Top 5 Reasons Law Firms Resist Legaltech Innovation

Top 5 Reasons Law Firms Resist Legaltech Innovation

You would think the legal sector would wholeheartedly embrace technologies that make them more efficient and productive. Yet that’s not the case. The legal sector has been historically slow to adopt technology. Perhaps the only industry slower than legal is healthcare.

At any rate, the legaltech industry is facing an uphill battle trying to convince law firms to get on board with the latest innovations. Whether it’s a new case management software package like NuLaw or a cloud-based e-discovery service, law firms often have to be pulled into the 21st century despite their reluctance.

According to a recent survey cited on the JD Supra website, there are nine different challenges that general counsels say make it difficult for them to embrace legaltech innovation. Here are the top five:

1. Lack of Funding

The number one reason is a lack of funding. Believe it or not, some 55% of the survey respondents expressed difficulty getting the money they need to update technology. That’s pretty astounding when you consider the kind of money law firms spend to keep themselves in operation.

One way around this is to invest in software as a service (SaaS) rather than buying software packages and the expensive licenses that come with them. SaaS is typically subscription-based. More often than not, subscriptions involve only a small upfront investment.

2. Legacy System Issues

Number two on the list are the problems posed by legacy systems. This is clearly observed in law firms that use multiple legacy systems to separately handle case management, matter management, billing, accounting, etc. It can be difficult to bring new technology in that accommodates all of these legacy systems.

An all-in-one solution like NuLaw is the answer. It brings everything together in a single package to eliminate the need for separate systems. And because everything is contained within the same environment, the conflicts between individual legacy systems are eliminated.

3. Choosing What to Invest In

The next issue is deciding exactly what technology to invest in. There is no easy way around this one. In order to embrace innovation and not break the bank, law firms have to give considerable time and effort to assessing their needs and deciding how to best meet them with technology.

4. Time Commitments

The fourth item on the list relates to time. Simply put, 31% of the survey respondents reported that they do not have the time to put into adopting new technology. That says nothing of the time it takes to decide how to invest technology budgets.

There is no easy solution to this problem, either. A law firm that wants to improve efficiency and productivity through technological innovation has to make the time to do it. The time is not going to magically appear by itself.

5. Unmet Expectations

Finally, some 25% of the respondents said they are resistant to new technology because their current technology is not meeting expectations. Ouch!

It’s one thing for legaltech companies to push their new products as the latest and greatest in legal innovation but producing products that actually get the job done is an entirely different matter. And unfortunately, it seems a lot of tech companies introduce products that are long on window dressing and short on usable function.

What will it take to bring the legal sector up to speed in the technology arena? It will take a concerted effort between law firms and technology producers to meet the challenges listed in this post. If these five things can be tackled, more law firms would likely be willing to enter the technology age.

Category Legal Advice