Technology has been rapidly integrated into all industries and is essential to operating a business in today’s digital society.

The UK legal sector is at the forefront of this rising wave of digital solutions. It is undergoing a significant transformation driven by the rise of legal technology, often called legal tech. Legal tech has been changing the way law firms and professionals manage workflow, productivity, client service, and more, and the potential it holds for revolutionising the industry further is immense.

A report from LawtechUK notes that the legal tech sector has a £22 billion annual market opportunity, especially for meeting demands for small and medium enterprises; this could lead to £11.4 billion in annual revenues while also enabling £8.6 billion in annual cost savings. UK legal businesses could also generate £1.7 billion in annual productivity gains.

The legal industry has long faced challenges integrating technology, especially in such a precise field. Many firms and professionals have also held on to tradition and heritage, following long-standing work practices that are tried and true but often require repetitive and time-consuming manual tasks. However, more industry players have become open to adopting innovation, especially in a highly digital world. Technology is now seen as a crucial tool for boosting law businesses rather than an optional add-on.

Here’s a closer look at legal tech and how it has been revolutionising legal work:

What is legal tech?

Legal tech refers to any software or program that supports and serves the legal industry. This technology is typically designed to help law firms and professionals practise law more efficiently, reduce the need for manual processes, and serve clients well. General technological advancements can help improve the legal landscape. Artificial intelligence (AI), blockchain technology, the Internet of Things (IoT), and more impact daily life, including practising law. However, some of these advancements have also been developed into tools that cater to the legal industry specifically.

Legal tech tools revolutionising the landscape

A wide variety of legal tech tools are available, each serving a different purpose in streamlining workflow and enhancing productivity. Many firms use technology to help create and draft legal documents like contracts. These documents can be challenging to develop due to the amount of attention to detail required to ensure every clause and piece of information is accurate and where it needs to be. It can also be a struggle to keep referring to other documents or go back and forth when drafting and editing.

Contract lifecycle management tools can help firms and professionals reduce the tedious tasks of drafting contracts and help professionals create better documents. Definely’s contract lifecycle management solutions show how lawyers and legal departments can leverage their proprietary contract repository and data to insert precedent clauses and information where needed in their documents. The software can also enable easy access and editing of information and automate the proofreading process for more watertight contracts. This frees up valuable time for lawyers to focus on more complex and strategic work while enhancing the quality of contracts and legal documents.

Generative AI is also emerging as a valuable tool for improving efficiency. Generative AI tools can process vast amounts of legal data from cases, statutes, and precedents to find relevant information for a specific case. This saves lawyers time and effort when researching by offering a brief jumping-off point for more in-depth analysis. This technology can also help summarise long documents or point out essential clauses and information, making it easier for lawyers to understand complex concepts. It can also assist legal professionals with drafting documents or pointing out errors and inconsistencies.

While language-learning models like ChatGPT are the most well-known and widely used generative AI tools, the increasing adoption of this technology in the legal sector has led to the development of generative AI programs designed to fit the industry’s specific needs. LexisNexis, a provider of legal and business information and analytics, has been testing its Lexis+ AI tool, which can aid with conversational search, drafting, summarising, document analysis, and accurate legal citations. This move is supported by 87% of legal professionals being aware of generative AI tools, and 95% of the group agree that it will impact the legal profession.

What’s next for legal tech in the UK?

Legal tech is advancing; higher adoption rates are expected as tools become more refined and accurate. More firms and professionals are also becoming more open to integrating technology into their practises, which may lead to increased investment into various tech tools that suit the business’s needs. However, there’s still much room for growth in legal technology. There are still issues with inaccuracies, and some programs have even fabricated information, which is precarious when dealing with a facts and logic-based industry. Many programs also struggle with biases that have come about due to the information and data they were trained on, which can also spark some problems for legal companies. Brewing AI regulations may also shift how law professionals can use the tech and to what extent it can be involved in legal practice.

Despite these challenges, it’s clear that technology is no longer optional; it is crucial for staying competitive, keeping up with an increasingly digital world, and meeting clients’ needs. Case in point, legal tech can greatly support the UK’s commitment to its In House Pro Bono Pledge, which encourages 25% of UK-based lawyers to undertake pro bono work over the next 12 months, rising to 35% next year and 50% the following year. With the help of legal tech, lawyers can complete additional pro bono work in a timely fashion and help further corporate responsibility and Environmental, Social, and Governance (ESG) goals across the UK. Firms that efficiently accomplish tasks, keep workflow productive, and improve output can garner more trust and business, leading to long-term growth.

Visit London TV for all the latest in UK business and tech news.