Digital transformation is high on the agenda of Australian law firms with “Over three in four Firms looking to increase technology investments over the next 12 months”, noted Commbank’s latest survey on the legal market.
The latest CommBank Legal Market Pulse revealed almost eight in 10 Law Firms reported stable or rising profits in FY20 compared to FY19.
The research conducted by Beaton Research and Consulting provides insights and information on the latest trends and developments impacting the Australian legal industry.
About 90% of the leading resilient law firms are seen increasing investments in Data and Analytics
Rising Legal Tech investments
“The digital transformation plans are expected to support the 93 per cent of law firms planning to offer more flexible and remote working options.
Over three in four law firms are looking to increase technology investments over the next 12 months
Closer to 90 per cent of the law firms planning to deliver more service digitally are expected to gain from digital transformation plans.”
Australian Law Firms’ ongoing investment in people and technology indicates that the sector is positioning itself for the gradual rebound in business conditions and workflow.
Digital Transformation remains a top focus for Australian Law Firms
Also read: Australian Law Firm reduces claims processing time deploying AI
Data Analytics, Blockchain and AI are among the top priorities
The proportion of the more resilient Law Firms with investments in Data & Analytics, Blockchain and AI reveals the uptake of technology and the increased focus on digital transformation.
About 90% of the leading resilient law firms are seen increasing investments in Data Analytics. Over half of these firms are also increasingly leveraging Artificial Intelligence.
Years of steady investment in digital technologies helped law firms smoothly transition to working remotely and delivering services digitally
Belinda Hegarty, National Head of Professional Services, Commonwealth Bank, said: “Despite the operational and financial disruption brought about by coronavirus, the Australian legal sector remains in great shape.
We expect to see a continued focus on digital transformation that has followed years of investment in technology within the sector”.
Also Read: The Top Legal Tech Trends – according to Gartner
Gartner Hype Cycle for Legal Tech
Leading Analyst firm Gartner forecast the Law Firms’ interest in technology is increasing. The most important Legal Tech and Compliance Technologies are:
- Enterprise Legal Management
- Predictive Analytics
- Robotic Process Automation (RPA)
- Subject Rights Requests
The Blockchain Option For Legal Tech
Gartner highlighted the advice to consider these four technologies is not solely based on their position on the Hype Cycle.
Leaders of Legal tech and compliance technologies should focus on the technologies that have the highest potential. The position on the Hype Cycle is part of that but not the whole story.
For example, Blockchain is a technology that has the potential to make a successful journey to the Plateau of Productivity within five years.
But for now, its application will likely be limited to quite a narrow set of use cases, and it is unlikely to be transformational for corporate legal and compliance leaders.
