“In 2024 and beyond, instead of the big eating the small, it will be the fast eating the slow.” What we learned about legal technology from TAP on Tour, Mitratech's Partner Summit, Legalweek and more
Amid discussions about profitability as a driver of growth, changing dynamics in the legal sector, data protection and cybersecurity, rising customer expectations, and more, one key theme reemerges: the imperative of scalable innovation. I continue to do so.
ALM revealed in Legalweek that businesses are witnessing a 24% increase in average revenue and are poised for greater agility and resource optimization. But where (and how) will this investment go?
The rise of artificial intelligence (AI) and data analytics
One thing is for sure: law firms of all sizes are investing in and testing generative AI (like ChatGPT). And more importantly, many people have the resources to do so. AdvanceLaw research found that 47% of firms are testing AI, 60% of firms already have a dedicated innovation team, and there are 1.4 innovation FTEs per 100 lawyers.
From reducing lead times to understand EU-commissioned opinions and directives to streamlining the review of recurring cases (e.g. class arbitrations), AI capabilities such as text summarization allow teams to make predictions. Enhance your capabilities and knowledge management.
But while 89% of AdvanceLaw respondents report that they believe the biggest impact of technology is on productivity, our experts believe that the quality of work, especially in the areas of insights and data analytics, I think we will see big changes.
Utilizing data analytics in the legal industry
Justin Silverman, Senior Vice President and PM of Product Strategy at Mitratech, recently joined Nathan Miller of Micron Technology and Mary M. Jummati, Managing Director of Morae, to discuss on Legalweek how We discussed. These practical analyzes help drive better laws decision making. In addition to developing a strategy to ensure data completeness and accuracy, this panel of experts took a deep dive into how to establish aligned business goals and connect metrics to those goals. .
This is especially important given today's macroeconomic headwinds, with businesses facing flat budgets, rising interest rates, and hiring freezes while handling an increasing number of cases.
They need information such as:
- Why did we go over budget?
- Why were we brought to court?
- How many invoices did each lawyer keep?
Beyond just legal costs, analysis of workload and diversity metrics can help legal teams build the business case needed to drive important initiatives and decisions. And the key differentiator for top-performing companies is having all this data in one place. That's why we were thrilled earlier this year when Mitratech announced PlatoBI, a Snowflake-powered embedded analytics platform with some exciting AI and analytics enhancements. .
Navigating the realm of data analysis
Brian McGovern, Executive Director of CLC Solutions, had the pleasure of speaking with David Cowen, President of The Cowen Group, about this topic of data analytics in legal practice on the podcast Live from Legalweek.
Signs of AI and advanced analytics are literally everywhere, but with varying levels of adoption. Brian McGovern explains: “Data analysis is much broader. It's great that you can start anywhere. But there are so many places you can go.”
Here's a simple example of this scalability from a problem management perspective:
- The team first looks at the number of outstanding issues, where legal documents are located, and how much is being spent.
- The team begins to focus on how complex the problem is, where the focus is, where the risks are, etc.
- The team now has the data to start asking questions like what kind of firm are they using, should they use in-house or outside counsel, and what value are they getting?
The possibilities are endless. Experts also believe that beyond the transformative impact of advanced visualization tools and the immediate productivity benefits of better (and more accessible) data, insights about these technologies can save legal teams time. and discussed major changes in the way resources are allocated.
Fortunately, when it comes to the data spectrum, it's less about where you've been and more about where you're going. And there are ways teams can prepare. For expert predictions on where the use of AI will emerge, their thoughts on developing a comprehensive regulatory and legal framework in Europe, and more, you can watch the entire episode here.
Future direction of workflow automation
It's hard to believe that it's already been over a year since Mitratech first launched TAP on Tour. This Workflow Automation Roadshow brings together leaders and colleagues from the legal community and the United States for an afternoon of intensive workflow insights, share use cases, and learn best practices. .
In response to popular demand, the Mitra Tech team, together with our friends and partners, launched the first TAP on Tour 2024 stop of the year at KPLabs and Harbor. This event is about sharing an inside look at how teams and professionals alike are using workflows to transform their daily work, and how you can replicate that success.
Tarryn Puzsar summed up the mission of Workflow (and TAP on Tour) with three great questions.
- Where are you now?
- Where do you want to go tomorrow?
- How can workflow automation help you achieve your goals?
Deliver maximum (automation) impact
For many, it's about saving their team time, money, and sanity. That's why Mitratech's Brian McGovern also joined Prudential Financial's George Chiu and his IDEXX's Andrew Cooper for a Legalweek session to discuss where in the legal department you can find and apply automation for maximum impact. We discussed. Experts recommend looking for easy opportunities that require automation, such as tasks such as:
- High volume, repetitive, and predictable variation
- Requires back-and-forth communication to collect
correct information - Manual follow-up required
- Checklist-driven
- Lack of visibility and auditability
- I need to track data in a spreadsheet
Once you see repeat requests in your department's inbox and chat, you can meet with the “doers” of these tasks to determine which tasks meet your automation criteria or are taking up the majority of your time. Masu. Tasks such as sales agreements, contract signing, and NDAs take only a fraction of the time. All the while, you can focus on high-priority tasks instead of jumping back and forth between Drive and Sheets. Needless to say, these quick wins through automation have a huge bottom-line impact. Consider the following example.
3 minutes saved per email x 5 minutes per day x 100 people = up to $350,000 per year.
If you are interested in attending the next TAP on Tour 2024 road stop, learn more here.
Relationships are the new currency
Regardless of which side of the conversation you are on, advances in AI tools and new legal technologies will change your business, your relationships, and what we all prioritize.
ALM told Legalweek that starting next year, it envisions a future where agility and adaptability, not size, will determine success in the legal field. But speed and productivity aren't the only things at the heart of this innovation and transformation. Business intelligence and improved customer experience are rapidly becoming the biggest decision-making drivers.
In 2024, it’s all about differentiating yourself by providing advice tailored to your client’s industry and priority needs. Client-centric strategies and differentiation techniques include:
- Understand client risk appetite and competitive culture
- Keep your clients informed
- Share proactive insights/market information you discover
- be proactive
- providing education
- Building personal relationships (beyond business interactions)
Our client landscape is changing, with a focus on customized solutions, proactive engagement, and industry-specific insights to build trust and loyalty. And beyond traditional legal services, legal professionals of all stripes will increasingly leverage AI-driven analytics for predictive analytics, personalized customer experiences, and deep dives into their critical relationships. It's becoming common.
Transforming the relationship between law firms and outside lawyers
Mitra Tech's Aaron Kotoku, along with Equitable's Michael Lordi, Husch Blackwell's Angela Quinn, and Laurentian Bank's Bindu Cudjoe GCU.D, is working with Equitable's Michael Lodi, Husch Blackwell's Angela Quinn, and Laurentian Bank's Bindu Cudjoe GCU.D to manage the relationship between law firms and outside counsel. It revealed what was needed to make the change. This includes a detailed consideration of what the client wants to change (and why the law firm would like it).
Here are six signs that it's time for a change.
- Spending is spread across dozens or hundreds of companies
- Robust spending is concentrated in one practice area or type of work
- Relationship management and performance feedback vary
- Companies lack business and strategic knowledge
- Minimal financial leverage for pricing and volume discounts
- In-house teams miss out on added value
- General dissatisfaction with outside lawyers
With the right data and feedback from colleagues (particularly around diversity, innovation, quality, and communication), GCs can identify companies with a presence in low-cost markets and small businesses, allowing elite “white” You can achieve significant savings over using . -Shu Law Office. On the other hand, a high-performing outside lawyer will get more work if he or she makes a good impression on the member's girlfriend GC.
And as GenAI reshapes big laws and levels the playing field, learn more about the toolbox you need to prioritize relationship building and communication, give feedback, take action, and achieve that change. The perfect time has come.
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