Are Legal Services inching toward Automation?


Arizton’s recent market research report on Alternative legal service providers market in US provides comprehensive industry analysis, trend forecasts, and competitive analysis. The study includes insights on segmentation by Providers (new law companies, captive LPO, staffing/recruiting and contract lawyer companies, and others), Services (eDiscovery, investigation and litigation support, contract management, document review and coding, legal research, regulatory risk and compliance, and Others), End-user (law firms and corporations), and Geography (US).

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While the identity of the US legal industry is refreshed and turbocharged in several, alternative legal service providers are at the heart of this. The disaggregation of law services is underway, which is majorly driven currently not by players within the industry but by clients. Alternative service delivery providers are taking on a multidisciplinary approach and transforming this sector in the following ways.

The leading drivers and trends driving the growth of the alternative legal service market are discussed below:

Increase in Legal Spending

US companies have higher legal spending than other companies in the rest of the world. The high spending can be attributed to the fact that the US has a heavier litigious climate. The country is characterized by widely varying laws and complexities in every state driving up volumes in terms of law advices required. Further, the pay of law practitioners also tends to be higher in the country with expensive billable hours. Another indicator of the growth of the law industry is the reversal of the decline of employments and law school applications in 2018, post years of flat or deteriorating levels. Increased M&A/transactional activities are witnessing a boost, consequently driving spends among law departments. In addition, since the ROI for legal spends has gone up owing to better products, it has created more demand among law firms, law departments, and service providers.

The Rise of Self-service Functions

Law department employees are being empowered to engage in and perform legal activities without the intervention or direct presence of a lawyer. This is being performed through self-service tools and systems that provide dynamic updates to get access to advice without relying on a third party. Another attractive feature of these operations is that they allow for risk-free acting and transacting within the boundaries of the legal function. This is following the endless quest to automate tasks through the use of process and technology with built-in intelligence and as departments cave in to the increasing pressure to improve efficiency and reduce costs on priority. In 2018, Sky Legal launched an app, Legal Front Door, which enables the personnel of the corporation to serve the law team with a range of requests. Hence, as companies increasingly use self-service functions to make the right calls, their dependency on alternative legal service providers can reduce for manual delivery of low-end functions.

Increased Focus on Technological Adoption

While the impact of technology on business processes has been well-documented and realized in a majority of functions such as Finance, HR, and IT, the case hasn’t so for the legal function. The legal function has been late to employ technology to take on myriad tasks of varying degrees of complexity and create flexibility in service delivery. However, the scenario is changing and is inching closer and closer to more technology-oriented processes, and the most popular reason seems to be decreasing labor costs by deploying software solutions. Machines are expected to be utilized by law firms to accomplish routine tasks due to growing sophistication and maturity.     

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Allen & Overy, Axiom, Elevate, and UnitedLex are identified as prominent vendors in US alternative legal service providers market.

The complete overview of the latest market research report on the alternative legal service providers market by Arizton is now available.

The report offers a detailed study of major trends, drivers, challenges and provides market sizing and forecast for major geographical regions and key countries.

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