Lawyers impatient for firms to invest in technology and innovation
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Clients need their firms to be fast, cost-effective and agile. However, nearly 1 in 2 lawyers said their firm is slow or very slow at implementing new technology
A recent report by LexisNexis® Legal & Professional highlights a growing demand for law firms to embrace technology and innovation. The report, Innovating the client experience: Law firms can offer much more than legal expertise, reveals that legal professionals are increasingly frustrated with slow adoption rates of modern tools and systems.
The survey of over 800 UK legal professionals found that in-house legal counsel prioritise cost-effectiveness (74%), responsiveness and agility (67%), and specialist legal expertise (44%) from their external firms. These expectations necessitate significant investment in technology and innovation. However, only 18% of private practice lawyers believe their firms are quick to implement new technology, while nearly half (47.49%) say their firms are slow or very slow in doing so.
Beyond technology adoption, firms are struggling to adapt to change and leverage data analytics effectively. Two-thirds (67%) of legal professionals rated their firm as adequate, slow or very slow at responding to change, while more than half (58%) expressed similar concerns regarding data and analytics. Outdated systems and inefficient processes further exacerbate these challenges, with more than half (52%) of private practice lawyers stating that their firm's approach to legal research is inadequate, slow or very slow. Document drafting and review were also flagged as problematic, with 45% reporting similar inefficiencies.
Many legal professionals see artificial intelligence as a potential solution to these challenges. More than half (57%) of private practice lawyers anticipate their firms will become increasingly reliant on AI for legal research and document review within the next one to three years, which could significantly streamline operations.
A failure to invest in innovation also poses a risk to talent retention. A quarter (25%) of all lawyers believe that a firm’s reluctance to adopt AI would negatively impact their careers, while 11% said they would consider leaving. At larger firms, these concerns are even more pronounced, with one third (36%) believing their careers would suffer and nearly one in five (19%) considering leaving.
Stuart Greenhill, Senior Director of Segments at LexisNexis UK, commented “To remain competitive, firms will need to deliver a superior, data-driven legal service, at the same cost or lower, and at pace – and to keep clients informed of any legal or regulatory developments. Achieving all this without the help of modern technology will be difficult. To secure client relationships, firms will need to invest in a streamlined, data-driven client offering.”