Working from home (WFH) was part of the new normal for most of us last year. Businesses of various sizes across different industries were forced to adopt remote working and the legal sector was no different. Legal departments and lawyers alike, whether in-house, private practice surged to go digital in an attempt to adapt to business environment changes owing to the pandemic.
It would not be an overstatement to say that the pandemic played a dominant role in driving the technological revolution within the legal profession.
With the vaccination drives beginning to roll out in the UAE and across the world, here are 3 major changes legal teams will witness in 2021 and will continue to see in the foreseeable future.
Emphasis on Moving to the Cloud
Transitioning from working on-site in offices to suddenly working from home was challenging for most organizations, but even more so for legal teams. The major reason for this was the lack of effective systems for document access and knowledge management. Poor visibility on enterprise-wide contracts meant that documents (and their various versions) were difficult to locate and access. These documents were usually stored in enormous folders on a work laptop or on a local share drive. Accessibility to these documents required back and forth on emails and calls between teams.
The pandemic really brought to light to legal teams the importance of having a central repository on the cloud where all the company-wide documents and contracts are stored. Role-based access and permissions to the repository meant that legal teams could view, download, and work on those documents anytime, anywhere and on any device. Trackable audit trails allowed staff to view changes made as well as who made them so as to enhance clarity. Legal teams have recognized the significance of such a cloud-based centralized repository, and as a result, more and more enterprises have begun considering moving some of their core applications, especially document or contract management systems, to the cloud.
Legal teams have recognized the significance of a cloud-based centralized repository, and as a result, more and more enterprises have begun considering moving some of their core applications, especially document or contract management systems, to the cloud.
Migration to the cloud would also help eliminate the risk of data theft and breach as confidential information is hosted on secure and encrypted data server instead of on a shared drive. Legal teams are appreciating that investing in this type of secure central repository can not only boost document visibility but also through authority-based access, allow for smooth remote working while ensuring risk control.
Increased Adoption of AI and Automation in Legal processes
Legal departments are fraught with work that is repetitive, time-consuming, and oftentimes and there are a lot of daily activities that aren’t exciting for highly talented legal professionals. I am talking about administration, contract reviews, redlining and many other repetitive parts of the contract management lifecycle. Managing these repetitive tasks became even more cumbersome while working remotely. Consequently, there is an increased interest from legal industry to know if some of these processes can be automated.
Lawyers and legal departments alike are increasingly collaborating with technology vendors to simplify and streamline many of these repetitive tasks, so that they can focus on things that drive higher value for the company. The reason for this inclination towards A.I. and Automation is so that legal teams can eliminate repetitive elements in contract drafting, contract reviews, and risk management. Further, they reduce the time taken on these activities by over 90%.
A.I. and Automation can help reduce time taken in repetitive activities in the contract lifecycle by 90%
Legal professionals realize that the time freed up through AI use can be used to provide better service, more competitive rates and help onboard more clients. Thus, they are willing to initiate the conversation on how they can leverage A.I. in transforming the way they do things – how to manage this change and create an upskilled multidisciplinary legal workforce that is ready for the future.
Mitigating risks in uncertain times
The relationship between legal teams across industries and risk management dates back to the genesis of legal services itself. Legal teams across industries are taking a more active role in managing risk.
AI helps to reduce risks by ensuring compliance across enterprise-wide contracts right from the inception stage. With predefined rules, AI can ensure governance and consistency in the content of contracts across types and client sectors. Risks due to non-compliance can result in harsh fines, punitive as well reputational damages for a company.
AI can help reduce risks by ensuring compliance across enterprise-wide contracts right from the inception stage
Evidently, compliance is something no legal team can afford to compromise on. Needless to say, the harsh ramifications and definitive degree of compliance incentivized lawyers to adopt AI for managing risks.
Conclusion
The pandemic has stimulated the legal profession to evaluate the effectiveness and competitive advantages that technology can provide in enhancing the way they do business. Legal teams are now taking the lead in developing a way of working that is resilient and equipped for the coming year and future.
