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A Progressive Digital Evolution Influencing The Legal Industry

The progress in the field of information technology (IT) has consistently had an innovative effect on each industry. The primary concern is on strengthening customer service and using data to make better decisions on a global basis. The increasing digitization of industries is now the norm. And the transition from regular work to a more digital way of working needs to happen in order for companies to keep up with the competition. At this point, technology is only going upwards.

While it can be scary at first, especially if you're not tech-savvy, the first thing to realize is that it enriches your work and makes you more efficient in the long run. Global spending on digital transformation will grow at 17.1% annually between 2019-2023. Technology is permeating every single industry today. Technology has significantly transformed the way we work and provide services, from AI- based HR solutions to blockchains in banking, fintech, and underwriting in insurance.

This use of digital technology to alter a company model and provide new prospects for sales and value generation is known as digitalization. It is the procedure for converting to a digital enterprise. The transition to the digital terrain has been easier for associations that had formerly invested in technology results and collaboration tools over the years. But there are industries which were lag behind but the novel coronavirus i.e., covid-19 hampered digitalization in the service sector with multiple impacts. Movement restrictions have also impacted the service industries, highlighting the importance of the digital shift in the industries.

The legal industry has not been spared from these technological upheavals either. Like every service industry, covid-19 has also impacted the legal profession like Numerous mergers and acquisitions are currently being postponed and the courts are non-functional. Similar to most other companies in the world, law firms have also embraced remote working and are leveraging technology heavily to increase productivity and facilitate communication between employees.

Over the past two decades, the way legal services are delivered has changed significantly. Earlier no one have ever imagined that court hearings would be held virtually and justice would be delivered by using technology. However, the increasing use of technologies by legal professionals proves that legal tech is here to stay.

What Is Legal Digitalisation?

Digital transformation in the legal field is the process of converting all elements of the legal experience into a digital format, such as the delivery of services, the organization's tasks, the implementation of procedures, collaboration between team members, and interaction with customers. The efficiency and progression of work in traditional law firms appear to be slower when compared to the speed and immediate success that individuals expect from modern digital technologies.

Therefore, the legal industry, like many other sectors, faced extensive digitalization. Legal technology first came into focus around the 20s with the advent of websites that offer a digitally searchable library. Over time, legal technology evolved and penetrated into more complex legal areas. In recent years, technology has also been used to revolutionize the way legal education. In 2017, the Supreme Court digitized one crore and five lakh pages of civil appeals and the government launched an Integrated Case Management System (ICMS), aimed at the digitization of services being provided to the Indian judiciary.

The legal sector has already embarked on a three-stage expedition to the digital revolution. The pioneers are in phase three, while most of the industry is in the early or intermediate phase.

STAGE-1
In the early 2000s, general counsel's tasks increased due to globalization. Legal departments and firms adopted "stage one" alternatives, including knowledge tools, optimal practices, insights, technology, content-enabled workflow, online research, effectiveness tools, transparency, and AI and machine learning-based technologies. The dot-com boom led to numerous websites and portals, including Manupatra's online legal research in India. These "first stage" options include data tools, best practices, insights, technology, content-based workflow, and efficiency tools like cloud-based contract management.

STAGE-2
With the beginning of stage 2 legal executives acknowledge that, in order to genuinely generate efficiencies from these emerging digital technologies, they must overhaul their organizational structures, procedures, conduct, and values. Consequently, the second phase revolves around implementing profound transformation to harness potential efficiencies. Those entities that have amassed a significant number of new technologies have recognized this necessity and have undertaken this aspect of the expedition

STAGE-3
In the 3rd stage, The legal sector is beginning to undergo a transformation by adopting new technology in order to achieve greater efficiencies. From online education platforms aimed at teaching practical skills to students to online platforms for directly connecting consumers with lawyers, technology was now increasingly being utilized to enhance the accessibility of legal services. It also allows the legal industry to connect more efficiently with the company, contributing value in novel manners, utilizing business and legal data together, linking and aligning around goals, and producing genuine and undiscovered value.

Advantages Of Digitalization Of The Legal Industry:

  • Even though the legal sector had been hesitant to adopt digitalization, the pandemic compelled additional upheaval and spurred noteworthy technological advancement.
  • With the advancement of technology, there will be a noticeable rise in efficiency.
  • Instead of adhering to traditional paper methods, workers can optimize operations using digitalized processes, allowing them to work from any location and handle pressing issues as well.
  • The American Bar Association predicts a rise in teleworking among lawyers, allowing them to work from home full or part-time.
  • Using dedicated offices and online technology like video conferencing, lawyers can stay connected with colleagues, clients, and the courtroom.
  • However, security concerns must be addressed using digital technology like VPNs to ensure safe data transfer and protection against external cyber-attacks.
  • Remote work has prompted law firms to adopt technology for client communication. This client-centric approach addresses evolving demands for faster delivery, greater transparency, and affordable services.
  • Efficient systems enable clients to give evidence, and depositions, and attend motion hearings through teleconferencing.
  • Advanced cyber security systems enhance attorney-client relationships by securing and ensuring confidential client information.

Challenges In Adopting Digitalization:

  • Digital India faces challenges in addressing cases pending in courts due to a lack of digital literacy among the Indian population.
  • Virtual courts' full potential will only be realized if the public is adequately educated to fully utilize their benefits.
  • The digital transition in help desks is still behind schedule, with users still preferring phone calls for assistance.
  • Employees are often forced to learn new skills to cope with technological advancements, leading to a lack of motivation to educate themselves about technological advancements.
  • Self-service portals are becoming more popular, but they are still rudimentary in their services.
  • Automation is still limited, with over half of the inquiries not addressed automatically without human involvement.
  • The adoption of ITSM solutions, such as robots, bots, chatbots, and AI chatbots, is restricted, adding unnecessary workload and preventing users from learning about advanced technological systems.
  • The drawback is that not everyone is comfortable with new tools and justice delivery, making courts more inaccessible to the general public.
  • Lack of knowledge among help desks compromises cost-effectiveness and professional guidance.
  • Digital transformation is essential for the legal profession, but it presents challenges such as data security, staying up-to-date with technology, and access to justice.
  • Lawyers handle sensitive information daily, and some choose low-cost solutions.
  • The future of legal services will be impacted by digital transformation, but access to justice remains a significant challenge.

Future Digitalization In The Legal Industry:

  • The legal industry is undergoing significant changes due to digitalization, with the increasing use of technology to automate and streamline processes.
  • Artificial intelligence (AI) can reduce research time and resources, while digital tools can manage workflows, track deadlines, and automate tasks like document drafting and review.
  • Improved communication and collaboration between lawyers and clients boost specialization.
  • The digital age is also expected to bring significant changes to the legal education system, as law schools must adapt their curricula to equip students with digital skills to thrive in the modern legal landscape.

Digital Evolution Of The Indian Legal Industry:

  • The Indian Legal System currently prioritizes office work over generations, with numerous courts, advocates, and pending cases.
  • The Digital India initiative LIMBS (Legal Information Management and Briefing System) has improved traditional methods of record-keeping, but it still faces challenges in a rural country with a population of over a billion.
  • This technology aims to make office work easier, quicker, and more secure.
  • The event will feature speakers from law students, advocates, legal professionals, academicians, and legal research scholars, who will share their ideas and provide papers on the sector's past and current solutions.
  • The event will also feature a panel dialogue with business professionals in generation and regulation to address current issues and create tangible solutions for the US.
  • Students can provide answers, identify problems, connect with professionals, and contribute papers.
  • The event aims to promote innovation, generation, and the potential to make changes to the Indian Legal System.

Digital Evolution Of The Legal Industry Around The World:

  • IN UK: Legal firms throughout the United Kingdom are undergoing a transformation in their operations, adjusting to the ongoing digitalization of the legal industry. Despite being deeply rooted in conventional practices, numerous lawyers and barristers are rising to the occasion and prioritizing digitalization as a key component of their growth strategy. This shift is partially motivated by the government's Digital by Default directive, which seeks to enhance efficiency in the country's judicial system by eliminating the need for paper and the desire to maintain a competitive edge. As a result, firms are reducing their reliance on paper, adopting Customer Relationship Management (CRM) systems, implementing Cloud technology, and utilizing mobile devices.
     
  • IN AUSTRALIA: Australian firms and the government are promoting digital solutions and paperless offices through networks like Property Exchange Australia. New Law firms offer technological alternatives, but traditional firms may struggle to integrate technology into their business models. Small to medium-sized firms are keeping pace with the digital progress, but the lack of resources can hinder their ability to adapt and innovate new technologies. Australian Big Law and New Law firms invest in technology, but small firms are still lacking.
     
  • IN RUSSIA: The digitalization of law and legal services has every kind of impact on human rights and daily lives. Russia has achieved significant progress in providing e-services and access to digital information, making litigation more transparent and effective. However, these achievements have come at significant costs for law, the legal system, and individuals, particularly in authoritarian political frameworks. The digitalization of law has led to increased surveillance, censorship, and information control, which can be used for political manipulation. Russia's approach to creating an internet "kill switch" may lead to increased censorship and surveillance, creating uncertainty and mistrust of due process. This has led to increased anxiety in civil society, which consolidates online activism but feels tightened surveillance and prosecution due to the instrumental use of digital law.
     
  • IN AMERICA: Remote working has significantly accelerated digital transformation, making it a part of our lives. The COVID-19 pandemic has accelerated this shift, requiring the government of Canada to plan a digital roadmap. The pandemic has also accelerated the adoption of technologies like augmented reality, virtual reality, and the Metaverse. The legal industry has also adopted technology to streamline processes and enhance productivity. Remote working has led to increased openness to online tools and software for organizing and analyzing data.


Conclusion
The legal industry is a massive industry and to become a fast-working industry adoption of technology is a must as Justice D.Y. Chandrachud of the Hon'ble Supreme Court has rightly emphasized the importance of a balance between technology and human intervention in justice delivery systems. He emphasized the human face of justice and urged judges, stakeholders, and stakeholders to adapt to technology's needs, as it is here to stay.

The legal industry has faced different stages of digitalization, but the fast growth has been seen after the pandemic it has normalized working arrangements, transforming lawyers' work by enabling remote work, virtual conferences, and online filings, transforming their profession. In the future Legal practice in the digital age will see increased automation, efficiency, and specialization. Digital transformation automates repetitive manual processes, increasing efficiency and productivity, transforming organizations from reactive to proactive, and increasing profitability.

There are Challenges including adapting to new technologies and staying informed, while opportunities arise for lawyers and law firms. But still, there are challenges in addressing cases in courts due to a lack of digital literacy. Virtual courts require public education and proper digital tools implementation. Help desks struggle with the digital transition, limited automation, and restricted ITSM solutions. Although different countries are at different phases of digitalization a movement of digitalization of the legal world has been started which will be soon achieved by every country.

End-Notes:
  • Now is the time to embrace digital transformation in the legal industry by Manpreet Dhillon https://contractpodai.com/news/digital-transformation-legal-industry/
  • Digitalisation, Technology and the Legal Fraternity in India https://www.legalbusinessworld.com/post/digitalisation-technology-and-the-legal-fraternity-in-india
  • Digital Transformation In Legal Industry- Improving Legal Operations https://www.leewayhertz.com/digital-transformation-in-legal
  • https://www.linkedin.com/pulse/what-future-legal-practice-digital-age-aditya-tyagi
  • https://legaldesire.com/the-benefits-of-increasing-digitalization-in-the-legal-industry/
  • file:///C:/Users/HP/Downloads/Digital%20Transformation%20and%20the%20Legal%20Industry.pdf
  • https://legaldesk.com/blog/digitization-of-the-indian-legal-system
  • The Use of Technology by Gold Coast Legal Practitioners file:///C:/Users/HP/Downloads/1304-Article%20Text-5080-2-10-20200508.pdf
  • Canada: How Digital Transformation Has Been Making Legal Departments More Efficient https://www.mondaq.com/canada/technology/1185662/how-digital-transformation-has-been-making-legal-departments-more-efficient
Written By: Adv.Jyoti Pawar<

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