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Reasons for slow adoption of Legal Budget restract

The case for making strong investments in legal technology has been well articulated by those who understand this imperative in the legal industry. Putting up the case for legal tech investment is well propagated by the pioneering GCs who understand the imperative in the changing landscape of legal industry

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Legal Departments who are early adopters of emerging technology have a leg up in today’s competitive marketplace.

While legal technology has caused disruption in the industry, the trailblazers have come across countless of dismissals while pursuing the ideation strategy. This rejection is the product of disconnect caused between the innovators and the decision makers. The only way to achieve a digital transformation is to have everyone in the legal team on board, as there can be issues related to lack of awareness as well as confidence in the process of innovation.

Whether it is the GCs convincing the board or getting on board himself, the biggest hindrance in adoption of any innovative technique is the discernment regarding its quantifiable results. An innovative strategy needs more than just ideas to be implemented; it needs its selling point to justify the level of input. Where genuine returns can be proven, the incentive for innovation will be considerably higher. Even though technology in legal industry has been around for a while, its impact on the delivery of legal services has only now seen a rapid increase. An industry which has been set on experience and precedent cannot be replaced by technology but can only be enhanced in providing efficient and cost-effective services. Be it contract lifecycle, compliance or matter management, AI enabled platform can identify, analyse and extract variety of transaction requirements, or create/proof-read contracts from the clause library.

Legal technology is out there, but it’s poorly implemented

you believe you have the legal technology to do your job?

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“In 2020, the corporate value of the legal function will be determined by the speed at which legal guidance, adjusted for the business’s risk appetite, is built into strategic decision making” – Gartner

There are signs of change. More than two thirds (74%) of legal teams expect to spend more of their budget on legal technology over the next three years.

Legal tech providers have been enabling the corporate legal departments in delivering business impact by streamlining the business of law. These platforms offer an automated and integrated platform to not only manage their delivery of legal services but also meet and exceed the goals of the legal departments. They are crucial in identifying the optimal processes and resources to execute the workflows in an efficient, metric-driven, secure, and business-aligned approach.

As enterprises are rapidly evolving and adopting new business models, they are also susceptible to various underlying legal risks while protecting their core assets. As legal has been given the task of managing risk and proving value to the organisation in a budget-constraint world, they need a scalable solution with an agile strategic support, allowing them to move beyond from their traditional advisory role.

To choose and implement a tech-based solution requires a strategic planning which aligns with your business and department goals, while keeping budget/time constraints the top priority. A haphazard choice or decision can lead to solutions that do not meet your expectations, integrate with other systems and worst, and work for the legal team.

Studies of pioneering legal departments has shown a trend of prioritizing process fit and user adoption during any legal tech implementation, making them the most contented users of tech-enabled solutions.

For implementing a business-led model of Enterprise Legal Management, it is imperative to have a state of the art IT infrastructure with an enhanced integration of technology into the daily operations of corporate legal function. Being a technology averse industry, legal departments have been reluctant in adopting innovative solutions in their daily processes. But with the increasing operational demands and a generational legal-management switch, we can observe a shift in the attitudes of technology adoption among the in-house counsels.

Have you started your Journey in Legal Tech?