Automation: Saving Time and Money for the Legal Sector?

by Kumi Sharma

The legal sector now operates in an environment where it is common to be challenged on fees, speed of service, and quality of service. The influence of the COVID-19 pandemic continues in 2021, affecting operating strategies and the ways lawyers work with clients, across the globe.

Many organisations extended their “work from home” plans as employees adopted a new normal in working remotely. These factors have increased the adoption of advanced internet technologies and cloud collaboration tools in a traditional legal workplace.

The digital revolution has no doubt transformed the way we work and live, but it comes with its challenges. A report from the United Nations International Labour Organization found that while spatial independence has made employees more productive and they enjoy a better work-life balance, it also makes them more susceptible to overwork, leading to IT burnout and technical frustration.

To overcome these challenges, many organisations are compelled to now re-evaluate the tools and systems they use and determine if they are equipped to keep their employees productive and connected over longer term. Most legal firms are increasingly investing in automation and technology platform integrations that can help with reducing employee fatigue by decreasing the volume of manual and mundane tasks a lawyer must perform in a day.

Automation is the process by which tasks, processes, or procedures are performed with minimal human assistance. For many years technology has enabled automation, changing how we live and work, and there are no signs this movement is slowing down.

The legal sector is one of many where automation is set to dramatically change how work is done. Global research giant, McKinsey Global Institute believes 23% of work done by lawyers can be automated, improving efficiency and reliability, while reducing costs, errors and time.

There are now many artificial intelligence (AI) based software solutions available to scan documents, streamline communications, and find relevant casework for lawyers. Some forward thinking law firms are also making use of the large volumes of contract information and data that law firms create, by using advanced analytics to create value for their respective businesses. This software may lead to highly skilled roles that involve automation of repetitive processes by smart and self-learning algorithms.

Most automation in the legal industry occurs in organising and searching through legal documents similar to a search engine, but with far more precision, power, insight and analysis than has been seen before. Other areas where automation is making the business of law easier include accounting, client onboarding, HR processes, generating new business leads, and more.

For example, automating drafting of legal documents can prevent errors, increase efficiency, and save thousands of hours per year, while providing a more positive experience for clients. Approvals, assignments, requests, signatures, and claims previously handled on paper can now be done digitally through this work process.

How does New Zealand prepare for the future? New Zealand has a healthy legal tech industry, but it is critical that New Zealand legal establishments understand the opportunities available to them from technology, and which their competitors are likely already leveraging to be quicker, more accurate and more cost-effective than they are.

A large part of this is researching which of the solutions available globally and locally are applicable. Many solutions solve challenges the firm didn’t know they had, and so are often overlooked. A mindset focused on innovation and openness to change is required. Adoption of such technologies in New Zealand has only taken off in the past few years, as law firms outside the large international players realise that they must adapt to survive – ignore at your peril.

Lastly and most importantly, legal establishments in New Zealand must make radical changes to the way they attract, develop and retain new talent, including assessing the profile of future ‘millennial’ employees, who are likely to be familiar with this way of working and actively encourage it.

Having a clear strategy for dealing with changes in client demands, technological innovations, the regulatory landscape and the accompanying policy developments would be of huge benefit to law firms striving to remain competitive. Companywide policy and buy-in from team members will do wonders to ensure that changes implemented are followed and embraced.

The future is here. It’s different. Let’s embrace it and move forward.