Capturing Technological Innovation in Legal Services

NTRODUCTION

A key strategic aim of the Law Society is to ‘support
solicitors to develop their expertise and their
businesses’. As part this work, we set out a clear
undertaking ‘to provide effective horizon scanning,
market intelligence, insight and news of innovation
to solicitors so they can plan for the future’. The
Law Society’s Future of Legal Services report stated
that ‘innovation in services and service delivery will
become a key differentiating factor’ going forward
(Law Society 2016: 4).
In Capturing Technological Innovation we explore
how some law firms have taken up this mantle for
innovation. The Futures report identified the key
drivers for change in the current landscape of legal
services as:
• global and national economic business
environments1
• how clients buy legal services (including in-house
lawyer buyers as well as small and medium-sized
businesses and the public)
• technological and process innovation
• new entrants and types of competition
• wider political agendas around funding,
regulation and the principles of access to justice
Although listed as a driver in its own right,
technological and process innovation is playing
a critical role in how legal service providers (re)
conceptualise their business models in response
to other drivers and, in particular, how they (re)
conceive the processes of performing and delivering
legal services. The research reported here brings
together examples of innovation among law firms
using a range of technologies. Some law firms have
even brought in coders to develop their own specific
solutions. Legal aid and smaller consumer law firms
have turned to innovative uses of technology to
expand geographic reach and overcome funding

challenges. These approaches have included selfhelp

kiosks, websites that use LiveChat to answer
questions, mobile responsive information and tools,
and smart forms.
Tangible examples highlight a duality between B2B
and B2C firms. For corporate law firms, technologies
such as machine learning and Artificial Intelligence
(AI) function behind the curtain to bring greater
efficiency, simplification and speed to the heart of
the process in volume and transactional work; other
tools bring sophisticated ways to manage risk and
to address the emerging legal needs of corporate
clients’ businesses. Conversely, in access to justice
and consumer-driven innovations, technology brings
efficiency and simplification to a surface level by
offering consumers explanations of and guidance
through legal advice. For legal aid and small
consumer firms, technological innovation brings
new ways to interact with clients, but also predictive
analytics to weigh the merits or financial viability
of a case to the firm. We will encounter examples
from a number of perspectives through the report.
Technological solutions play a key part in many
of the innovations featured in this report, but
technology in itself is not the cure-all for firms and
few firms will find their problems solved purely by
investing in a piece of software. Rather, the need for
change and ideas about how to do so come from
a firm’s strategy and business model; ideas which
technology can enable. That said, the speed and
efficiencies, economies of scale, of accuracy and
remote connectivity enabled by various technologies
are arguably essential components of the way in
which firms reconceptualise what is possible and,
more importantly, bring a newfound agility to
product, process and business model innovations.

The overarching aims of this research were:
• to capture technological innovation in action in
the context of legal services, with a particular
emphasis on highlighting practical examples
and perceptions from law firms, start-ups and
technology suppliers; and
• building on interviewees’ views and examples,
to model patterns and steps towards
innovation that might be useful to members
when thinking about their own businesses and
possibilities for change. 

It is beyond the scope of this report to provide an
exhaustive audit of every perceived innovation
or disruption in the legal services market. Instead
the focus is on the experience and perceptions of
particular individuals, and identifying practical
examples of technological innovation and practical
advice for those looking to bring innovation to their
organisation. The report includes some mention of
technological innovations affecting legal practices in
the US which may offer ideas for firms in the UK. The
analysis draws from a multi-strand data approach
that includes:
• desk research2
• online survey and discussion with the Law
Society’s Insights community3
• 10 qualitative depth interviews with legal
technology solution suppliers, legaltech and
fintech start-ups, chosen for their innovative uses
of technology to create tools for law firms; for
fintech, new ideas relating to digital currency,
customer service and delivery models may have
applications in a legal context.
• 20 qualitative depth interviews with individuals
at law firms in roles such as Head/Director of
Innovation; Chief Technology Officer; Senior
Partner; CEO, chosen to understand their

approaches to innovation and examples of notable
innovations (in business model, area of practice,
use of technology, collaborations). Interviewees
were based across a spread of firm types: Big Law,
large B2B firms, small boutique B2B firms, smallmedium

B2C firms (including legal aid firms).
In-depth interviews covered topics such as: how the
innovations discussed originated, were implemented
and evaluated; strategy and culture; impacts of
such provocateurs as artificial intelligence (AI) and
Bitcoin/blockchain; and the potential for ‘radical’
disruption and a reinvention of established legal
processes. Throughout the report a series of feature
boxes present practical examples of technological
innovations in action and key insights for firms looking
to innovate in their own practices. Some examples
and aspects of innovation have been anonymised and
clear identifiers removed from quotes.
Capturing Technological Innovation forms part of
an ongoing programme of futures thinking that will
enable us to: (i) understand emerging future issues
likely to impact the legal profession and increase
members’ and public understanding of them;
(ii) support members by providing awareness of and
guidance on technology and process innovation; and
(iii) help members to engage with new and evolving
business models. The report discusses a range of
strategies for addressing legal problems in nontraditional

ways in order to inspire others to revisit
their own business models and strategies in light
of other opportunities (technology; partnerships;
changed offerings; resourcing models) and to prepare
for change. To help members in this regard, the
report closes with a section which translates research
insight into actions which will help firms thinking
about and through change.

Capturing Technological Innovation in Legal Services