A global law firm supposedly gives you access not only to top legal minds but also to top legal tools. Many law firms are tooting their own horns about their tech investments. Are they justified in doing so?
½Û×ÓÊÓƵ spoke to the UK-based leaders of some of the world's biggest international law firms to determine if UK law firms have better tech than US firms.
According to a survey, 37% of 900 law firms in the UK are currently using legal technology, such as automated documents, interactive websites, and artificial intelligence.
Yet even a quick look at the technology on offer at the top law firms will confirm they're in a league of their own. Many of the firms we spoke with were early adopters of legal technology.
Many have developed tech-as-a-service offerings that enable clients to access tools and products that can deliver legal services faster and more cost-effectively. For example, CMS, a multinational law firm headquartered in London, has an Innovation and Legal Operations team that uses data science and machine learning to provide clients with a more cost-effective service.
Download our free report: the pros and cons of the global law firm
Greg Baker, global head of practice innovation at magic circle law firm Linklaters, says, "Our clients benefit directly from the technology we deploy. They can track the progress of deliverables on an online workspace, negotiate documents themselves on our CreateiQ platform or ask us to interrogate our award-winning knowledge databases for negotiating positions and 'what is market?' information."
The firm's team of 2,500+ lawyers, spread across 30 offices and 20 countries, have access to document automation tools such as automated proofreading tools, and AI-powered review tools to search across sets of documents, and project management tools to deliver a smooth service on time, says Baker.
"We provide our lawyers with a modern workbench of tools and services to enable them to draft a document, deliver some advice or negotiate with a counterparty in an efficient way," he says, pointing out that the firm was one of the earliest users of document automation almost 20 years ago.
According to of the top 100 law firms in the UK, the three main priority areas for legal technology investment are 'Document Management Systems', 'Matter Management' and 'Collaboration tools'.
According to Frances Murphy, partner and managing partner of Morgan Lewis's London office, Morgan Lewis was the first firm to launch an eData team and start working with alternative fee arrangements, which it did over 20 years ago.
"Our expansive technology portfolio and deep bench of technologists, engineers, data scientists, and process designers harness the power of data in service of our clients," she says. "By automating and refining processes, we maximise internal efficiencies, reduce risk, and enhance the power and consistency of our services for clients."
Morgan Lewis is not alone in the US firms we spoke with – many echoed similar sentiments to their investment in legal technology.
An interesting example comes from Dechert, an American multinational law firm which launched its global Innovation Certification Programme in 2022. The programme, which most recently comprised 80+ lawyers and other legal experts, drives innovation throughout the business to benefit Dechert's clients.
"We are already seeing the benefits of the programme with new ideas for client solutions, new technologies, talent reward and recognition, and more," says Levander.
Other US examples include Kirkland & Ellis, which originated in Chicago and had top digital maturity and innovation scores in the.
Kirkland & Ellis has had a data strategy for nearly ten years and continues to embrace new ways of practising law.
Orrick, a San Francisco-originated law firm, introduced MAPE 2.0, a suite of technologies, re-engineered processes, and new roles to ensure their M&A clients receive the outcomes they want. They spent 2,400 hours rethinking how they handled M&A transactions and won the new Innovative Lawyers ‘reinventing legal practice’ award.
Allen & Overy uses Fuse, their tech innovation hub, to enable their clients, and lawyers, to co-develop ideas with some of the brightest and most promising entrepreneurs in this area, ensuring the development of practical solutions.
The UK's increasing interest in legal technology is often attributed to the introduction of the Legal Services Act 2007, which enabled non-lawyers to own and operate legal services firms. Although the market penetration of alternative business structures (ABSs) is still relatively low, their introduction has undoubtedly stirred more traditional law firms to invest in technology and innovation.
Some argue that US law firms haven't followed the same trajectory, as ABS firms are banned in many states, which has stalled innovation amongst US firms.
"In the US, only certain states allow ABS firms to operate, most notably Utah and Arizona, and an ongoing regulatory sandbox in California," says Mari Sako, Professor of Management Studies at the University of Oxford's Saïd Business School.
However, Sako doesn't believe this has slowed innovation across US firms. "I don't agree that the absence of ABS firms in the US has stifled tech innovation, as ALSPs and legal tech startups exist in the US as much as in the UK."
Please go to The technology and tools on offer at top law firms section of the ½Û×ÓÊÓƵ report for more insight into the tech offered by UK and US law firms competing in the global market.
* denotes a required field
0330 161 1234