The legal industry is currently very competitive, and as we look to the future, it will continue to move quickly.
To streamline their operations, modern law firms must adopt new technologies. Keeping up with the most recent legal technology advancements and market developments might feel like navigating a minefield with all the options available.
In this article, we’ll discuss the significant developments that the legal technology market will experience in 2023 and how they’ll impact American law firms.
Cybersecurity remains crucial.
The demand for secure digital solutions that protect sensitive data continues to be a top issue for contemporary law firms. Since the American Bar Association has issued regulations about electronic data breaches and the protection of client information, cybersecurity is crucial for modern law businesses. Your team needs to be even more aware of the cybersecurity risks it confronts and how it may lower them as more in-house legal departments and law firms transition to hybrid or remote employment.
As a result, law firms must look into secure technology choices and provide complete compliance with all pertinent global cybersecurity and privacy legislation. Law firms and legal departments can give clients the discretion needed by maintaining compliance and lowering the danger of security breaches.
Legal tech spending is increasing.
Spending by law firms on legal technology is increasing, and this trend is anticipated to last well past 2023. By 2025, a threefold rise from 2020, legal technology spending will account for about 12% of in-house budgets, predicts Gartner.
Despite the uncertain economy, high demand for law firm technology exists. Many companies explore ways to automate administrative processes, move document storage online, boost efficiency, and accept emerging technologies and remote work. Legal technology will continue to be a crucial component of the legal sector, and law firms will continue to invest in equipment that boosts efficiency and productivity. By doing this, legal firms will be able to discover new ways to save time, automate documents, and lessen their reliance on paper-based records, which can save administrative expenses and increase productivity.
The use of legal technology is lowering operating expenses.
While investment in legal technology is increasing, law firms and legal departments are strapped for cash. Many businesses across almost all industries are looking for ways to streamline their operations and save time and effort on crucial chores because the global economy is in trouble, and the business world will continue to experience problems long beyond 2023. As a result, many legal offices will look at how to use technology to increase efficiency during the upcoming months.
Automated workflows and intake procedures are one common remedy. When appropriately implemented, automation can assist businesses in processing cases more quickly and with better results. Companies can host dynamic intake questionnaires on their websites using tools like Neos’ Intake Pro, which pre-populates the relevant forms with client information for a quicker client intake process. To reduce inefficiencies, they automate straightforward business procedures using workflows and checklists. By decreasing their administrative to-do lists, law firms reduce their operating expenses.
The use of virtual legal assistants is rising.
The legal industry may anticipate a dramatic rise in the number of virtual legal assistants who work outside the office and, as a result, require access to case data wherever they want to work, as many legal professionals and administrative workers seek to work from home.
To increase employee happiness and save operating costs, many law firms already use tech tools like cloud-based practice management software and video conferencing software. We anticipate that the legal industry will undergo further digital change as time progresses, supported by new technological developments.
Blockchain and crypto are becoming more common.
Although they are frequently utilised as an asset by investors and are still in their infancy in the digital economy, cryptocurrencies are rarely accepted as payment. That, however, is about to change as more businesses, including numerous law offices, have agreed to accept cryptocurrencies as payment.
In 2023, it’s conceivable that your business will deal with a client who wants to use cryptocurrency as payment because several significant companies in the legal sector have already adopted it. To accept cryptocurrencies responsibly, you must be aware of the risks and factors related to alternative payments. As with practise management systems that accept cryptocurrency payments for legal services or tools to exchange or store cryptocurrency for law firms, legal technology may embrace cryptocurrency.
Putting it all together
Exploring the most recent legal technology trends can help modern law firms and internal corporate legal departments make the most of the technology at their disposal.
Visit our blog, where we publish various updates for legal professionals all over the market, for additional information on the legal sector and insight into the newest legal tech solutions.
Are you interested in technology-related conferences? Well, we are in Dubai on Jan 17 & 18, 2023. You can learn, understand and explore the trending technology topics at the legal conference. Meet with legal professionals, chat with them and make new connections.