As any student lawyer will know, legal tech is becoming an increasingly important area for firms seeking to stand out in a competitive legal services market.
Technology can improve efficiency in tasks such as document review and the drafting of standard contracts, potentially reducing costs for clients. We have previously explored the use of artificial intelligence by law firms and its potential impact on legal practice.
Legal tech is relevant across the profession, from high street and regional practices to the largest City firms. Broadly, firms are taking 2 approaches: developing technology internally or investing in external technology companies, often through an incubator model.
The internal development model
Clifford Chance is at the forefront of legal tech innovation through its Innovation & Best Delivery Strategy.
One part of this strategy is Clifford Chance Applied Solutions, an in-house developer focused on creating software to address the needs of the firm's lawyers and clients. It is headed by Jeroen Plink, who was also involved in the development of Practical Law Company (PLC).
Lawyers and clients can suggest ideas for new products, which Clifford Chance Applied Solutions can then develop.
One example is CC Dr@ft, an automated document assembly system that allows clients to generate tailored, house-style documents independently. Clifford Chance has stated that the system can reduce the time required to create certain documents by 50% to 75%.
Another example is SCMR Manager, a tool designed to assist financial services businesses with FCA registration requirements.
Linklaters has also encouraged innovation among its lawyers and staff through its Ideas Pathway scheme.
The scheme allows employees to submit ideas for improvements across different areas of the business, including areas such as agile working. Selected proposals can then receive funding to develop a proof of concept.
Linklaters has also developed technology aimed specifically at law students. Its InsideSherpa programme allows students to undertake a 5 to 6 hour virtual internship, providing exposure to areas of legal practice including legal research, client communication and project management.
The external investment model
Developing technology internally is not the only option available to law firms.
Another approach is to invest in external start-ups. By working with technology businesses at an early stage, firms can help shape products around the needs of lawyers and clients. If an investment subsequently proves successful, the firm may also benefit financially from the company's growth.
This is often achieved through an incubator model.
Startups apply to become part of a cohort that spends a defined period working with the firm, its lawyers and, in some cases, its clients. The companies use this period to develop and test their technology in a legal environment.
Successful participants may then receive further investment or opportunities to continue working with the firm.
One example is the MDR Lab operated by Mishcon de Reya.
The programme runs for 10 weeks and works with start-ups across 5 categories: litigation, transactional law, cyber, real estate and the business of law.
Alumni have included PING, which automates time recording for lawyers and provides data analysis for law firms, and Digitory Legal, a pricing prediction and management tool for litigators.
Time recording and costs budgeting are necessary parts of legal practice, but they can also be time-consuming. Automating administrative tasks therefore provides an obvious opportunity for legal technology to reduce costs and improve efficiency.
Slaughter and May has adopted a similar approach through its Collaborate programme.
The firm's first cohort of 6 start-ups was selected in 2019 to work alongside Slaughter and May lawyers and test their products in real-life scenarios.
The cohort included Tabled, a platform designed to help lawyers manage tasks and projects by automating workflows and allocating tasks to team members.
Another participant was Logiak, which allows users without coding experience to create complex logic- and rule-based systems. Such technology could, for example, be used to develop an application helping users determine whether a particular law or regulation applies in a given situation.
Why legal tech matters for junior lawyers
The growth of legal technology presents an opportunity for junior lawyers and aspiring solicitors and barristers.
Junior lawyers may be more comfortable experimenting with new technology than some more senior members of the profession. Demonstrating an understanding of legal tech can therefore help candidates distinguish themselves during recruitment.
Technical experience can also be valuable. Candidates with knowledge of areas such as coding may be able to demonstrate that they understand how technology could change legal practice rather than simply observing that change from the sidelines.
This does not mean that every aspiring lawyer needs to become a programmer.
However, candidates applying to law firms should understand how their prospective employers are responding to technological developments.
Before an interview, it is therefore worth researching the firm's approach to legal technology. If a firm has invested in an incubator, developed its own software or introduced technology into its legal services, understanding those initiatives can demonstrate commercial awareness and genuine interest in the organisation.
Legal technology is not limited to the largest City firms either.
Regional and high street practices are increasingly adopting cloud-based practice management systems, automation and other digital tools. The same technological changes contributing to the growth of virtual law firms are therefore increasingly becoming part of everyday legal practice.
For junior lawyers, the message is straightforward: legal tech is no longer something happening somewhere else. Whatever type of firm you join, understanding how technology is changing legal work is becoming an increasingly important part of being a modern lawyer.
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