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SSTC has recently come into contact with the world of Legal tech several times both in our lines of work and in speaking with an experienced ex-colleague in the industry. This colleague was very keen to impress on us how seriously leading companies are starting to take legal tech, noting that a recent Microsoft keynote on AI had included several practical examples of the use of large language models in professional workplaces, and that all of these examples had been legal tech deployments. Given the space’s growing importance to our business, and to the businesses of our customers and partners we thought a short explainer and overview on the space would be useful.
What is Legal Tech?
What is Legal Tech?
Legal tech refers to the use of technology and software to streamline and improve the delivery of legal services.
This is usually delineated into two subcategories:
Process/business focused technology; overlapping strongly with business critical systems in lots of other professional services businesses such as financial, ERP and other more generalised systems
Practice bases systems such as case/matter management systems, discovery tracking, document review tools, compliance tracking systems, and suchlike which are more specific to the actual practice of the legal profession.
Throughout this article we will explore how the still fairly young industry is taking shape in the United Kingdom, where it may be going, and how the direction of the legal industry may be a leading indicator of the direction of tech adoption in professional services.
What are the UK's Traditional Law firms doing in this space?
What are the UK's Traditional Law firms doing in this space?
AI Integration and Automation:
AI Integration and Automation:
Clifford Chance: Clifford Chance has actively implemented AI to streamline complex legal processes, with a particular focus on due diligence, contract analysis, and compliance. Key initiatives include:
Contract Analysis with Kira Systems: Clifford Chance uses Kira, an AI-driven platform, to automate contract review and clause extraction. This allows them to handle large volumes of contracts during mergers, acquisitions, and regulatory compliance checks with greater speed and accuracy.
ESG and Compliance Solutions: Leveraging AI, the firm has developed tools to monitor compliance with environmental, social, and governance (ESG) criteria, enabling clients to meet regulatory requirements efficiently
Allen & Overy: Allen & Overy has similarly embraced AI, focusing on transforming legal service delivery through proprietary tools and partnerships. Highlights include:
Harvey: AI Chatbot and Legal Assistant: In 2023, Allen & Overy adopted Harvey, an AI-powered legal chatbot built on OpenAI’s GPT technology. Harvey assists lawyers in drafting documents, conducting research, and automating routine legal tasks, significantly reducing turnaround times.
Derisk AI: This in-house platform uses AI to assess potential legal risks in contracts and transactions, allowing clients to make informed decisions with confidence.
Partnership with Luminance: Allen & Overy employs Luminance’s AI technology for due diligence and document review. Luminance’s machine learning capabilities help identify patterns and anomalies in large datasets, improving accuracy in high-stakes matters.
Tech Spinoffs
Tech Spinoffs
Clifford Chance
Create+65
Innovation lab for exploring AI, blockchain, and other advanced technologies with a focus on the Asia-Pacific region.
Ignite
Legal tech training program within Clifford Chance to upskill lawyers and technologists in understanding and leveraging emerging technologies.
Allen & Overy
Fuse Innovation Hub
Legal tech incubator where startups, tech companies, and Allen & Overy’s legal teams collaborate to develop and refine cutting-edge legal technologies.
Responsible for bringing Luminance into A&O use, and creating Harvey based off openAI’s GPT model
Freshfields Bruckhaus Deringer
Freshfields Lab
Global initiative designed to innovate client services and improve internal efficiencies. It combines AI, data science, and digital collaboration tools to create tailored solutions.
Linklaters
Nakhoda
Tech subsidiary focused on building bespoke legal tech tools, such as smart contract platforms and automation solutions for financial agreements.
Re:link
Resourcing platform that matches Linklaters’ clients with experienced legal professionals for short-term projects
Slaughter and May
Collaborate
Innovation program that brings together legal tech startups and the firm’s legal teams to pilot and implement new technologies.
Fostered partnerships with AI providers like Luminance and ThoughtRiver for document review and risk assessment.
Where Is Legal Tech Headed in the Next 3–5 Years?
Where Is Legal Tech Headed in the Next 3–5 Years?
The legal tech market is poised for significant advancements, driven by the adoption of cutting-edge technologies. AI-powered tools like Harvey, an OpenAI-based legal assistant adopted by firms like Allen & Overy, are likely to become standard for automating tasks such as legal research, document drafting, and risk analysis. Contract lifecycle management (CLM) platforms like ContractPodAi will see broader adoption, helping firms streamline everything from contract creation to compliance tracking. Tools designed to enhance client communication, such as real-time case tracking dashboards and interactive platforms for updates, will reshape client-lawyer interactions. New players in the market are also expected to introduce specialized platforms, such as automated dispute resolution systems and AI-based litigation outcome predictors, to address niche needs.
What ripple effects can we expect for other Professional Services?
What ripple effects can we expect for other Professional Services?
The shift in legal technology provides a roadmap for similar transformations in other professional services sectors. For instance, in accounting, AI-based tools like MindBridge AI Auditor could become mainstream in identifying anomalies in financial audits. Tax software platforms could integrate predictive AI, allowing firms to offer proactive planning services tailored to individual or corporate needs. Consulting firms might adopt collaboration platforms similar to legal tech solutions like Legatics, enabling more seamless project management for clients.
In financial services, blockchain-based smart contracts and real-time compliance monitoring tools are likely to mirror the advancements in legal tech, offering more secure and efficient transaction management. Industries that rely heavily on document review, risk assessment, and compliance tracking—such as insurance and real estate—may also adopt products like Luminance and ThoughtRiver to reduce time and labor costs.
Legal tech is not only transforming its own field but is also setting a precedent for efficiency and innovation across professional services. By 2030, the integration of AI, blockchain, and automation will redefine how industries operate, with the legal sector continuing to lead the charge.
What are some leading UK companies in the Legal Tech space currently?
What are some leading UK companies in the Legal Tech space currently?
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