The Main Trends in the Development of the Legal Services Market

The global legal services market surpassed the value of $700 billion in 2020 and continue to grow despite the pandemic. Predicted growth reaches $1,145.9 billion in 2030 according to The Business Research Company. Where it will go from there, nobody knows! For now, we can only expect the market to grow and new trends to evolve.

It’s not enough to just go with the flow to stay on top. You need to actively run with the flow and attempt to outrun it. If you can foresee trends and implement them in your practice before your competitors do, you’re a winner. To get ahead, take a look at the main trends in the legal services market right now.

The wide use of technology

Both clients and law firms have realized the benefits of technology. It’s safe to say that clients prefer to work with law firms that are more technologically advanced.

• Cloud-based solutions allow firms to store all the documentation in one place and have access to it from anywhere in the world, from any device.

• Law firm software makes documentation management and simple tasks like proofreading contracts so much easier and less time-consuming.

• More firms are using CRM tools because they make it easier to stay on top of projects and clients plus track deliverables and KPIs.

Cybersecurity implementation

As more firms begin to use technology, the more they become susceptible to cyber attacks. That is especially relevant for firms using Cloud-based solutions to store their sensitive data. In the coming years, everyone will have to protect themselves from cyber-attacks.

Data security implies safeguarding clients’ data, which may include confidential information like property details, witness statements, and contracts. Technologies like two-factor authentication and email encryption will become more common in the coming years.

Virtual assistants

While the role of a lawyer in the legal profession is not on track to becoming obsolete anytime soon, clients have taken it upon themselves to self-educate. People who are facing less serious legal issues have begun to seek help from self-help websites and virtual assistants.

Money is the greatest issue for most people facing routine legal troubles. Many cannot afford to hire a lawyer even just for a consultation, so they’d rather do the research on their own. Similarly, they can turn to paralegals and other professionals who work in the field but are not technically attorneys or lawyers.

AI technology is taking rapid steps forward, and soon enough, we might be welcoming a wholesome AI solution that will be able to give tailored legal advice. On the other hand, more law firms may begin to develop and implement their own AI solutions. Technology can also serve as an information depository, as it can store much more data than any human being.

People speculate that AI may turn against actual law firms and become their competitor, eventually taking over the legal field. For now, that is the stuff of sci-fi movies and novels. Being a lawyer still requires the human factor, so computers have a thing or two to learn from us.

Freelance lawyers

Freelance lawyers are gaining popularity in North America. They can be just as experienced and knowledgeable as the lawyers that choose to work for law firms. In fact, most freelance lawyers started as associates in big and small law firms. Now, they have the freedom to make their own schedule and choose their clients.

For clients, working with a legal freelancer is a great solution for many legal processes. This extension of the legal profession is growing, as it’s a more flexible solution for both clients and lawyers. It’s especially suitable for times like these when working remotely is available to everyone. It is expected that more lawyers will turn to freelance and enjoy the life of self-employment. Similarly, more clients will choose to turn to freelance professionals for legal advice.

Accounting firms offer legal advice

The big four, otherwise known as PWC, KPMG, Deloitte, and EY, are huge consulting firms that everybody is familiar with. Ever since 2003, all four have been expanding their legal services. All saw massive growth since and employed more legal attorneys to cover the increasing workload. This trend indicates that we should expect to see huge accounting firms take on more legal work.

The reason for that is that corporate clients like to get all of their accounting, consulting, and legal advice from one place. If a client already works with one of the big four, they would also prefer to add their legal issues to the package. As the firm is already familiar with the client and their business, they can continue to provide a great service and handle the legal aspect as well.

Globalization

As large firms continue to grow, they need to grow geographically too. Acquiring smaller firms overseas allows them to extend their services to all parts of the world. In the coming years, we can expect large firms to continue to do that, thus minimizing their competition in the form of smaller, local firms.

Legal networks are growing in popularity too. A legal network is a system of smaller firms that offer tailored legal advice. All the firms in the network are connected by the same billing system and one point of contact. Though we’re not looking at a possible monopoly or duopoly, there will be fewer small players on the market.

On a positive note, globalization welcomes more diversity in the workforce. We can expect people of all ages, genders, and ethnicities to work side by side.

Change for the better

Though some people like to argue that the legal profession is resistant to change, there comes a point where you can no longer resist. In that case, it’s better to go with the times, or rather be ahead of the times. Predicting trends is better than following them; that’s what can give you an advantage over your competitors.

Whether you’re a large corporation or a small family-owned business, you can learn something from the main trends in the development of the legal services market. Implement law firm software or invest in AI. Whatever you do, stay ahead of the competition!

This article does not necessarily reflect the opinions of the editors or management of EconoTimes