Over the last couple of years, we have seen an increase in the adoption of legal technology. But this particular slow crawl towards the digital world was driven more by profit.
When the COVID-19 pandemic hit, however, it sent the legal industry into a scramble for survival. Overnight, the use of legal technology became a necessity.
In which direction is the legal software market moving, and is the legal industry likely to revert to its archaic habits? Let’s find out.
1. The market will continue growing
When it comes to the rise in the use of lawyers software, the escalation of the global legal technology market is not a surprise.
According to a study published by Growth Market Reports, the legal research software market (a $406.1 million market in 2019) will grow by 16,9% by 2027. North America will stay on top of the market, while software vendors in Europe are en route to expand their market and turn this region into a significant player as well.
The growth trend also applies to the Asia Pacific market, which will expand at a rapid pace during the forecast period.
Similar growth is expected in the North American legal case management software market. Research by The Insight Partners revealed that this market, currently worth $408.47 million, will grow 12.1% by 2028 and be valued at $906.12 million.
2. A move towards cloud-based solutions
Even though cloud-based software has been around for a while, legal professionals were reluctant to abandon their familiar on-premise solutions. But with remote working becoming a necessity, the ball rolled further in the direction of the cloud.
In a 2021 Capterra survey, 56% of legal professionals reported that half of the software they use is cloud-based.
However, a factor that might tip the balance even further in favor of cloud-based software is the lower cost compared to an on-premise solution, something that smaller law firms will probably appreciate.
3. More investments in cybersecurity
Working online does come with a great deal of risk. Security is of utmost importance in the legal industry due to the fact lawyers are dealing with a lot of confidential data.
The good news is that the threat of cybersecurity has been recognized by many firms, which led to investments in data security. Today, more law firms are trying to safeguard sensitive data with the help of IT services that can assist them in security awareness training, risk assessment, and security plans and policies.
4. Growing efforts to increase efficiency
Law firms will continue investing in solutions that simplify repetitive processes and automate routine tasks to cut costs and deliver faster service.
You can see the benefits of advanced legal technology in action by looking at how small law firms use contract review software.
With software that automatically highlights the key details, double-checking every term of a contract can be accomplished in a fraction of the time. It can also automatically fix issues with formatting, numbering, and bulleting in your legal texts.
5. Technology that improves the client experience
Forward-thinking law firms are becoming more aware of what the clients expect from up-to-date legal service providers.
Software that enhances client satisfaction is becoming even more prevalent now with different kinds of software such as legal chatbots. These apps can handle simple inquiries and complete the client intake process.
Another significant development is legal practice management systems that offer client portals that take the lawyer-client relationship to a new level.
A client portal is available 24/7 and allows your customers to check up on the progress of their cases quickly. Communication is significantly streamlined, and this collaborative approach is something that most clients will appreciate.
An unstoppable wave of innovation
While the legal market continues to grow, powerful technology levels the playing field and helping small law firms compete with giant corporate legal departments.
Why does it all matter?
If you want to be successful and avoid falling by the waysides, you don’t have any other choice but to keep up. Success is in the books for everyone, but only if they join the unstoppable wave of innovation happening in the industry as we speak.