Adapting to technical innovations and alternative work models are some of the new trends transforming the legal industry. Their adoption was rapidly accelerated last year.
The legal industry is constantly transforming. As an industry, it attracts young candidates and provides a vital service to people at many stages in their lives, both personal and work-related.
Worldwide, law firms embrace the technological innovations that are contributing to the reformation of the legal framework. The pandemic created the need for courts and legal firms to work remotely and speeded up transformation. These are the 7 new trends transforming the legal industry right now.
1. Streamlining Discovery
Any technology that helps streamline complicated legal procedures is welcome to legal staff. Thanks to software developers, 2021 is the year where the process of discovery becomes easier than ever. This complicated process of examining all the items relevant to a case is very time-consuming for both sides of a legal case.
Professionals who know how to use the technology known as e-discovery can manage the electronic data involved. This makes the process easier and faster.
2. Baby Boomer Retirements
Over the next few years, a whole generation is set to retire, creating a huge impact in the legal industry. Baby boomers are retiring at a pace of 65,000 people a day, and the last of them are set to reach full retirement age in another 10 years.
This means the demand for new lawyers to enter the field will continue to grow. Legal firms provide more than judicial advice and are also responsible for assisting clients in asset management, especially where retirement planning and asset transfers are concerned. Legal guidance is also sought by retirees regarding issues like loan payments and health insurance as they
Moreover, adult children also seek legal assistance when their parents need to go into nursing homes post-retirement. Therefore, baby boomers are retiring from the legal industry and creating a huge demand for legal advice in areas of the law that don’t entail judicial matters.
3. Outsourcing Legal Processes
Getting things done is vital to running a law firm efficiently. This help can come in many forms and has created a demand for legal process outsourcing. Law firms hire talent equipped with technological know-how for roles that don’t require legal knowledge. Legal processes outsourcing reduces expenses, and law firms are expected to increase their revenues by $35 million because of this.
4. AI and Machine Learning
Artificial Intelligence (AI) and machine learning are changing the way tasks are done in legal firms. Manual tasks like sorting paperwork, legal research, documentation, citation, etc., are now carried out by automation processes making them faster and eliminating any errors.
Moreover, law firms are taking advantage of cloud technology to store client information rather than using hard drives. Virtual reality and augmented reality assist legal teams when remote consultations are needs. They are also used for training and other collaborations.
5. Extending to Global Markets
As many firms move their business overseas, legal firms are also eyeing the global market. It is predicted that the global services market will surpass $8 billion by 2022. This huge service market is enticing to law firms.
6. Increasing Legal Demand
Legal services continue to be an important industry globally, and this demand is expected to continue. The continued demand for legal services last year, despite lockdowns, proved that legal professionals need to discover which areas of the law are most in demand. New entrants to the industry will need to specialize.
7. Meeting Client Needs
Legal firms must be poised to meet the demands of their clients requiring specialized law. One area where demand is high is business law, where mergers and acquisitions must be completed following local law and international laws as they apply. These services are expected to bring in $ 5 billion, making business law a vital specialty that will continue to grow.
The new law is an $11 billion industry that allows lawyers to be hired on a contract basis. This offers firms the flexibility to meet the challenges of the law industry as they provide their clients with assistance. Many lawyers are also choosing to work part-time, either as they continue their studies or to create a more balanced way of living. Paralegals also offer invaluable support to legal teams as they meet the needs of their clients.
As legal firms embrace and adapt to the challenges of these new trends, the easier it is for them to ease into the future of law. After all, the client-centric approach many firms are adopting is reaping the rewards.