Jurisprudence plays a crucial role in today’s society and applies to a wide range of industries and niches. However, even this segment is actively modernizing, embracing contemporary legal IT solutions tailored for the legal sector to address various challenges.
The capitalization of legal technology for jurisprudence reached $27.6 billion in 2021, according to Statista analysts. They also predict that by 2027, this revenue will increase to $35.6 billion, with a CAGR exceeding 4% during that period.
These statistics clearly show the increasing popularity of legal technologies. Their effectiveness significantly enhances operational processes in legal service agencies.
The experts at AdvantISS, who are deeply involved in developing and implementing IT solutions for law firms, have compiled a piece in which they discuss a series of challenges in this segment and methods for overcoming them.
Challenges in the Industry as of 2023
Mordor Intelligence reported that the global legal industry market was valued at $752.5 billion in 2023. By 2028, this figure is expected to increase to approximately $938.65 billion. The volume of services and organizational revenue will also grow.
However, even now, legal companies are using archaic systems or manual processes in their operations. This is a key factor restraining the development of this type of business.
Among the challenges in the legal niche, the following stand out:
- Dependence on documentation.
- Communication channels.
- Company management methods.
- Client database management.
- Access to advanced technologies and information.
- Data security (especially sensitive data).
Let’s take a closer look at these and other bottlenecks in the context of the risks they pose to legal companies.
Too Much Paperwork
Even in 2023, every organization deals with paper documents. These include client agreements, internal directives, reports, schedules, etc. Such practices have several drawbacks, such as:
- Decreased team productivity due to manual handling of each document and its movement between offices.
- Increased costs for purchasing journals, paper, and office supplies like pens, markers, and stamps.
- Negative environmental impact since each sheet of paper represents a part of a tree that was harvested for profit.
Part of this challenge can be addressed through Electronic Document Management Systems (EDMS), but a complete transition away from paper should not be expected in the near future.
Analytics and Research
As of 2023, companies increasingly use Data Lakes (DL) for data collection, analysis, and management. However, this is typically done in a manual or semi-automated mode, which creates a range of problems, such as:
- Slow work with data sources, risking missing important information or insufficient processing of raw material.
- Human error undermines the efforts of professionals by allowing even minor mistakes.
- Low efficiency, as too much time is spent on data collection and analysis.
As a result, companies may opt for analytical agencies, further reducing ROI and risking delayed access to critical information.
Document Workflow Management
The legal business is more frequently adopting EDMS, but it’s not always done correctly. If the system is not properly configured, the company may encounter reduced operational efficiency, such as:
- Lower productivity due to a confusing user interface and the absence of a clear chain of digital document delegation.
- Dependence on external tools, e.g., for document signing or transfer to external partners.
- Lack of critical functionality, such as version control, change history, and a branching access system.
As a result, the team may face issues, become disillusioned with the tool, abandon it, or start searching for new systems for deployment within the company.
Communication with Clients
Phone calls and text messages, while commonly favored in the legal business, can often be inefficient. Typically, the reliance on traditional communication methods is associated with several challenges:
- Unavailability of clients at critical moments, for instance, for coordinating appearances or addressing specific questions.
- Unreliability, as people can easily lose their means of communication, forget passwords for apps, or accidentally delete their message history.
- Confidentiality risks, since information, including call records, files, and conversations, can be lost or stolen.
Legal professionals face financial and reputational risks when communication affects their work outcomes.
Laws, norms, rules, regulations – all of these are updated almost daily, and it’s physically challenging to monitor these changes. There is also a risk of losing focus and missing important information, leading to:
- Time lost in searching for and updating data, refreshing corporate databases, and informing clients.
- Revenue loss if a client loses due to missed changes, such as a court case or unmet objectives.
- Reputation damage, as lawyers must have the most up-to-date information in the legal industry.
This also applies to working with clients because their data must be constantly updated to provide quality services and monitor collaboration with them.
Companies typically use numerous IT services for law firms and tools to meet business needs, but this often leads to a series of problems that negatively affect:
- Each team member’s and department’s work productivity due to disjointed operations.
- General workflow management because there’s no centralized hub for planning and operation control.
- Communication quality and data exchange due to a lack of a configured system for these tasks.
As a result, team productivity, efficiency, and revenue decrease.
Without quality solutions for law office security, there is a risk of data loss or leaks, both corporate and client, especially sensitive data. Ultimately, this leads to quite unpleasant consequences:
- Reputation loss, as a legal company unable to protect a valuable asset, cannot guarantee client protection.
- Financial risks related to reduced profitability due to client loss or potential license issues.
- Legal problems, as the leakage of sensitive information can lead to administrative or criminal proceedings.
The only way to protect the company from such consequences is by implementing law firm IT solutions to safeguard corporate and client data.
For large legal firms, managing finances without the help of specialized professionals or dedicated digital systems can be quite challenging, leading to a range of problems, including:
- Increased costs due to poor financial management of business cash flow.
- Poor planning for short-term and long-term perspectives due to a lack of understanding of the company’s financial status.
- Reduced revenue due to non-targeted budget expenses, lack of savings, and financial operation optimization.
In the end, such a situation can lead to, at best, a break-even scenario and, at worst, financial losses and potential bankruptcy for the legal company.
Communication and collaboration processes should be streamlined within the company and with external parties, such as subcontractors, partners, and clients. Otherwise, a legal agency risks:
- Losing the productivity necessary for effective project work or client service.
- Decreasing service quality due to complex coordination with external actors.
- Losing its partner base if operational infrastructure divergence becomes too significant.
To reduce risks, the AdvantISS team can implement a high-quality IT system for law firms. With our digital solutions, you can handle all potential challenges and improve your company’s operational processes to 100%.
Managed IT Services for Law Firms that Help Companies Overcome Challenges
Every legal company assesses the impact of technological solutions on its operations differently. At AdvantISS, we encompass all aspects of agency work and comprehensively evaluate the effectiveness of implementing cutting-edge digital systems in business.
Based on our own experience working with the industry, we find that custom solutions have the most significant impact, assisting in:
- Automate internal and external processes.
- Make informed decisions on various issues, including developing legal companies and their personnel.
- Organize operations and client management.
- Update legal data critical to organizational activities.
- Organize documentation and minimize associated routines.
- Set up financial operations.
Let’s examine each of the mentioned advantages of legal IT solutions in more detail.
Automation of the Work Process
Modern digital products for the legal industry allow the use of RPA and AI for process automation:
- Sending reminders to clients about meetings, appointments, and decisions.
- Assigning task priorities for each team member.
- Planning resources, their workloads, and work segments.
- Managing document flow from a centralized hub.
- Organizing automatic payroll, tax payments, and more.
This is just a provisional list of possibilities that automation provides. Overall, it enhances the efficiency of all organization members and reduces both time and financial costs.
AI-Based Analytical Solutions
Innovative platforms with integrated tools like ChatGPT and Bard empower legal firms to make informed decisions, especially when consulting on matters related to registered patents, concepts, and other pertinent legal cases.
Furthermore, these platforms aid in data collection, analysis, and even strategic planning for the company’s legal activities within specific regions.
ERP and CRM Systems
Modern ERP solutions allow for more efficient resource management, covering up to 99% of operational, organizational, and even financial processes. Moreover, they seamlessly integrate with third-party digital products, tools, and systems, enabling legal agency staff to work within a unified operational environment.
The situation is similar with CRM systems. Such systems enable working with clients from a single dashboard, providing multi-tiered access to audience information. Additionally, CRM systems can be configured to include automated communication channels, client notifications, appointment reminders, and more.
Contemporary software solutions for data collection, analysis, and storage not only fulfill an organizational role but also protect data. They encrypt data and grant access solely to authorized company personnel.
These solutions also expedite the operations of systems utilizing database information through correct data structure, architecture, and exchange formats.
Payment and Accounting Systems
With modern products for financial transaction organization, the legal business addresses several pain points, including:
- Real-time control of the company’s expenses and revenues, enabling report generation for management and taxation purposes.
- Cost reduction through the establishment of a transparent transaction system under centralized control.
- Implementation of personalized payment services for cashless or remote payment for services.
Ultimately, these capabilities translate into profitability by streamlining accounting and transaction processes.
Document Management Platforms
Comprehensive EDMS solutions reduce the tedium associated with document workflows by up to 90%. For instance:
- The system provides multi-tiered access to documents, minimizing the risks of data loss due to intentional or accidental actions.
- The platform allows multiple experts to collaborate on a single file simultaneously, featuring version control and change tracking.
- This solution allows remote signing of documents using Electronic Signatures (ECS), even for partners not registered within the system but accessed via a special link.
With such platforms, legal professionals can bid farewell to the endless office treks in search of the responsible person and necessary signatures. However, these advantages come to life when experts, such as the AdvantISS team, implement legal business solutions.
How AdvantISS Can Deliver Expert IT Support for Law Firms
AdvantISS boasts 6 years of experience, 100 completed projects, and a 100% rating on service provider review platforms. We develop digital solutions for various sectors, including the legal field, guided by:
- Client preferences and concepts.
- Business requirements and niches.
- Our own experience.
- Cutting-edge technology.
- Innovative systems like AI/ML.
You receive high-quality digital products that cater to your legal company’s needs and enhance its efficiency through process automation and optimization.
Do you wish to stay one step ahead of your competitors? Entrust your project to the AdvantISS team!