Emerging Future Trends To Watch in Legal Industry
As the year 2021 advanced, and Covid-19 continued to destabilize life as we had seen it, law organizations had to keep coming up with new methods to be flexible and ready to respond to recurring difficulties as well as possibilities as they arose.
As a result, it is more important than ever to look at what developments are predicted to impact the legal industry in this year and beyond.
With the outbreak still not over, technology making significant progress, and customers’ expectations changing, there is one crucial question that every legal expert should be asking: what is next?
Rising Use of Artificial Intelligence
Artificial Intelligence is getting a lot of traction in all fields of work, and the legal field is no different. Law companies rapidly recognize the advantages of using intelligent AI to manage specific duties. As the data size grows, businesses will need to rely on technology to complement humans to expedite and optimize information systems, filing, and warehousing.
As per IndustryARC’s LegalTech Artificial Intelligence Market Forecast (2021-2026), AI will allow law firms to ramp up contract evaluation by 20% – 90% without losing accuracy. Conversely, according to Zion Market Research, the worldwide Artificial Intelligence legal tech market will be worth above $37.8 billion by 2026, with a CAGR of about 36%.
Insolvency in the Business World
The ripples of limitations and lockdowns enacted in reaction to the outbreak sent tremors across the US economic system and will simply continue to do so in coming years.
In 2020, corporate bankruptcy filings reached a record level, but in the first quarter of 2021, they were behind comparable first-quarter levels from previous years. Although there are clear indicators of economic recovery, the journey ahead will remain bumpy due to the lapse of fiscal stimulus and the uncertainty about the possibility of government support.
Greater Level of Cooperation
The COVID-19 crisis has brought to light the value of collaboration among legal firms. Law professionals who work remotely cannot approach their coworkers’ seats and pose them a query.
Instead, law firm groups want efficient and reliable virtual real-time collaboration solutions. Unfortunately, 15% of attorneys say that due to the pandemic, team cooperation has diminished, and seven in ten lawyers feel their organization has collaboration issues.
It is not all unfortunate, though. Legal firms that discover how to work together successfully reap the benefits of increased profits and customer retention. It is an arena where process automation may make a big impact, making it much easier for law firm groups to interact in real-time.
In process automation, all essential information is promptly acquired and verified at every stage of an automated procedure before proceeding. When a process alters, the system may automatically delegate duties to the appropriate staff member. Additionally, it may alert the customer of the issue’s status and add milestones to the schedule, keeping everyone on a similar level throughout the cycle.
Aside from the coronavirus outbreak, another menace expanded over the United States in 2020. As per the FBI, there were around 3,000 to 4,000 cyberattacks every day on average in 2020, a 400% increase over past years.
Most of this action was prompted by the widespread adoption of remote working. The rise in commerce conducted through insecure residential Wi-Fi networks presented hackers with an appealing opportunity.
A surge in ransomware assaults was also a troubling trend. Generally, ransomware attacks include hackers getting access to a system through a technical flaw, encrypting its essential data, and then demanding a ransom for the data’s decryption.
The legal profession is not spared from this criminality, and it is not just big firms that are at risk. In reality, 50% of all cyberattacks in the legal business are often orchestrated on organizations with less than 20 practitioners. In the last twelve months, similar hacks have targeted whole judicial systems.
Cybersecurity specialists strongly advise all legal firms to place a greater emphasis on data protection than ever. Any legal company that has not incorporated cybersecurity strategies should do so as soon as possible since this will be more typical as we approach and enter 2023.
Outsourcing Legal Services
Lawyers worldwide are searching for methods to improve the efficiency of all legal procedures and ensure that all attorneys can get tasks completed. Practical assistance can take various forms. One method that is becoming more popular in the current year is employing a technique known as legal process outsourcing.
Legal process outsourcing entails dissecting several areas of legislation and determining the most cost-effective ways to lower all associated costs. Using this type of legal assistance implies a much cheaper cost in several aspects of legal systems practice. Experts predict that this business will generate over $35 billion in annual revenue.
Many industry experts believe that this opens up new chances for individuals ready to seize them and offer the human resources that attorneys in the US and throughout the world require to execute their jobs effectively.
The legal profession has witnessed a few of the most significant changes in years, owing to several reasons, including technological advancements and customer demand.
While there were notable advances and indications of an improving economy, residual tendencies remain from the previous two years, which might continue to impact the legal environment for some time. Nevertheless, there is no denying that the last two years have hastened this change even further.
Increased technological usage in the legal business will also spur innovation. This covers things like lawyer-client privacy and legitimate processing, among other things.