Legal Tech’s Predictions for AI, Workflow Automation, and Data Analytics in 2024
“In 2024 and beyond, it’s no longer the big who eat the small, but the fast who eat the slow;” our legal tech learnings from TAP on Tour, Mitratech’s Partner Summit, Legalweek, and more
Amid discussions on profitability as the engine of growth, the changing dynamics within the legal space, data protection and cybersecurity, and heightened client expectations, one resounding theme continues to reemerge in recent conversations: scalable innovation.
ALM revealed at Legalweek that firms are witnessing a 24% increase in average revenue, setting the stage for more agility and resource optimization. But where (and how) are these investments going?
The Rise of Artificial Intelligence (AI) and Data Analytics
One thing is for certain: legal firms of all sizes are investing in and testing Generative AI (like ChatGPT). And more importantly, many have the resources to do so. An AdvanceLaw survey found that 47% of firms are testing AI, 60% of firms already have a dedicated innovations team, and there are 1.4 innovation FTEs for every 100 lawyers.
From shortening the lead time it takes to comprehend an EU-commissioned opinion or directive to streamlining the review of recurring litigation (like mass arbitration, for example), AI capabilities like text summarization are empowering teams with predictive abilities and enhanced knowledge management.
But while 89% of those AdvanceLaw respondents report thinking that technology’s biggest impact will be on productivity, our experts believe quality of work will also see a significant shift – particularly in the area of insights and data analytics.
Leveraging Data Analytics in the Legal Industry
Justin Silverman, SVP, Product Strategy and PM at Mitratech, recently joined Micron Technology‘s Nathan Miller and Mary M. Jummati, Managing Director at Morae, for a Legalweek discussion on just how those actionable analytics can help drive better legal decision-making. Beyond having a strategy in place to ensure the completeness and accuracy of your data, this expert panel dove deep into how to establish aligned business objectives and tie metrics to those goals.
This is especially important given today’s macroeconomic headwinds, where firms are facing flat budgets, rising rates, hiring freezes, etc, while also seeing the number of matters they are handling increase.
They need information like:
- Why did we go over budget?
- Why did we go to trial?
- How many invoices sat with each attorney?
Going further than just legal spend, analytics on volume of work and diversity metrics can help legal teams make the business case they need to drive important initiatives and decisions forward. And a key differentiator of top-performing companies is the ability to get all of this data in one place, which is why Mitratech was thrilled to unveil PlatoBI, an embedded analytics platform powered by Snowflake, earlier this year with several exciting AI and Analytic enhancements.
Navigating the Spectrum of Data Analytics
Our very own Brian McGovern, Executive Director of CLC Solutions, had the pleasure of speaking with David Cowen the President of The Cowen Group during a “Live from Legalweek” podcast on this topic of data analytics in legal.
While the signs of AI and advanced analytics are everywhere (literally), adoption levels vary. As Brian McGovern explains, “Data analytics is more of a spectrum. You can start where you are, which is great. But there’s a lot of places you can go.”
Here’s a quick example of this scalability through the lens of matter management:
- Teams start by looking at how many matters they have open, where their legal documents are, and what their spend is
- Teams begin to focus on how complex their matters are, where are they focused, where the risk is located, etc.
- Teams now have the data to begin asking questions like: what firms am I using, should I be using in-house or outside counsel, and what kind of value am I getting?
The possibilities are endless. And beyond the transformative impact of advanced visualization tools and immediate productivity benefits of better (more accessible) data, the experts also discussed the profound shift these technology insights will have on how legal teams allocate their time and resources.
Luckily, when it comes to the data spectrum, it’s less about where you’ve been and more about where you’re heading. And there are ways your team can prepare. You can tune into the full episode here for our expert’s predictions for where AI use will emerge, their thoughts on the development of a comprehensive regulatory and legal framework in Europe, and more!
The Way Forward for Workflow Automation
It’s hard to believe it’s already been over a year since Mitratech first kicked off TAP on Tour, our workflow automation roadshow that brings leaders and peers across the legal community and U.S. together for an afternoon of immersive workflow insights, use case sharing, and best practices.
Back by popular demand, the Mitratech team just kicked off our first TAP on Tour 2024 stop of the year alongside our friends and partners over at KPLabs and Harbor. The event is all about sharing an inside look at how teams and experts alike are transforming everyday tasks with workflow — and how their successes can be replicated.
Tarryn Puzsar summed up the mission of workflow (and TAP on Tour) with three great questions:
- Where are you currently?
- Where do you want to be tomorrow?
- How can workflow automation help you get there?
Making the Biggest (Automation) Impact
For many, it’s about saving your team time, money, and sanity. Which is why Mitratech’s Brian McGovern also joined Prudential Financial‘s George Chiu and IDEXX‘s Andrew Cooper in a Legalweek session to discuss where you can find and apply automation in your legal department to make the biggest impact. The experts recommend looking for easy opportunities that call out for automation, like tasks that:
- Are high-volume and repetitious, with predictable variations
- Require back-and-forth communication needed to gather
the right info - Require manual follow‑ups
- Are checklist-driven
- Have a lack of visibility or auditability
- Require you to track down data in spreadsheets
Once you review your department inboxes and chats for repeat requests, you can meet with the “do-ers” of these tasks to determine which tasks meet the automation criteria or take up the bulk of their time. Tasks like sales agreements, contract signing, NDAs, and more can take a fraction of the time. Meanwhile, you can focus on higher-priority work rather than jumping between drives and spreadsheets. Not to mention, there’s a substantial bottom-line impact for each of these quick wins with automation. Consider the following example:
3 minutes saved per email x 5 minutes per day x 100 people = ~$350K annually.
If you’re interested in catching our next TAP on Tour 2024 road stop, learn more here.
Relationships Are the New Currency
Regardless of what side of the conversation you’re on, AI tools and emerging legal technology advancements are going to change your business, your relationships, and what we all prioritize.
ALM shared at Legalweek that in the coming year and beyond, they envisage a future where agility and adaptability, rather than sheer size, determine success in the legal domain. But speed and productivity aren’t the only things at the heart of all of this innovation and transformation. Business intelligence and a better client experience are quickly becoming top decision-drivers.
In 2024, it’s all about differentiating yourself by giving advice tailored to your client’s industry and priority needs. Some client-centric strategies and differentiation techniques include:
- Understanding your client’s risk appetite and competitive culture
- Keeping your client informed
- Sharing proactive insights/market intelligence as you find it
- Being proactive
- Providing education
- Building personal relationships (going beyond transactional interactions)
Our shifting client landscape emphasizes tailored solutions, proactive engagement, and industry-specific insights for building trust and loyalty. And beyond traditional legal services, it’s becoming increasingly common for legal professionals everywhere to leverage AI-driven analytics for predictive analysis, personalized client experiences, and a closer look at their own key relationships.
Transforming Relationships Between Legal and Outside Counsel
Mitratech’s Aaron Kotok joined Equitable‘s Michael Lordi, Angela Quinn of Husch Blackwell, and Laurentian Bank’s Bindu Cudjoe, GCU.D to unpack what it takes to transform relationships between legal and outside counsel. including a closer look at what clients hope to change (and why law firms should love it).
Here are six telling signs that it may be time to time for a transformation:
- Spend is spread across tens or hundreds of firms
- Firm spend is focused on one practice area or type of work
- Relationship management and performance feedback varies
- Firms lack business or strategic knowledge
- Minimal financial leverage for rates and volume discounts
- In-house teams miss out on value-adds
- General dissatisfaction with outside counsel
With the right data and peer feedback (specifically surrounding diversity, innovation, quality, and communication), GCs can identify firms with a presence in lower-cost markets, and/or at smaller firms, generating significant savings over the use of elite ‘white-shoe’ law firms. Meanwhile, top-performing outside lawyers win more work if they impress member GCs.
And since GenAI is reshuffling Big Law and leveling the playing field, the time is right to prioritize relationship-building and communication, give and implement feedback, and learn more about the toolbox you need to achieve that transformation.
