Team size: Four

Looking forward, what technological advancements do you feel will impact the role of in-house legal teams in the future the most?

The traditional core value of general counsel is their knowledge and expertise of the law and their ability to offer impartial advice. This value is more appreciated since the role of the general counsel is extended to perform a more strategic and leadership role that drives the organisation’s business objectives. This role includes a duty to the general counsel not only to be aware of the new legal technologies but to understand the impact of these technologies on their daily work and how to use them to contribute to responding to the needs of their internal customers and to contribute to achieving the objectives of their companies. I believe that the effectiveness of the general counsel depends as much on their soft skills as their technical expertise.

An array of technologies is being deployed to provide legal services at a cheaper, more efficient, and improved standard. Artificial intelligence, natural language processing, and robotic process automation are tools used to facilitate this. Legal tech empowers general counsel to save time and money by automating repetitive tasks, enabling evidence-based decision-making, faster responses to outside threats and opportunities, and more effective communication and collaboration.

Technology adoption within the legal services industry has been heavily influenced and accelerated by major global events such as the monetary crisis and coronavirus pandemic. In 2021, the international legal tech market was valued at USD$18.4 bn, which will increase further in the coming years.

The general counsel is currently required to develop a long-term innovation strategy. They need to think about how to automate the activities that could be automated through technology, such as contract management, legal research, records management, administrative work, and e-bills. From my point of view as an operational lawyer, I see the value of the contract management solutions which adopt AI.

Contract AI — or contract artificial intelligence — is a type of AI that automates contract data management, contract risk management, contract counterparty management, and more. It helps organisations streamline contract lifecycles and focus on opportunity realisation rather than contract operations’ more tedious aspects.

What can law firms do to improve their service to the legal department?

No doubt, external law firms are adding an important value to the general counsel and business. While general counsel has their skills and experience, an engagement with an experienced law firm provides leverage on the specialist expertise within that firm. This includes expert experience with litigation, claims and waiver, dispute resolution, and M&A.

It is essential for law firms to have proper resources to meet the expectations of their clients and to make sure they reasonably understand how the business of their clients is operated. Similar to what we mentioned above related to the necessity of in-house lawyers to improve their technical expertise to face the new era of legal services, law firms are required to provide a combination of technology and specialisation to adopt more efficient practices and services driven by legal tech. This move is not leverage; it is now a necessity due to the development of the market for legal services and the new era of competition.

There are many alternative options to deliver legal services, such as Alternative Legal Service Providers (ALSPs). AALSPs are currently playing a more significant role in providing legal services. Businesses are increasingly turning to these innovative companies for many routine legal services. Law firms are even outsourcing specific jobs to ALSPs that would be too expensive and time-consuming to do in-house. When clients have come to expect the instant service and satisfaction they get from ALSPs, law firms that are thoughtful, responsive, and engaged with their clients will set themselves apart.

Finally, client-centricity is crucial for law firms to face the competition and the current development in the legal services industry. The idea that client-centred law firms are more successful is not new. However, it is now more critical than ever that law firms who want to stay competitive insist on the client-centred approach.