The tempo of technological change over the previous 12 months has been quick and livid. Evidently day-after-day there’s a brand new announcement, with authorized know-how 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.
While you’re busy working towards legislation, holding observe of the evolving technological panorama is difficult even in the perfect of instances. However when there are new merchandise and options added day-after-day together with the discharge of solely new classes of software program, sustaining your moral obligation of competence can really feel like a virtually inconceivable endeavor.
That’s the place trade surveys and stories just like the just-released LawPay and MyCase Legal Industry Report 2024 are available. They bridge the data hole by arming you with the knowledge you should know, enabling your agency’s success within the 12 months to come back.
This 12 months’s report was based mostly on survey responses from over 2,600 authorized professionals and supplies a wealth of data on trending authorized know-how points starting from generative AI understanding and adoption plans to know-how 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 purchasers or the perfect legislation agency features to outsource, this report has you lined 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. Based on 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 shopper generative AI instruments, highlighting a desire for instruments designed with the wants of legislation companies in thoughts.
The highest use instances reported for generative AI had been brainstorming (58%), drafting correspondence (55%), normal 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 instances from authorized professionals that vary from trial preparation and advertising to legislation apply 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 regularly, their productiveness has been dramatically impacted.
There have been many considerations cited that prevented generative AI adoption at this early stage. Based on the outcomes, lack of information concerning the know-how 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 know-how (33%) and considerations about privilege points (25%).
However the large query is, will GAI change attorneys? 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%) meant to completely change 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 12 months’s report was how authorized software program can improve legislation agency profitability whereas additionally offering authorized purchasers with fee flexibility. A wide range of authorized billing software program options had been examined to find out how their adoption impacted productiveness and money circulate.
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 finished within the software program captured an extra 579,665 hours over a 12 months, which quantities to an extra $22,425 in billable hours per lawyer (assuming a conservative $330 billable-hour price).
The info additionally highlighted how well-liked on-line funds have turn into, with 78% of respondents reporting that their companies now supplied this selection to purchasers. By doing so, the companies not solely supplied purchasers with a handy method to pay for authorized payments but in addition elevated assortment charges. In the meantime, 19% reported that their companies collected greater than an extra $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 revolutionary method to growing entry to authorized providers adopted by some companies was “Pay Later,” a monetary software that gives purchasers with the flexibility to defer the complete fee of authorized charges whereas growing a legislation agency’s assortment price considerably. Based on the survey information, 19% of companies had been already providing a “Pay Later” choice to purchasers. These companies acquired full fee for authorized charges inside three days, and 46% reported by providing “Pay Later” to potential purchasers, their companies had been in a position to signal on extra new instances.
Key legislation agency administration software program options and outsourcing providers
Lastly, the report explored how companies are growing effectivity by leveraging superior applied sciences and outsourcing key legislation agency operational features. For instance, 58% of respondents’ companies reported utilizing legislation apply 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 manner companies elevated effectivity was through the use of digital receptionist providers, which allowed them to answer potential purchasers’ inquiries at any time, day or evening. Based on the report, 19% of respondents shared that their companies employed a digital receptionist service and gained 5 or extra leads every week over a 12 months, 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, they usually profit from doing so; 34% reported a one-to-two-hour weekly effectivity improve; 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 know-how adoption, this report contains information that can inform your buying selections. It gives well timed insights into the effectivity drivers and development alternatives gained from adopting generative AI and different revolutionary instruments. This steerage will assist in selecting software program and providers that can lay the muse for legislation agency development. Whether or not it’s leveraging AI to boost productiveness or incorporating new software program into your agency that can improve consumer service and income, you’ll discover a number of data-driven insights to allow your agency’s strategic know-how investments in 2024.
Nicole Black is a Rochester, New York-based lawyer, writer and journalist, and he or she is senior director of subject material experience and exterior training at MyCase, an organization that gives authorized apply administration software program for small companies. She is the nationally acknowledged writer of Cloud Computing for Attorneys and is co-author of Social Media for Attorneys: The Subsequent Frontier, each revealed by the American Bar Affiliation. She writes common columns for ABAJournal.com and Above the Regulation, has authored lots of of articles for different publications, and usually speaks at conferences concerning the intersection of legislation and rising applied sciences. Observe her on X (previously Twitter) @nikiblack, or she might be reached at [email protected].
This column displays the opinions of the writer and never essentially the views of the ABA Journal—or the American Bar Affiliation.