Technology is both a threat and an opportunity for law firms. On one end, technology has opened the door for market disruptors like LegalZoom and Rocketlawyer who provide some legal services faster and cheaper than law firms.  Some of the low-hanging fruit that law firms and attorneys used to be able to count on is disappearing–or long gone.  In a recent research study by Altman Weil, 21% of law firms surveyed said technology was a threat right now, and 53% of firms described technology as a future threat.  But in many ways, technology is an opportunity for law firms.  The proper technology can help law firms be better and faster, and it can provide law firms with the ability to provide clients with helpful information and analysis much faster than ever before. In our final installment of Re-Envisioning the Law Firm: How to Lead Change and Thrive in the Future, the survey from MPF Insight, the National Law Review will offer an overview of the recommendations surrounding technology in law firms offered in the survey.

Robert A. Young[1] Former Chair, ABA Law Practice Division:

Technology has been increasingly important for today’s law firm with many experts predicting that it will soon surpass rent as your firm’s #2 expense after salaries.  The time has come for managing partners to take a stronger and more proactive role in learning more about this vitally important area.

Having a plan for how technology fits in with your firm’s practice is a crucial part of any leadership strategy.  Additionally, having an effective and robust cybersecurity policy in place is essential in today’s data-driven world.

Law Firms are investing more in technology.  In 2016, firms surveyed increased law firms increased investment in the following areas by the following percentages:

  • Cybersecurity, 23% of respondents increased investment
  • Website, Internet & Digital marketing, 20% of respondents increased investment
  • Case Management Software, 12% of respondents increased investment
  • CRM & Database, 10% of respondents increased investment
  • Competitive Intelligence, 5% of respondents increased investment
  • Legal Research, 2% of respondents increased investment

Read the rest of the research at the National Law Review.