What is legal automation?

Jan 23, 2023

Written By Sophie Wilson

Legal automation seems to be important for the future of firms as technology becomes more prominent in the sector. This article will explore what legal automation is, and the benefits and risks of automation within the legal sector.

What is legal automation?

Legal automation is when a firm uses software that allows routine and manual tasks to be completed by a computer rather than by an employee. There are a wide variety of ways that legal automation can be used, from the generation of automated contracts to automatic bill creations.

The main benefit of this is the amount of time that it saves fee-earners, allowing lawyers to spend more time studying the case ahead of them rather than filling in forms. An example that many have heard of is the electronic signing of documents, through software like Docusign.

How did legal automation come about?

There have been many technological developments throughout the years that have led to legal automation being so prominent. This goes back to as early as the 1950s when dictaphones were first used. These meant lawyers could communicate their instructions verbally rather than having to write them all down; secretaries could then write these up.

Technology has been developing continuously in how it can be used to benefit law firms, and other key improvements are seen in machines like the fax machine, where communication was made dramatically quicker. It allowed legal documents to be sent so that clients and courts could obtain them when required.

Today, legal automation is most commonly about artificial intelligence. This encompasses using search engines to conduct legal research that allows professionals to scan a large range of databases to find answers to their enquiries. It also allows for the use of software that can predict what the outcome of a litigation case will be.

What are the different types of legal automation?

There are many different types but three uses are explained below:

1. To electronically sign documents. This means that a document does not have to be printed out and signed by both parties to make it legally binding. Instead the signatures can be conducted on the computer. This limits the amount of paper needing to be printed, and also makes it easier for all parties to access the document.

2. To automatically generate contracts. This means that for each new contract, a solicitor does not have to create documents with the correct formatting, numbering and document styles. Instead, because a lot of documents are similar, the answers provided to a questionnaire can be used to bring up a document that is correctly formatted. The lawyer can then amend this to fit their client’s case accordingly.

3. Automated billing management. Instead of bills being manually drawn up, they can be generated from the time clocking software that solicitors use. The time spent drawing up a bill for the client can therefore be spent on the client’s actual case.

What are the benefits of legal automation?

The main benefit is saving time. Lawyers can spend their time working on their clients’ cases rather than on billing or on formatting certain documents. This is particularly good for the firm; this will drive their profits up as there will be more billable time generated.

Another benefit is lawyer satisfaction. A lawyer can spend their time on the legal side of their job rather than the mundane admin parts, and so this is likely to increase their job satisfaction. After years of being at law school, this is more rewarding than completing the same task day in day out. This in turn draws up employee retention rates, and so it is in the firm’s favour to introduce legal automation.

Are there any risks?

There is a risk that the cost of introducing legal automation outweighs the benefit of it. If the software becomes too expensive then the profits from the cases that use it will not be enough to justify its introduction. Similarly, if the software is too difficult or complicated to use, then a lawyer may spend too much time trying to understand it instead of getting on with their jobs. There are also concerns about what happens if the software malfunctions, or is subject to a security breach.

Legal Technology