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Cost of AI lawtech to fall - law firms to revolutionise sooner than thought?

21th November 2018

The majority of AI legal tools are at present too expensive for law firms to utilise.
 
However, the lawtech 'tipping point' (the point which will revolutionise law firms and their current business structure) could be less than a year away.
 
In the field of contract review, the cost of new legaltech is falling.
 
Jomati consultancy states:
 
“Undoubtedly, when vendors offer AI-assisted contract review tools at a price that makes the technology’s usage a viable commercial proposition for any firm undertaking this type of work, take-up will increase rapidly.

This, in turn, will require the legal sector as a whole to reconsider its pricing of such services — or risk losing out to competitor firms who have already made the change.

At present, we are probably not yet at that tipping point, even within the top end of the commercial legal market. But it is almost certainly a matter of years, if not months, before that point is reached."
 
What would this mean for the standard law firm structure? Jomati predicts that the traditional pyramid model could steepen dramatically into a spike, as less roles are made available at the bottom of the structure.
 
It is not just law firms however who will be implementing these tech changes over the upcoming months. Universities are beginning to incorporate computer science and technology into their legal education. UCL, Swansea and Suffolk University are some of the few who are running LLB or LLM courses with legal tech aspects. Allen & Overy have also launched their own legal tech graduate initiative.
 
These non-legal skills will play a greater role over the next few years, with the legal sector undergoing drastic changes as it aims to keep up with growing trends.