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Despite the legal industrys reluctance to fully embrace tech, the legaltech market has grown swiftly. According to Zion Market Research, it was valued at approximately $3,245 million in 2018 and is expected to grow tenfold by 2026. And once more companies in the field realize the value of tech-enabled benefits, others will jump on the bandwagon, too.

But how do you leap cabinets full of folders and clunky Excel sheets? The industrys resistance to innovation has been hampering growth, with disengaged teams with no proper training for handling modern software.

The best way to navigate doubts about going digital and cloud-based is by dispelling myths, showcasing advantages, and sharing the steps needed for a seamless and effective transition. This way, legal firms can confidently launch into the practices future, ready to take on all advantages of using cloud computing software.

Just like in any industry that handles sensitive information, data security is a primary concern for any legal company. In reality, the feeling seems similar to keeping cash under a mattress rather than in the bank over safety matters; even though cyber risks do exist, there is always an effective solution to prevent them. Every software is eventually targeted for cyber threats. Companies and software developers are in charge of implementing their cybersecurity architecture and deciding how many safety barriers they will execute according to their products needs.

Legal software companies usually get certified by implementing policies that assure law firms that their on-cloud activity is protected. Some of these certifications are ISO/IEC 27001 and ISO/IEC 27017. Antivirus, anti-spyware, and hardware firewalls are additional steps a firm can take to safeguard its operations. However, rest assured that with security-certified software, the SaaS providers IT team will vouch for the datas safety.

The security put in place by SaaS operating on the cloud also entails end-to-end encryption, data at rest encryption (when stored on servers), and in transit encryption (while traveling from the client to the providers server). Additionally, some SaaS operate on the cloud through web services, such as Amazon Web Services, which provide them with a platform to run on. These cloud computing services also have security systems; therefore, a law firms data is secured in several different layers.

One of the biggest reasons lawyers stay on the fence about switching to legaltech is cost and ROI hesitation. Often, practices prefer to stick to their old guns to avoid extra costs using cloud-based software; however, knowing how the software will help cut and control expenses is the trick. Though the market slowed down after the pandemic, companies that use this service still reported yearly revenue growth of 32% in 2021.

The most straightforward answer to the cost vs. benefit dilemma is that practice management automation tools used in legal software leverage artificial intelligence (AI). AI enables firms to work more efficiently, avoid missing billed hours, and reduce time spent on repetitive tasks. Using automation allows companies to negotiate accurate prices, showing the time each task takes. Thus, the software expenses will return as better time-tracking, better billing, and more time spent on billable activities.

AI is not just about keeping track of hours and calculating invoices. Another task it supports is document assembly, where tailored documents are generated by filling in basic information, making it an efficient process with little space for human error. And there are also benefits for clients. Automation boosts the client experience as some legal software offers customer relationship management (CRM) with self-service capabilities. This way, clients only need to answer a few questions to complete an entire document.

Moreover, AI takes an extra step to save time and costs with the technology-assisted review (TAR). This subset leverages machine learning (ML) to run complex tasks, and developing these processes requires the help of someone who inputs and regulates the information fed to it. For example, e-Discovery uses ML to find keywords in several documents, rank them by relevancy to the case, and delete duplicates, saving hours and even days of work. It also handles tasks like extracting data from text, identifying mistakes, missing definitions, and legal traps.

TARs heavily rely on predictive coding in ML and AI. Despite being in its early stages, predictive coding also helps filter documents according to tone, context, and concept in just minutes, sparing lawyers time scrutinizing endless files. However, this feature needs extensive tuning to work effectively, making it financially viable for only a few in Big Law. As technology advances, it will become more affordable for smaller law firms to leverage some of these options.

As a preliminary overview, there are several SaaS solutions to choose from with different features and pricing levels. Firms can leverage pricing according to their needs, thanks to legal software providers scalability and price range, making it accessible for practices of all sizes. Likewise, providers must also be clear about the charges and payment options based on the requested services. After weighing these factors, legal firms should make the right call depending on suitable providers and the size of the firms they assist. The switch should be relatively easy when selecting the most convenient option.

Most providers offer a free trial, so the client can test the product to ensure it meets their requirements even before making a decision. Starting with a SaaS solution should take a couple of hours to a few days but no more than that.

A key point of cloud-based SaaS is that they do not require additional server hardware or an in-house IT team, as the SaaS provides these tools on the cloud, saving companies more expenses. These IT teams are not just there to deliver a suitable product for companies but also to assist them with the transition. The process can be rocky, so legal firms should lean on the providers to help every step of the way. Otherwise, the product cannot function properly, and departments that rely heavily on it will be left unsatisfied.

The advantages of SaaS for legal companies are plentiful, and it is up to law firms to examine all of their options and go for the right fit. Legaltech continues to expand and evolve, and with it, new tools will take legal practice to the next level, making the job easier for lawyers in all fields.

Why do you think cloud-based SaaS is the future of legaltech? Let us know your thoughts on LinkedIn, Twitter, or Facebook. We would love to hear from you!

Link:
Taking Law Firms to the Next Level With Cloud-Based SaaS - Spiceworks News and Insights