In the last year, revenue generation from the legal services was up about 6%, and now in the coming days, legal and compliance leaders are adopting the latest legal trends. Nowadays, Legal and compliance expertise can choose for countless technology solutions to make it more easier in their key mandates for risk management and provide the business’s digital transformation. Few of them are adopting, but the tech market place is full of innovations to watch in automobiles, analytics, artificial intelligence, and other emerging technologies.
One of the experts from the legal tech world has stated that Companies must invest in legal technology more aggressively — but more importantly, they must spend more effectively. “Otherwise, Function of legal and compliance will remain a drag on productivity and responsiveness.”
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Trend 1: The increase in virtual legal assistants
Some of the sources have predicted that by 2023, virtual legal assistants (VLAs) will be 25% of internal requests to legal department’s at large enterprises, increasing operational capacity for in-house corporate teams.
Now in the future, a Legal department automates to improve efficiency and lower response time. The techmarket place is filled with solutions to replace human resources, but these tools cann’t automatically accommodate a given organization’s unique legal requirements or workflows. Legal and compliance experts might adopt the specific operational capabilities they want to improvise when evaluating tech opportunities.
Effective use of Virtual Legal assistants or chats bots depends on corporate legal and compliance leaders who are playing an active responsibility in the configuration. VLAs, or AI-powered chatbots, might be set up in the coming years to increase the volume of internal questions that the legal department I expecting and, at the same time reducing response time and the need for human interaction. Therefore, this need depends on the on corporate legal and compliance leaders playing an active role in the configuration or creation of these tools to meet their company’s specific needs.
Trend 2: Filling the legal technology expertise gap
By 2023, more than 30% of corporate legal departments will have a dedicated legal technology expert to help the increasing automation of core in-house workflows. In today’s world, there is a large delta that exists in legal departments between those who know legal matters and workflows and those who understand technology. Dedicated legal technology experts — or those who have a good understanding of both legal service and technology — will be a crucial role for legal departments to improve performance. Leaders will need to hire and develop these roles to close the gap.
Trend 3: Increase in coordination for third-party risk management
It is also researched and predicted that in the coming year’s firms expending on technologies for third-party risk management to support due diligence and monitoring will increase by 50%. Digital business transformation increases the risks associated with third parties. Third-party risk management (TPRM) today is segmented across legal, compliance, privacy, procurement, supply chain, quality, finance, and IT. Talking Further, the organization together must pull the ownership structure for TPRM and force consolidation of the TPRM technology and service provider marketplace. This consolation will enable organizations to have a unified view of risks.
Trend 4: Increasing investment in privacy technology
According to the research report, there will be a 150% increase in internal legal counsel investment for dedicated solutions to handle subject rights requests on behalf of clients. An increase in privacy regulations, like the Global Data Protection Regulation (GDPR) in Europe or California’s Consumer Privacy Act (CCPA), has created a rise in several subject rights requests. The number of subject rights applications is about to increase and current processes take a long time and require too many resources.