The tempo of technological change over the previous yr has been quick and livid. Plainly daily there’s a brand new announcement, with authorized expertise firms rolling out generative synthetic intelligence performance into their platforms at breakneck pace. Blink, and also you’ll miss the most recent development or information launch.
Once you’re busy working towards legislation, maintaining monitor of the evolving technological panorama is difficult even in the perfect of occasions. However when there are new merchandise and options added daily together with the discharge of completely new classes of software program, sustaining your moral obligation of competence can really feel like a virtually unimaginable endeavor.
That’s the place trade surveys and studies just like the just-released LawPay and MyCase Legal Industry Report 2024 are available in. They bridge the information hole by arming you with the knowledge you have to know, enabling your agency’s success within the yr to come back.
This yr’s report was primarily based on survey responses from over 2,600 authorized professionals and offers a wealth of knowledge on trending authorized expertise points starting from generative AI understanding and adoption plans to expertise implementation hurdles, and the highest instruments that allow legislation agency success and profitability. Whether or not it’s the worth of offering versatile fee choices to shoppers or the perfect legislation agency features to outsource, this report has you coated and can present actionable information that can guarantee your selections will streamline your agency’s operations and lay the groundwork for a worthwhile 2024.
Generative AI understanding and adoption
The survey information exhibits that whereas most authorized professionals have some consciousness of generative AI, most legislation agency leaders are on the fence concerning the how, why and when of generative AI adoption. In response to the report, 63% of authorized professionals have some stage of familiarity with generative AI; nonetheless, solely 27% of respondents reported that they personally used generative AI instruments for work-related functions, and 24% shared that their companies had adopted legal-specific generative AI software program. By comparability, a mere 3% of companies had adopted client generative AI instruments, highlighting a desire for instruments designed with the wants of legislation companies in thoughts.
The highest use circumstances reported for generative AI had been brainstorming (58%), drafting correspondence (55%), basic analysis (versus authorized analysis) (46%), doc drafting (42%), drafting doc templates (39%), summarizing paperwork (38%) and modifying paperwork (34%). The report additionally contains many particular examples of use circumstances from authorized professionals that vary from trial preparation and advertising to legislation follow administration and translation.
One other attention-grabbing discovering was that respondents who had been utilizing generative AI of their practices skilled notable will increase in effectivity. Greater than half of these surveyed (53%) mentioned it elevated effectivity considerably, and for twenty-four%, it elevated considerably. In different phrases, for authorized professionals who’ve adopted generative AI and are utilizing it incessantly, their productiveness has been dramatically impacted.
There have been many issues cited that prevented generative AI adoption at this early stage. In response to the outcomes, lack of understanding concerning the expertise was a key deterrent to adoption, with 52% selecting that response. Different blockers included moral points (39%), lack of belief in generative AI output (39%), the infancy of the expertise (33%) and issues about privilege points (25%).
However the huge query is, will GAI substitute legal professionals? Survey outcomes confirmed that 28% of companies deliberate to interchange administrative features, 18% had been concentrating on legal-specific features and 13% deliberate to interchange some outsourced features. A small minority (10%) supposed to totally substitute an administrative worker, and solely 2% had been contemplating changing a lawyer with generative AI.
Methods to extend legislation agency income and entry to justice
One other key space of focus on this yr’s report was how authorized software program can enhance legislation agency profitability whereas additionally offering authorized shoppers with fee flexibility. Quite a lot of authorized billing software program options had been examined to find out how their adoption impacted productiveness and money move.
For instance, on-line time-tracking instruments had a noticeable impact on income, with authorized professionals who used a time-tracking software that passively tracked work carried out within the software program captured a further 579,665 hours over a yr, which quantities to a further $22,425 in billable hours per lawyer (assuming a conservative $330 billable-hour fee).
The info additionally highlighted how fashionable on-line funds have change into, with 78% of respondents reporting that their companies now provided this feature to shoppers. By doing so, the companies not solely supplied shoppers with a handy solution to pay for authorized payments but additionally elevated assortment charges. In the meantime, 19% reported that their companies collected greater than a further $10,000 every month by accepting on-line funds, 10% collected $8,001 to $10,000 extra month-to-month and eight% collected $6,001 to $8,000.
One other progressive method to rising entry to authorized companies adopted by some companies was “Pay Later,” a monetary software that gives shoppers with the power to defer the complete fee of authorized charges whereas rising a legislation agency’s assortment fee considerably. In response to the survey information, 19% of companies had been already providing a “Pay Later” choice to shoppers. These companies obtained full fee for authorized charges inside three days, and 46% reported by providing “Pay Later” to potential shoppers, their companies had been in a position to signal on extra new circumstances.
Key legislation agency administration software program options and outsourcing companies
Lastly, the report explored how companies are rising effectivity by leveraging superior applied sciences and outsourcing key legislation agency operational features. For instance, 58% of respondents’ companies reported utilizing legislation follow administration software program with on-line texting performance and 44% of these gained one to 2 extra hours every week, whereas one other 17% saved three to 5 hours and 9% elevated effectivity by 5 hours weekly.
One other method companies elevated effectivity was by utilizing digital receptionist companies, which allowed them to reply to potential shoppers’ inquiries at any time, day or night time. In response to the report, 19% of respondents shared that their companies employed a digital receptionist service and gained 5 or extra leads every week over a yr, whereas 21% acquired three to 5 leads and 33% obtained one to 2 leads.
Final however not least is e-filing. The info confirmed that 91% of companies can e-file, and so they profit from doing so; 34% reported a one-to-two-hour weekly effectivity enhance; 27% gained three to 5 hours; and 26% saved 5 or extra hours every week.
It doesn’t matter what your agency’s plans for expertise adoption, this report contains information that can inform your buying selections. It affords well timed insights into the effectivity drivers and development alternatives gained from adopting generative AI and different progressive instruments. This steering will support in selecting software program and companies that can lay the inspiration for legislation agency development. Whether or not it’s leveraging AI to boost productiveness or incorporating new software program into your agency that can enhance shopper service and income, you’ll discover a lot of data-driven insights to allow your agency’s strategic expertise investments in 2024.
Nicole Black is a Rochester, New York-based lawyer, creator and journalist, and she or he is senior director of material experience and exterior schooling at MyCase, an organization that provides authorized follow administration software program for small companies. She is the nationally acknowledged creator of Cloud Computing for Attorneys and is co-author of Social Media for Attorneys: The Subsequent Frontier, each printed by the American Bar Affiliation. She writes common columns for ABAJournal.com and Above the Legislation, has authored a whole bunch of articles for different publications, and repeatedly speaks at conferences concerning the intersection of legislation and rising applied sciences. Comply with her on X (previously Twitter) @nikiblack, or she might be reached at [email protected].
This column displays the opinions of the creator and never essentially the views of the ABA Journal—or the American Bar Affiliation.
