Legal Technology

Mark Maingi1, *
1
Kabarak university, School of Science, Engineering and technology, Computer Science.
Abstract
Legal technology (digital solutions for providing legal services) has become an integral component of
legal-market competition. In comparison to established organizations, this study emphasizes the
competitive supremacy of legal services based on the idea of new disruptive technology. The current
research reveals numerous patterns in the evolution of the legal technology market for this purpose
(i.e., changing landscapes of legal business, delivery models, legal-market segments, and disruptive
technologies). The volume of under- or unexploited data under legal functions' control is now
acknowledged, and researchers also recognize that valuable insights can only be extracted through the
use of technology. Despite this acknowledgement, the rate of adoption has been slow.

In this study, we focus on the problems that are creating this, the most prevalent uses of technology in
the legal industry today, and some factors to keep in mind when starting or continuing to implement
new solutions. The study also examines how Blockchain and AI have the potential to convert legal
technology adoption from routine to digital disruption, transforming legal from a risk-averse back office
to a strategic partner assisting operations in achieving their commercial goals in a legal-sound manner.
The study emphasizes the security concerns that develop as a result of the usage of technology in the
legal field.

The study's findings show that legal technology make legal services more affordable and accessible,
while also assisting lawyers in developing new solutions and creating a pleasant working atmosphere. In
addition, this research contributes to the literature on service innovation by focusing on how digital
technologies have influenced the development of new legal services and business models. Finally, this
research provides theoretical and practical implications to the research on legal technology' emergence.

Keywords: Legal technology, disruptive technology, Blockchain, Legal market, AI

Introduction
In 2019, the legal technology industry accounted global revenues of 17.32 billion dollars, with
incumbents accounting for 16.75 billion dollars of that total. The legal tech startup market, which
generated 570 million dollars in sales in 2019, is expected to increase at a compound annual growth rate
(CAGR) of 27.82 percent from 2019 to 2025, with revenues expected to reach 2.49 billion dollars. Given
the expected growth rate of the legal tech business, more startups have entered the field as a result of
the adoption of new technologies that aid legal firms live up and perform services more efficiently.

Below are some legal technology vendors:

1. DISCO: DISCO is innovating legal technology to automate and simplify time-consuming, error-prone
processes that stray away from practicing law.

2. Workstorm: Workstorm is a company that delivers enterprise-level workplace collaboration software.

3. QDiscovery: QDiscovery provides a comprehensive range of advanced eDiscovery and forensic
products, with a strong emphasis on customer care.

4. Modus is an eDiscovery solution provider that helps law firms and corporations find relevant and
intelligent data in a cost-effective manner.

5. Everlaw: With blink-speed search, an easy user interface, real-time collaboration, accessible predictive
coding, and sophisticated case-building capabilities, Everlaw offers a unique experience.

6. HighQ: HighQ enables premier law firms and corporate legal departments to transform their
operations and deliver cutting-edge legal solutions.

7. ipro: Tech is a global pioneer in eDiscovery technology, which is used by lawyers to speed up the
discovery of electronic material.

8. LawPay: Through the ABA Advantage, LawPay provides a payment option for law firms and legal
practitioners to accept online credit card payments in their practice.

9. Mimecast is a cybersecurity company that helps thousands of businesses around the world make
email safer, restore trust, and strengthen cyber resilience.

10. ClickNotices: ClickNotices is a software and solutions firm that creates custom delinquent
management solutions for a variety of clients, including landlords, property managers, asset owners,
and attorneys.

Now let’s get to know what legal technology is and its revolutionary works in the law sector.

What is Legal technology?

The use of technology and software to provide legal services and support the legal sector is referred to
as legal technology. Legal IT businesses are frequently established with the goal of disrupting the
traditionally conservative legal sector. The adjustments give an opportunity for a number of prominent
brands looking to increase overall efficiency in order to adapt to a growing number of agile working
environments.

Technology advancements have opened new doors for legal firms to develop more effective tactics for
serving their clients. AI, natural language processing, predictive analytics, document automation, visual
analytics, legal project management, and so on are some of the important technology breakthroughs
that will have significant traction in the sector. Innovative technological breakthroughs in these fields
have the potential to revolutionize the industry.

Benefits of legal technology

Knowing that a lawyer is up to date on all current technology and digital trends might help a client
decide whether or not to hire a lawyer. It demonstrates that the lawyer is committed to doing all that
is possible to represent their clients with all of the resources at their disposal. Aside from gaining new
clients, adopting legal technology has a few other advantages:
 i. Adapting to change. - Electronic court filing has been used in federal courts for years, and
a few states are starting to use it as well. Electronic court filing may become essential at
some point, and lawyers and law firms should begin using litigation support software to
facilitate the transition. Litigation support software is designed to help lawyers with
document review and litigation.

ii. Improved client experience. - It is more important than ever for a law company or
lawyer to keep their clients happy. Even if one provides the best legal work in their area, if
their clients aren't happy with the whole service they received, it's possible not to hear
from them again. Nowadays, customer happiness should be a major goal for lawyers, and
legal technology can helps do it. E-mail marketing software allows communication with
customers and also helps keep them engaged. A live chat option on one's company's
website can also help boost customer satisfaction and convert website visitors into
customers.

iii. Ease of research. - While many lawyers have acclimated to the Internet and now utilize it
as part of their research, many still rely on print items on a daily basis. Because some of
these print publications can take a long time to update, and the law is always changing, it's
better to use an online legal research platform that can assist lawyers stay up to date on
the law while also providing you with features that aren't available in print products.

iv. Automation. - There is a variety of software available to law firms that automates a
variety of business processes. Scheduled meetings, tasks, document management, and
even legal time and billing can all be automated to assist lawyers spend less time on these
activities. Aside from saving up time, it can also save money if a law firm hires an assistant
or office manager to handle these administrative responsibilities.

Technological solutions being utilized in the legal sector

In this section, we'll look at some of the tools that lawyers are using to make the most of the various
programs available for streamlining law practice management.

i. Document management software

Although most document automation systems provide some level of document management
control, standalone document management tools typically provide more sophisticated versions
of those functionalities, or a combination of features. Version control, check-in/check-out
features (an extra level of access control), integration with existing folder systems (Google Drive,
one's server), integration with related software (Microsoft Word, Outlook), offline
access/briefcase, matter management, labeling/tagging, and global search (with in-depth search
functionality) are all features common to a number of these applications. Law companies record
and reference documents more than any other type of data, so a document management
system may be a requirement for good organization and ultimate efficiency, especially if
working with a team.

NetDocuments, Worldox, and iManage are some of the most popular solutions in this industry.
Many case management providers are currently developing stronger document management
solutions; thus, some legal firms prefer to use those features instead of purchasing a separate
 standalone program. Integration between case management and document management
software is already available.
ii. Time and Billing/Accounting software
Almost every accounting program incorporates time and billing features, and many time and
billing applications have accounting features in some form. A time and billing/accounting
program for the majority of solo and small law firms must do four things: provide a convenient
time-capture method, include an invoice construction feature, provide robust reporting tools,
and allow for trust account reconciliation management — or, at the very least, be customizable
to that end. Having the ability to track time and export that log to an invoice form that can
subsequently be completed is obviously beneficial.
iii. Case Management software
Case management software (also known as practice management software) claims to be an all-
in-one solution for law firm management, combining the bulk of common functionality into a
single, easily accessible package. Contact management (with global search for conflicts checks),
Email archiving, Document management, Calendar management (with sync options for your
existing email/calendar system), Time, invoicing, and accounting are all examples of case
management software.

Several major vendors have established APIs allowing third parties to write apps for their
systems — so, if one wishes to utilize QuickBooks, for example, you may use it within your case
management system. Some suppliers eschew the use of APIs on the assumption that a case
management system should include (internally, natively) whatever functionalities the legal firm
will need, such that there is no need to purchase any extra software.

Many of the major case management providers use cloud-based solutions, and others who use
local programs are including cloud-based features or access options. When it comes to case
management, there is a clear and ongoing trend to the cloud. Abacus Data Systems and Legal
Workspace, for example, currently provide remote desktop technology infrastructures that
include case management.
iv. Data backup tools
Data management is the pinnacle of law firm management. Since that’s the case, it makes great
sense to backup data that one already has. Because no single system is fail-safe, utilizing two
systems in conjunction can put one's mind at ease — and it's probably a good idea to pair a local
backup with a cloud version.

v. Customer relationship software

Next-level law firm management involves using data to drive marketing decisions. CRM software
enables users to better visualize the data they collect — assuming they collect it effectively.
CRM offers general contact management tools, such as the ability to make comments to files, as
well as more comprehensive features that will guide a user through the many aspects relevant
to conversions.

When people discover what approaches work appropriately and which ones don't, they'll be
able to close more business. Running reports over a collection of data is made easier with
 default and custom reporting tools. This reporting feature (which may include charts and
graphs) provides a visual representation of one's progress. Integration with data from web and
social platforms, as well as call tracking capability, combine to create a CRM that serves as a
one-stop shop for marketing platform analysis.
vi. Internal communication platform
The issue with the email form of communication is that it may be sent to you by anyone. That's
what makes unfiltered spam so aggravating: you don't have to respond, but you do have to
remove it since it takes up storage space. Many law firms are resorting to internal
communication platforms with restricted access, sometimes known as enterprise social
networks. Calendaring software allows users to assign tasks and write comments on them.
vii. Document automation software
A document automation application allows users to edit existing templates in a variety of ways,
including adding client information. Clause libraries allow non-generic/non-boilerplate clauses
to be included into documents that require specialization. Many document automation
technologies have Microsoft Word plug-ins, allowing users to draft documents in a familiar
environment. A Q&A interface is included in some document assembly tools, which can be very
useful for teaching new employees. Some businesses include templates in their systems for free
or for a fee.

Emerging technology in the legal sector

Technology firms are continuously competing to scale into client segments that want innovations only
once they've demonstrated smooth usability, widespread industry adoption, and practical value. From
e-billing software to contract management software, this section we'll identify digital technologies that
are beginning to establish a presence in the legal sector and are worth keeping an eye on in the coming
decade. While pragmatism in technology deployment is understandable, law firms should be aware of
maintaining a level of service comparable to peers that, at the very least, use some technology in their
practice. Let’s delve in.

i. Artificial Intelligence
In the legal profession, predictive analytics will continue to augment human labor. While
artificial intelligence (AI) refers to a wide range of technologies with varying capabilities, ranging
from narrow intelligence found in voice-activated assistants to super intelligence still on the
horizon, the type of AI most likely to be adopted in the legal industry will be somewhere in the
middle - capable of augmenting legal professionals' activities in a way that unlocks value.

Performance management, billing coding, and electronic discovery are three areas where this
type of middle-ground AI can be very useful. Using artificial intelligence to track key
performance indicators of firm employees is a practice that has been adopted by roughly half of
the world's top law firms, as the data collection offers more precision and insight into how to
best support the growth and success of employees across functions. Another area of middle-
ground applied AI intelligence, which may also be referred to as machine learning, is billing
coding. Legal billing software with invoice databases that can forecast the right billing code of
legal invoice and medical invoice line items, decreasing errors, is one example of this. Finally, the
 use of electronic discovery (e-discovery) in litigation, government investigations, and
information requests has resulted in incredibly vast volumes of digital data, which still need the
fine-combed methodology utilized in paper-based discovery processes. Artificial intelligence (AI)
that assists legal professionals will help cut down on the time it takes to find critical pieces of
information strewn throughout the e-discovery stack.

ii. Smart Contracts

Smart contracts have emerged as a result of the rise of blockchain technologies. Smart contracts
can be divided into two types: those that are a translation of a verbal agreement into code, and
those that are an automation of executed tasks stated under the terms of a text-based contract.
Despite the fact that these contracts are referred to as "smart," there is currently little evidence
that they can intelligently understand whether ambiguous conditions necessitate the fulfillment
or breach of agreed-upon provisions. As a result, smart contracts are now limited to relatively
simple, objective contracts. The execution of the use of a leased car, dependent on whether the
lessee has or has not paid an agreed-upon sum to the lessor, is one example of a near-future
application of smart contracts. The current applicability of smart contracts includes the basic
verifiability of a financial transaction. Contracts that require a trusted third-party to mediate or
settle conflicts, on the other hand, are not currently possible to encode or execute using smart
contracts.

This remark of a narrow realm of applicability should not be interpreted as a criticism of smart
contracts' potential. While with all of the preceding innovations, legal professionals will need to
keep track of their impact on their sector as long-term infrastructure to support technological
capabilities is developed.
iii. Cloud infrastructure
Because the legal sector is so document-heavy, cloud technology promises to boost efficiency by
providing centralized, instant, and searchable access to data. In the coming years, SaaS solutions
to increase access to legal resources and internal documents will become more popular. As
businesses look for ways to save costs, SaaS with subscription-based pricing structures will grow
more appealing. Finally, as legal professionals grow more familiar with cloud-based consumer
technology, the barrier to entry for using cloud-based technologies in firms will be lower.

The improved information accessibility provided by cloud-based technologies is not limited to

legal professionals; the conversion of physical to digital information raises the danger of security
breaches, which can expose sensitive information to malicious actors. Cryptography adoption
will expand as investments in digital information technology increase. Before going to the cloud,
sensitive information disseminated across documents in the legal profession will need to be
secured. Legal professionals should be able to trust digital cryptography solutions to protect
sensitive information because it has proven to be secure for users in other industries, most
notably financial services and banking. There is a real threat motivating investments in digital
security because 80 percent of the largest organizations in the United States have had a digital
security breach and 60 percent of all emails directed at legal firms are phishing scams.
Findings and Discussion
Security issues facing legal technology
The use of computer technology in legal proceedings inevitably raises concerns about the security and
privacy of information exchanged and kept electronically. Information of a personal nature, such as
business, family, or medical details, is frequently divulged during the course of a legal issue. A natural
worry of parties disclosing such information is that it is solely utilized for a specific purpose and is not
exposed or accessed inadvertently. When sensitive information is stored and delivered electronically,
the risk of unauthorized use increases. This is due in part to the increased amount of data that may be
stored, as well as additional security issues associated with material in electronic form. Privacy concerns
may arise when law reports are published electronically. The increased accessibility of law reports made
possible by this technology also means that any personal information contained within the report can be
retrieved more easily.

It's no surprise that the legal industry is a gold mine for cybercriminals. Law companies are increasingly
being targeted by hackers, not only because of the very sensitive data they contain, but also because
they are seen as an easier target than other industries. This is because the itinerant nature of the legal
workforce contributes to many of the issues related with data privacy. Data is frequently transported
and stored outside of the workplace, putting it at danger of theft or loss by mistake. In reality,
unencrypted devices and the loss or theft of documents are two of the most serious concerns
confronting the legal profession.

Documents can be transmitted between several parties and computer systems in a cloud-based e-filing
system. Transmissions between clients, legal practitioners, and the Court, as well as transmissions within
a legal practice or client firm, are illustrations. Document transmission methods include exchanging
floppy disks or CD-ROMs, transferring documents via a LAN or intranet system, and transferring
documents via the Internet or an extranet system. The potential for electronic communications to be
intercepted in the context of an e-filing system could limit its ability to serve persons interested in legal
procedures. This is especially true in the case of prospective revelation of confidential client/legal
practitioner communications, as well as the consequences of such disclosure in any subsequent
proceedings. The risk of interception also makes it less likely that any contact with the court will be
received. Court processes may be hampered if adequate safeguards are not in place.

Conclusion
The legal-technology industry is still in its development stage. Despite the fact that experts are
attempting to give a standard business model, there is still disagreement about its business models.
Each section of the legal-tech industry has a unique business plan that differs from the others to some
degree; this variance is necessary to set oneself apart from the competition. A generic uniform business
model for the legal profession has been established on the five pillars of services, resources, finances,
pricing, and investments, based on more for less, flexibility, innovation, client expectations, and a
service structure.
One way to look at the current legal services market is as a competitive market between competent
lawyers and non-qualified providers, who are enticed by the lucrative slice of legal work that is not
reserved for trained lawyers and which accounts for a significant portion of their income. In this conflict,
legal technology (often known as "lawtech") plays a crucial role. It allows new suppliers to compete on
terms that are equivalent to or better than legal firms that have been doing the business from the year
zero. It's also assisting lawyers in providing reserved activities and black letter law in a better, more
efficient, and less expensive manner in order to satisfy their clients' insatiable want for "more for less."

Lawyers and non-lawyers alike have been enthralled by the possibilities of legal technology, with a
“tipping point” predicted for the legal industry. Both would-be competitors in the legal profession and
government ministers seeking for ways to save money find the promise of accomplishing the same
things cheaper alluring.

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