What do 43 of the top-50 UK law firms have in common?
According to Thomson Reuters, they all have a ‘Chief Technology Officer’ (CTO) – or an equivalent C-Suite level technology specialist.
It is not by coincidence that so many of the most successful firms by fee income have placed a very senior person in charge of this crucial part of the business.
For the legal sector, the big jolt that prompted law firms to fully embrace technology was of course the Covid-19 pandemic – when video conferencing and file sharing tools that had all been around for a while were suddenly viewed in a whole new light. And now, we have a second big event – the rapid development of artificial intelligence (AI).
There’s no doubt that artificial intelligence is set to have a big impact on the legal sector. For example, legal automation is already being used to streamline processes by conducting manual or routine tasks, and this will become more sophisticated. In terms of artificial intelligence in litigation, the ultimate goal will be for technology to accurately make litigation predictions – calculating a case’s prospects of success in a reliable way. Such a tool will be particularly appealing in relation to litigation funding, as litigation funders consider whether to invest in a case.
But as AI develops, it will also bring more risks to law firms; particularly the daunting prospect of ever-more sophisticated cyber attacks. All this will need careful management by a technology specialist at the top of the firm.
So the finding by Thomson Reuters that so many law firms now have a CTO is reassuring, but perhaps not that surprising. In its 2023 State of the UK Legal Market Report, the information services company found that 76% of law firms cited digital transformation as a ‘high or medium’ priority last year, and many firms had appointed a CTO to drive this transformation.
In the context of emerging legal trends, Thomson Reuters predicted that the CTO’s role will only grow in importance with the increase in the use of artificial intelligence within law firms. It noted that the recent explosion of interest in generative AI such as ChatGPT is already influencing technology investment strategy within law firms. According to Thomson Reuters’ ChatGPT and Generative AI within Law Firms Report 2023, one third of law firms globally are considering adopting generative AI, with 80% of law firm leaders believing that it can be used for legal work.
Thomson Reuters said: ‘More law firms are becoming aware of the benefits AI can provide in boosting efficiency and adding value for clients. The technology can analyse vast amounts of legal information, streamline the document review and due diligence process and automate routine and repetitive tasks. Through machine learning algorithms, AI can also analyse historical case data, identify patterns and predict case outcomes.
‘These benefits can help a lawyer devote more of their time on tasks that require critical judgment and less on monotonous administrative tasks.’
Meanwhile Kriti Sharma, Chief Product Officer, Legal Technology at Thomson Reuters, added: ‘The role of technology within the legal profession is growing at an incredible pace. CTOs are becoming even more crucial in driving a law firm’s central strategy and ensuring that technology is implemented in the best possible way…
‘Any law firm that fails to consider the positive impact advanced tech might have on their business could be left behind quickly.’
August 1, 2023
Insights
