This year, the global legal services market is projected to peak at $750 billion, despite a coronavirus pandemic that has negatively impacted almost every other sector and marketplace in the world.
The value of this market will continue to increase at a considerable pace too, with projections suggesting that it may reach an impressive $908.26 billion by the year 2025.
Make no mistake; innovation has played a key role in driving this trend. But why is this important and how does it translate into benefits for clients?
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The Importance of Legal Innovation
As the rate of change and technological advancement continues to increase exponentially, law firms have been required to adapt and keep pace by embracing innovation.
This has created a scenario where many law firms and service providers are at a genuine crossroads, as they look to cope with constantly upgrading technology and significant shifts in the legal and legislative landscape as a whole.
But what are the tangible benefits of embracing innovation in the legal industry? To begin with, it’s fair to surmise that the legal work and methodology of the past no longer cut much ice, either from the perspective of clients or individual service providers.
Most importantly, no client is interested in wading through confusing fees and complex invoices, with innovation having seen forward-thinking solicitors streamline their processes and create transparency and simplicity with regards to their billing.
Innovation is also crucial when it comes to the identification and recruitment of legal talent, with the young lawyers of today boasting different motivations and skillsets to their predecessors.
Certainly, young Millennial lawyers boast a strong affinity with technology and its myriad of applications, and as digital natives, they’re ideally placed to help independent firms adapt, evolve, and remain competitive in an incredibly challenging industry.
This is a crucial consideration, especially if you look at how technology has already transformed internal legal processes and helped transform practicing law from an art into a science.
Make no mistake; the lack of a tech-led or innovative approach will leave even established firms in the wake of their rivals in the digital age, and this trend is wholly unlikely to change or reverse in the near or medium-term.
From the Client Perspective – Creating a Viable PropositIon as a Law Firm
Even from the perspective of clients in the digital age, individuals are unlikely to take counsels or law firms seriously unless they’re tech-led, efficient, and ultimately business-focused.
This realization has certainly enabled firms like Clifford Chance to thrive, with legal innovation central to their ongoing success.
According to Global Managing Partner Matthew Layton, who gave an interview to Reuters, “innovation is a central pillar of the overall strategy as a whole” at Clifford Chance, and this is an important lesson for other firms in the industry to learn.
Most importantly, such an approach tends to translate into dynamism, which creates a superior service for clients, while improving efficiency, transparency and creating far greater peace of mind in the case of more complex cases.
Remember, clients expect this type of dynamism from their service providers in the digital age, and failing to deliver it can be highly detrimental to your practice over time.