End February, Gartner published its first ever Gartner legal IT scenario concluding that many of the disruptions discussed in the scenario are well underway, such as the increasing demand for legal process outsourcing (LPO) and the use of advanced analytics. One big hint though for all those legal IT vendors — it’s time to get big or get out. So, what are people saying i relation to the Gartner study about legal disruption?
So what are people saying about this report?
”A new world of legal work is coming, whether we welcome it or not.”
In the article A new world of legal work – agile lawyers and smart machines Virtual Intelligence states that the mere fact that Gartner is focusing on legal IT pinpoints the importance of the topic and the technology shake-up that awaits for the legal industry. The article is a good summary of current legal discussion with relations to mainly Big Law firms and references to James Furlong, Brian Inkster and others.
”Legal departments become more sophisticated”
Christina Wojcik at Seal Software has made a thorough assessment of the report stating that she upports the premise that “CLOs must engage CIOs to get control of legal and regulatory compliance costs and to take advantage of advanced analytics and alternative legal services,” I would slightly revise that to say, “CLOs and CIOs must take advantage of advanced analytics and legal services to augment insufficient internal resources to gain control over business risk and regulatory compliance costs.” Gartner describes using advanced analytics to gain control of costs and the opportunity to gain efficiency. As Legal departments become more sophisticated in their technology and their technical skills, the routine tasks become automated, which allows for increased self-service operations. Legal departments within highly regulated industries are already identifying and predicting where the regulators are going to focus next. They know where they are weak and are beginning to adopt sophisticated analytics to mitigate potential risk. The analytics are preparing the business for regulatory ambiguity while recognizing patterns that make compliance and business risk predictable.
”General Counsels Can No Longer Be Just Corporate Lawyers”
Selectica’s Patrick Stakenas argues in his article that Gartner is at the forefront of this research and places the General Counsel in the center of the Legal organization of the business rotating around the sales department, procurement, IT and of course the legal department. Gartner notes in recent research that “highly skilled legal IT analysts and modelers will find new demands within the legal professions and associated technology providers. By 2019, 75% of corporate legal and IT departments will have shared staff.” Vendors of contract management solutions, big data and semantic analysis solutions are finding new markets in legal, IT, procurement and sales. Technology vendors are broadening their scope outside of pure contract management, matter management, risk management and compliance management for Legal departments and expanding their offerings to include strategic sourcing functionality and providing tools to streamline the selling organization going from proposal to contract. It’s clear that Gartner research supports the shift in the GC world.
”Law+technology is one of the growth sectors”
Daniel Martin Katz concludes in his article that the intersection of law+technology is one of the growth sectors within legal and as such it is a very exciting time to work in this area. Arbitrage opportunities are temporal in nature and given the highly competitive environment among law schools, it does not bother me if other law schools do not make this a priority. It allows those of us who are so inclined to build relationships with the leading folks in this emerging industry sub-sector before it lands on the radar of others.
”Disruption comes, and is already coming, from our customers.”
In conjunction to the report Christopher T. Anderson argues, “The debate misses the real point. Disruption does not come from industry. Disruption will not come from law firms. Disruption comes, and is already coming, from our customers.” Source