Lawtech Opportunities for Legal Firm

An SRA report sheds more light on technology use in the legal sector – and it’s helping law firms identify areas of opportunity for competitive advantage.

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An SRA report sheds more light on technology use in the legal sector – and it’s helping law firms identify areas of opportunity for competitive advantage.

The study from the SRA and the University of Oxford revealed technology use across UK law firms.

In Technology and Innovation in Legal Services, a survey of almost 900 law firms shows that ‘the COVID-19 pandemic led [legal practices] to increased technology use “to manage or process work” (76.0%), “to attract new clients” (71.1%), and “to interact with clients” (63.8%).’

That technology has also led to wider innovation, with the report showing that 67% of firms who introduced new services also introduced new technology.

Recommended: How to achieve buy-in at your law firm

How do law firms use technology?

Law technology adoption dominates across two areas: service and process.

When surveyed about the current purpose of technology in their firms, 71.5% said it improved service quality, while 70.9% said it improved workflow efficiency.

When asked about the purpose of future legal tech in their firm, the focus on processes dropped slightly to 66.4%.

However, 74.1% of firms surveyed said they will continue using technology to improve service. The value of the customer experience — creating seamless, consistent client journeys across offline and digital channels — is well understood in the legal sector.

In a survey of over a thousand businesses across all industries, 45.9% say their five-year priority is delivering a customer-centric experience. This is understandable when 92% of UK consumers told Microsoft’s Global State of Customer Service that customer service is important to their choice of and loyalty to a brand, and 58% would stop using a business after a poor experience.

The opportunity:

If you’re keen to increase your digital reach, this is a critical area to continually refine. As every business continues to innovate, adapt, and engage with customers, consumer expectations continue to rise.

In many cases, these goals support each other. When an estimated 23% of legal work could be automated, it frees up resources to deliver better service and use improved tools to connect with both new and existing clients.

What’s slowing lawtech adoption?

Although caution around lawtech is well documented, it is not the main barrier to adoption.

For firms that already use, or plan to introduce, new technology, the main barriers are:

58.2% cannot afford to invest in new technology
50.1% report a lack of staff expertise — despite almost 65% of firms selecting existing staff to use new technology
44.7% say there is regulatory uncertainty

In firms where technology has not yet been adopted, the picture is slightly different:

50.9% lack the financial capital to invest
50.4% cite a lack of consumer appetite — although self-service is becoming increasingly popular
48.4% say it is not a strategic priority

Risk to business and the bottom line also contributes to caution. Around 34.1% say new technology may pose unexpected legal or regulatory risks, while 55.6% fear an investment may not deliver meaningful business benefits.

This concern continues when firms are asked about ongoing innovation in the workplace, with uncertainty around business benefits remaining the top concern (36%).

The opportunity:

If these barriers sound familiar, The Law Superstore may be able to help your firm grow.

With no subscription fees or minimum-term contracts, the comparison website connects you with new enquiries from people searching for specific legal services. It is often cheaper than many other marketing options, and there is no risk with our trial, which offers 50% off your first three invoices.

The platform’s partner dashboard is simple to use, making it easy to manage clients. We also work closely with the LSB and SRA, including participating in a pilot scheme run by the SRA, CILEx Regulation, and the Council for Licensed Conveyancers as part of a drive to improve consumer information and choice.

Read: Why partner with The Law Superstore

Which law firms are doing best?

The SRA’s report highlights a clear disparity in innovation among different-sized firms. Innovation is defined as significantly improving existing services, introducing new services, or improving the delivery or marketing of services.

Practices most likely to innovate are those serving larger corporate clients or those established within the last five years.

In other words, both large and small firms are leading the way: agile, tech-savvy start-ups and larger firms whose scale and service needs require reliable technology simply to operate.

Despite this, a greater proportion of respondents considered themselves innovative with respect to service delivery (74.6%) than with marketing their services (48.8%).

The opportunity:

Mid-sized law firms should be aware of the risk of being squeezed out of the digital marketplace by faster-moving firms or those with larger budgets.

As the industry continues its march online, there are many inexpensive opportunities to introduce new technology, retain existing clients, and attract new ones through additional services and wider geographic reach. Explore more in our guide, How to build your online brand: the basics.

It is also worth noting the lack of confidence many law firms have when it comes to innovating their marketing. The SRA suggests this may be because marketing innovation is perceived as more difficult, which again creates an opportunity for forward-thinking firms.

The Law Superstore connects you with people who need your services, strengthening your online presence and offering new ways for clients to find your firm.