We’re seeing new flavors of technology impact just about every part of our business lives. The practice of law is affected as well: new technology is profoundly changing the way law firms and legal departments operate.
Technology is driving globalization and is resulting in the geographic ‘spread of businesses’. This means closer monitoring of laws among many different countries at a broad level and at the same time, maintaining contractual obligations and commitments with different parties at a project level. Technology can help here too, a large number of GCs at companies of all sizes are showing greater interest in bringing meaningful legal technology solutions in order to future-proof their businesses.
In-house legal department: Long-drawn resistance to automation
The covid-19 pandemic further demands for technology enhancement among in-house legal departments, all of which tech revolutions continue to develop at breakneck speed. Rather than simply grappling to catch up with long-delayed technology investments, corporate legal leaders must build a strategy that addresses pain points for better legal and business outcomes, considering new solutions available today.
According to a recent report published by Gartner, technology will significantly reshape the workings of corporate legal departments and law firms in the coming years.
Key facts and statistics based on the Gartner survey of legal leaders:
- By 2025, legal departments will increase their spend on legal technology threefold
- By 2024, legal departments will replace 20% of generalist lawyers with nonlawyer staff
- By 2024, legal departments will have automated 50% of legal work related to major corporate transactions
- By 2025, corporate legal departments will capture only 30% of the potential benefit of their contract life cycle management investments
- By 2025, at least 25% of spending on corporate legal applications will go to non-specialist technology providers
Technology progress is inevitable.
Constant evolution is a key to success. Something like the smartphone that was a choice a decade ago is now a must for nearly everyone, they do so much more than simply keeping us connected. Technological development for coming years will stay exponential, those companies which do not perceive this as an opportunity will be left out of the system.