Digital technology and big data is starting to disrupt the legal landscape. While smart law firms will embrace predictive analytics as a competitive differentiator, laggards should expect to have a gun held to their heads by Gen X general counsel.
Pam Woldow, Edge International
Pam Woldow, a partner at Edge International, a US based legal consultancy for law firms and legal departments internationally, is one of the keynote speakers at the Lawtech Summit being held in Queensland in September and warns that technology is having a major disruptive impact on law firms.
The use of e-discovery technology has already made a significant mark; using computer systems to perform the grunt work once reserved for junior lawyers means firms can’t charge out for those lawyers. But the advent of big data and more sophisticated predictive analytics is starting to have an even more significant impact higher up the tree, with litigators forced to justify why a case should go to court if the technology points to that being a risky decision and that out-of court settlement would prove cheaper.
Woldow says that there is a significant turnover of in-house counsel taking place worldwide, and that the; “Younger corporate counsel have a much greater interest in technology.”
She said that technology was now being used as; “An adjunct tool for sophisticated decision making about risk in cases,” and while not yet as widely deployed as e-discovery it was starting to have an impact and impacting the revenue models of many law firms as litigation levels fell.
When Deloitte published its landmark report into Digital Disruption it noted that professional services firms such as legal practices were in the “short fuse, big bang” region of the technological disruption map – meaning the impact would be significant and soon. Technology was forecast to impact law firms in much the same way as it had disrupted traditional retail and banking business models where online upstarts have radically changed the competitive landscape.
Woldow says; “It (predictive modelling) has got a fair amount of uptake particularly by corporate counsel who want to resolve litigation because of cost constraints. There is more impetus for use by the client than the lawyer – now this gets resolved, you are not litigating and there is no bill for that. This is another paradigm shift.”
She says that smart firms are embracing the technology and using it proactively as a marketing tool to win business, in order to demonstrate to corporate counsel that the firm will only litigate a matter when predictive modelling indicates the risk of a loss is low.
In contrast “Some only use it when their clients put a gun to their head,” she said.
Woldow says that over time the adoption of new technology would not only force law firms to reform their revenue and profit models, but would also lead to segmentation in the profession, with many litigators taking on more of a dispute negotiation role with far fewer experienced trial lawyers being available in the future.
About the Lawtech Summit and Awards:
Now in its ninth year the Lawtech Summit and Awards brings together the IT leaders of law firms to explore the changes in technology and its power to enable innovation, best practice and efficiency. The event also recognises technology leaders in the sector with the highly prized Lawtech awards. This year’s event will be held on 11-12 September at the QT Hotel on the Gold Coast. Further information is available at http://www.lawtechsummit.com.au/9Lawtechsummithomepage.
About Chilli IQ: The Chilli IQ partnership focuses on the delivery of exceptional quality events, attracting the highest calibre of local and international presenters for its conferences. Chilli IQ leads the field in efficient and effective knowledge delivery and is constantly evolving to satisfy the needs of its expanding audience.
For further information please contact Chilli IQ’s George Katrivesis on 02 9818 6566.
Author information
The post Technology disrupts legal market – smart firms seize control appeared first on Asia Law Portal.