<p>Earlier this year, Bugden Allen hired HWL Ebsworth partner Tim Graham, who brought his team of four with him. The <a href="#" class="a_text">appointment of the team of five</a> to the boutique marked a change to its name, formally Bugden Allen Lawyers.</p>
<p>“We want to maintain our position as the leading experts in strata and community titles by investing in our people and our own proprietary technology. We also want to be known as trusted advisors that embrace the idea of collaborating with other law firms and in-house teams to complement their capabilities,” Mr Bugden says.</p>
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<h2 class="h2-30">HWL partner takes team to boutique</h2>
<p class="f20">A now-former partner of HWL Ebsworth has joined a specialist boutique as a name partner and will be responsible for growing the firm’s strata and property presence in Victoria.</p>
<p><a href="https://www.lawyersweekly.com.au/sme-law/31688-hwl-partner-takes-team-to-boutique" class="a_link_blue">READ MORE</a></p>
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<h2 class="h2-30">HWL partner takes team to boutique</h2>
<p class="f20">A now-former partner of HWL Ebsworth has joined a specialist boutique as a name partner and will be responsible for growing the firm’s strata and property presence in Victoria.</p>
<p><a href="https://www.lawyersweekly.com.au/sme-law/31688-hwl-partner-takes-team-to-boutique" class="a_link_blue">READ MORE</a></p>
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<h2 class="blue">What type of tech are law firms using?</h2>
<p><a href="#" class="a_text">When asked how the firm intends to grow as the post-pandemic market looms,</a> Mr Bugden says that the firm’s strength “lies in our people and our technology”.</p>
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<h2 class="h2-30">‘Our strength lies in our people and our tech’</h2>
<p class="f20">Following its acquisition of a team from BigLaw firm HWL Ebsworth, boutique practice Bugden Allen Graham is continuing its growth across the country.</p>
<p><a href="https://www.lawyersweekly.com.au/sme-law/31791-our-strength-lies-in-our-people-and-our-tech?utm_source=BoutiqueLawyer&utm_campaign=01_07_21&utm_medium=email&utm_content=1&utm_emailID=6874841a8c8fa27dc5de210e7eee233394523ff7e021c3392d184cc4a30f5cc6" class="a_link_blue">READ MORE</a></p>
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<p>The firm plans to embrace the seismic shift they’re seeing towards digital contracts and self-service law by commercialising their two cloud platforms, OPEX and By-Law Builder.</p>
<p>“Our developer conveyancing team use [OPEX] to prepare, issue and digitally exchange contracts for projects in NSW, QLD and VIC. Our developer clients love it because they can give their agents and financiers access to it, plus they see in real-time the status of their sales,” Mr Bugden explains. “We have also been able to demonstrate significant time savings in getting contracts exchanged for our developer clients. ‘By-Law Builder’ is a self-service platform to get by-laws drafted into a digital format, reviewed and then registered electronically on title.”</p>
<p>Proximity uses a range of different technology, which Mr King says was spread out across a range of professional services in order to benefit the business.</p>
<p>“We look for systems that are reliable, easy to use, scalable, secure, and enable transparency through clear reporting to our clients. Great record-keeping systems are essential for the retention and sharing of our valuable IP amongst our team, as well as for secure storage and sharing of documents and data,” he says.</p>
<p>“Our most significant technology investment in the past year was in our Apex platform, which is a Professional Services Automation tool using the Financial Force and Salesforce platform that has been configured to meet our business. Apex brings together project management, resource management, opportunity managements, CRM, data analytics and business process automation; combined with typical practice management technologies such as invoicing and collaboration tools.”</p>
<p>Mills Oakley has also made a point of investing in their own tech – running regular legal services Accelerator competitions, during which staff propose their own innovative projects and are supported through the development process. If the final idea is commercialised, the successful staff member normally takes an ownership stake. Mills Oakley was the first Australian firm to conduct a legal services Accelerator back in 2016.</p>
<p>Currently, the firm’s Accelerator projects include MO Probate, a tool that enables clients to self-manage the probate process, including communication with Mills Oakley and Resolve, a mobile app designed to allow existing and new clients to manage basic debt recovery processes themselves rather than paying for a low-level service.</p>
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<h2 class="h2-30">‘Our strength lies in our people and our tech’</h2>
<p class="f20">Following its acquisition of a team from BigLaw firm HWL Ebsworth, boutique practice Bugden Allen Graham is continuing its growth across the country.</p>
<p><a href="https://www.lawyersweekly.com.au/sme-law/31791-our-strength-lies-in-our-people-and-our-tech?utm_source=BoutiqueLawyer&utm_campaign=01_07_21&utm_medium=email&utm_content=1&utm_emailID=6874841a8c8fa27dc5de210e7eee233394523ff7e021c3392d184cc4a30f5cc6" class="a_link_blue">READ MORE</a></p>
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<p>“Mills Oakley also collaborates with external developers and entrepreneurs to create new offerings for our clients,” Mr Quirk says.</p>
<p>“For example, we co-developed Argos, a platform for our superannuation clients to manage regulatory information and collaborate on regulatory change within their organisation. Argos is much more than a conventional online research tool. It is also designed to assist clients to collaborate and implement change across the business.”</p>
<p>The rise of software that can combine with other tech platforms can be seen across both SME and top-tier firms, as clients demand a more streamlined, end-to-end service.</p>
<p>Clayton Utz uses Haiku, which can initiate workflows for a large number of projects, automatically generates workflows and process documents, as well as “integrate itself with other pieces of software”, according to Mr Pillai.</p>
<p>The firm is also one of a few top-tier firms that use Josef, an Australian, no-code software platform that announced a <a href="#" class="a_text">$2.5 million funding round in May this year.</a></p>
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<h2 class="h2-30">Australian legal tech platform partners with new investors to triple funding</h2>
<p class="f20">An Australian legal tech platform has partnered with leading organisations to ensure a funding increase of $2.5 million.</p>
<p><a href="https://www.lawyersweekly.com.au/newlaw/31400-australian-legal-tech-platform-partners-with-new-investors-to-triple-funding" class="a_link_blue">READ MORE</a></p>
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<p>The legal tech platform enables lawyers and legal professionals to streamline their tasks, including lawyer-client interactions, sending emails, generating legal documents and providing legal guidance and advice. Users can automate document drafting, build bots to handle client interviews, triage paperwork or execute NDAs and instantly generate personalised documents, from letters to contracts.</p>
<p>In addition, Clayton Utz uses a combination of software to streamline both the firm’s business needs and their clients’ needs.</p>
<p>“We tend to help our clients with end-to-end solutions. Often a client will have a specific legal problem and they want to try and find some technology that can help them with that process, but they then want to embed that process within their business,” Mr Pillai says.</p>
<p>“The team can then take different tools and connect them together, such as a contract analysis tool and a workflow tool, and use platforms to connect different software together.”</p>
<p>With legal teams increasingly asked what other value they can bring to the table, Mr Dombkins says that legal teams no longer operate merely within their own confines, but are starting to branch out to other back-office teams to give clients a combined, cohesive service.</p>
<p>“A lot of this innovation is actually client led,” he says. This sentiment was echoed in the 2021 Survey of Legal Pricing and Project Management (LPPM) produced by Legal Value Network and Blickstein Group, which explored whether firms were effectively using technology and whether they understood their clients’ problems. According to the survey, 83 per cent of law firms believed they were leveraging technology to deliver more effective and cost-effective legal services. But only 52 per cent of their clients agreed. Similarly, 94 per cent of law firms believed they understood their clients’ problems, yet only 57 per cent of clients agreed.</p>
<p>However, Mr Dombkins says that whilst clients were driving innovation, law firms should avoid investing in, and using, tech in an arbitrary way.</p>
<p>“It’s tech-enabled, not tech led. It’s not technology for its own sake, it never was,” he says. “[Although], if you’ve got to review 10,000 documents, using AI to help you review those documents is going to lead to a better outcome. So, tech is definitely an enabler.”</p>
<p>As one of the biggest firms in the world, PwC uses a range of different platforms to help optimise productivity; systems to manage documentation, workflows, contract life cycle, and cases, as well as external tools for legal due diligence and discovery, automated workflow and decision-making tools, document automation tools and data analytics tools, to name a few. “All of these platforms became increasingly important when we moved to more non-traditional workspaces, as a result of COVID-19,” Mr Dombkins says.</p>
<p>“It became really important to have platforms which let people track, communicate, share data, track what they’re up to, basically non-co-located collaboration became really important. A lot of those baseline platforms that were important have just become more important.”</p>
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“What is exciting is that we are seeing the efficiencies which clients have been demanding for many years”<p> - Simon Quirk</p>
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<h2 class="h2-30">Australian legal tech platform partners with new investors to triple funding</h2>
<p class="f20">An Australian legal tech platform has partnered with leading organisations to ensure a funding increase of $2.5 million.</p>
<p><a href="https://www.lawyersweekly.com.au/newlaw/31400-australian-legal-tech-platform-partners-with-new-investors-to-triple-funding" class="a_link_blue">READ MORE</a></p>
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“What is exciting is that we are seeing the efficiencies which clients have been demanding for many years”<p> - Simon Quirk</p>
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<h2 class="blue">Staying on top of legal tech and trends</h2>
<p>In addition to the baseline platforms, PwC also has a global forum where staff can share and develop their own ideas.</p>
<p>“We’ve got a global legal tech forum, which actually discusses some of the legal tech on a global basis, with different practices from different countries sharing their experiences about different platforms,” Mr Dombkins says.</p>
<p>“There’s all sorts of stuff being developed internally as well, by us, that our teams are starting to use.”</p>
<p>Forums like these can be an extremely useful way for lawyers to stay on top of legal trends and tech, in addition to attending masterclasses and following leaders in technology.</p>
<p>Mills Oakley recently ran a technology masterclass event with over 100 people in attendance at each session – and Mr Quirk said that it’s not only about what lawyers can do to stay on top of trends and tech, but what their firms can do to help.</p>
<p>“There is often a huge amount of untapped potential in the typical law firm technology offering and it remains untapped because of cultural obstacles or just lack of awareness,” he says.</p>
<p>Mr King agrees that upskilling and remaining up to date with current trends and tech can be done by attending forums, seminars, webinars in addition to reading articles and listening to podcasts – but cautions that the enthusiasm to learn needs to be there first.</p>
<p>“Staying across legal trends is primarily about having the mindset to do so and setting aside time to achieve it,” he says.</p>
<p>“Upskilling on tech skills will be important for many professionals, not just younger lawyers. It is an area where younger lawyers will be able to bring real value to their employers and to teach some of their more seasoned colleagues.”</p>
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<p>The <a href="#" class="a_text">2021 CLOC State of the Industry report, released in May,</a> surveyed over 200 organisations across the globe and found that implementation rates across all technology areas were higher than 2020, although the top four most-used legal technologies remain the same.</p>
<p>E-signature, e-billing, contract management and document management were the top four technology areas most widely used by law departments around the world,
as they were in 2020.</p>
<p>As for what other kinds of technology lawyers will need to be well acquainted with, Mr Bugden recommends upskilling in connected software platforms, as these will be among the most valuable in the future.</p>
<p>“There’s no doubt technologies like AI and blockchain will be valuable legal tech, but I place a lot of value on the concept of a connected platform,” he says.</p>
<p>“Xero and Salesforce are testament to this – they have a marketplace where you can connect to literally hundreds of third-party applications. If I want to use OPEX for our real estate projects, Trello for tasks and projects, Dropbox for documents or HubSpot to manage my business development pipeline, then ideally these all integrate to my firm’s legal software seamlessly.</p>
<p>“Be open about trying new systems and do not just rely on your practice management software vendor – utilise free trials, sit in on demos, have a look at systems that may not be as widely used in the legal industry.”</p>
<p>Although specific types of legal tech are likely to have more value in the future than others, Mr Pillai says that what matters above all is if law firms have a NewLaw or legal tech division at all. He notes firms that do will end up bringing in more clients and producing more valuable work for them.</p>
<p>“The legal industry didn’t embrace technology compared to a lot of other industries I’ve worked in. But it’s been an interesting shift over the last four years,” he says.</p>
<p>“There’s been a lot more technology focused on that industry and targeted at clients and law firms [showing] what technology can do for supporting clients. It is an industry that was probably lagging behind, but will quickly accelerate.</p>
<p>“It’s going to be very difficult for lawyers who are not interested in it to keep abreast of all the changes in technology and what’s available.”</p>
<p>Whilst the legal industry may not have embraced technology as fast as other industries, Mr Dombkins says that that fact is quickly changing, despite the industry historically being “driven by words, not necessarily by innovations and technology.”</p>
<p>“Legal might be coming to the party late, but it can come exceptionally well-dressed. If you were waiting to get into tech, now’s the time. Now we get to play with all sorts of fancy AI and collaboration platforms, and can really start to make use and leverage the technology,” he says. “Better than we ever could.”</p>
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<h2 class="h2-30">What technologies are law departments using?</h2>
<p class="f20">New research shows the implementation rates for different types of tech by law departments across the globe.</p>
<p><a href="https://www.lawyersweekly.com.au/corporate-counsel/31449-what-technologies-are-law-departments-using" class="a_link_blue">READ MORE</a></p>
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<h2 class="h2-30">What technologies are law departments using?</h2>
<p class="f20">New research shows the implementation rates for different types of tech by law departments across the globe.</p>
<p><a href="https://www.lawyersweekly.com.au/corporate-counsel/31449-what-technologies-are-law-departments-using" class="a_link_blue">READ MORE</a></p>
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