Hello legal innovators! This month, we’re diving into:
- Blast from the Past: A Look Back at What the Future Held for Lawyers in 2005
- A Rock-and-roll interview with Bill Deckelman, Executive Vice President and General Counsel of DXC Technologies
- How Legal Tech Is Driving Cost Savings in Corporate Legal Departments
- The Fable of StarBucks
- The Future of Legal Pricing: Can AI Finally Disrupt the Billable Hour?
But first, here are our key takeaways this month:
- Legal tech is becoming an essential component for law firms, enhancing cost efficiency and streamlining workflows.
- Generative AI is challenging traditional pricing models, encouraging a shift towards value-based pricing.
- Staying true to your brand’s core values is critical, as seen in both the legal industry and broader corporate cases like Starbucks.
- Predictions from 2005 about internet-driven legal research have been surpassed, showcasing the transformative impact of technology on legal practice.
- Transparency and collaboration between law firms and clients are becoming indispensable as the industry navigates rapid technological changes.
Now, let’s jump right in!
Blast From The Past: A Look Back at What the Future Held for Lawyers in 2005
In this edition of our “Blast From The Past” series, we examine a 2005 article from Cambridge University Press that forecast the future of legal practice.
Key Takeaway: The legal tech revolution has not only met but significantly surpassed the predictions made in 2005, demonstrating the exponential pace of technological advancement in the legal sector.
The article, written nearly two decades ago, accurately predicted several trends we see today:
- Increased reliance on computers and digital tools for legal tasks
- Internet-driven changes in communication, research, and dispute resolution
- Online marketing for law practices
- Automation of document processing and financial tasks
- Integration of digital tools into lawyers’ daily workflows
Interestingly, the article suggested that over the next 20 years (i.e., by 2025), technology would transform legal practice “in ways beyond imagination.” This prediction has proven remarkably accurate, with current advancements indeed surpassing what many could have envisioned in 2005.
However, the article underestimated the pace and extent of technological adoption, predicting that “by 2010, most legal tasks would be supported by computers and digital tools.”: It seems fair to say that computers are omnipresent in today’s legal industry.
The article’s prediction of “smaller, more powerful computers” seems almost quaint now, as we’ve moved beyond mere miniaturisation to ubiquitous, cloud-connected devices that put the power of an entire law library in our pockets.
(We can imagine the bemusement of a 2005 lawyer transported to today: “You mean I can review a contract, conduct legal research, and attend a court hearing… all from my phone? While on vacation in Bali?”)
Call to Action: Reflect on how your legal practice has evolved since 2005. Are you fully leveraging the technologies available today? How is your legal practice preparing for this technological shift? Are you as a legal department or law firm fostering transparency and collaboration with one another?
Rock-and-roll interview series: Bill Deckelman, Executive Vice President and General Counsel of DXC Technologies
Bill Deckelman, former General Counsel of DXC Technologies, shares his insights on the future of legal services and client-firm relationships.
Key Takeaway: Transparency and collaboration between law firms and clients are crucial as the legal industry faces a transformative shift within the next five years, driven by generative AI and other technologies.
Deckelman argues: “I think what they do need to get is transparency and collaboration. Those are the two words. Law firms and clients need to engage with each other and start experimenting, piloting, doing some use cases and working together and learn together.”
On the future of the legal industry, Deckelman states: “I really do know it’s going to completely change the industry, whether that’s in private practice or in-house counsel or also for the providers of legal services in general. I picked five years as kind of a safe prediction to say within five years, we won’t really recognise the way we’re practicing law today.”
He emphasises improved quality and efficiency: “I think the quality is going to be so much better, not to mention you’re going to lose a lot of the drudgery that has gone along with having to do things so manually in the past.”
Call to Action: How is your legal practice preparing for this technological shift? Are you fostering transparency and collaboration with your legal partners? Consider ways to start experimenting with new technologies to stay ahead of the curve.
How Legal Tech Is Driving Cost Savings in Corporate Legal Departments
Key Takeaway: A recent article of CLOC in collaboration with Sirion showcases how legaltech empowers legal departments while also addressing the impact of AI on in house jobs.
Call to Action: Reskilling/Upskilling existing staff is the name of the game for legal in house staff to remain relevant. How are you helping your team or are you already planning for replacements ?
Key Takeaway: Adam Smith Esq. writes about how Starbucks expansion had the inverse effect of the one expected. By prioritising efficiency over the unique customer experience diluting its original “third place” charm as noted by Harvard business review. The lesson here is clear: in the pursuit of growth, brands must remain rooted in the values that made them successful. The legal industry faces similar crossroads as it embraces innovation. How can firms modernise while staying true to their core identity?
Call to Action: Consider how your firm balances innovation and tradition. Is your core value proposition clear, even as you adopt new technologies?
The Future of Legal Pricing: Can AI Finally Disrupt the Billable Hour?
Bruce MacEwen & Janet Stanton of Adam Smith Esq. explore the potential end of the billable hour in legal services and how Generative AI could reshape pricing models.
Key Takeaway: As Generative AI reduces the time needed for traditional legal tasks like document review and research, the billable hour model becomes increasingly unsustainable. Law firms must consider transitioning to value-based pricing that reflects the efficiency gains brought by AI.
Call to Action: Assess your law firms’ current pricing model. Are you prepared to ask to transition from a billable hour structure to one that aligns with value delivered? To law firms, will you wait for big clients to drive the change or will you proactively adapt your offering for some of your services?
Will AI kill time billing? Why do clients care so much if law firms continue to use time based software as long as clients get value billing (including at times on a time basis)? Clear budgeting is key and this can be achieved in many ways with or without time based billing. AI related costs are still high and clients are most likely to pay for it at least partly/initially.
This month’s quote
“Innovation distinguishes between a leader and a follower.” – Steve Jobs
As we adapt to the evolving demands of the legal world, this quote from Steve Jobs reminds us that innovation is at the heart of staying ahead.
In a landscape where technology, particularly Generative AI, is reshaping the way we work, legal professionals have the chance to redefine their roles. Traditional approaches are being questioned, and the expectations of clients are growing. By accepting change, we have the potential to lead in delivering more efficient, transparent, and value-driven legal services.
This month, let’s reflect on how we can leverage the tools at our disposal to not only keep pace but to set the standard. It’s about pushing boundaries, fostering a culture of continuous learning, and making strategic choices that position us as innovators in our field.
That’s a wrap for this month! Stay curious, stay proactive, and let’s keep leading the way forward.
