Business requirements for legal and legal tech in 2024
We live in a time when the synergy between the legal department and the business is increasingly relevant to both. But in the companies' landscape of 2024, the needs of the business present new challenges to the legal department. In this new chapter of our blog, we will explore these needs and how legal tech is a way to help the legal department and position it alongside the business as a central element in meeting its demands. Let's start this journey by looking at what the business will want from lawyers and how they should prepare to give it what it wants. Let's get started!
In this blog post, you will find
- Business demands on legal
- Legaltech at the heart of transformation
- But what does the business want from legaltech?
Business demands on legal
Business expectations for the legal department in 2024 are high. From speed of decision-making to agile management of legal processes, the legal department is expected to work more openly, rapidly and collaboratively with the rest of the business. The legal department, in the process of empowerment and tasked with positioning itself alongside the business, must step up and respond to these demands.
Let's look at some of the business demands faced by the legal department:
1. Speed and agility
Speed. Today's business environment demands agile responses, and the legal department must adapt at a rapid pace to provide agile and effective legal advice. Establishing appropriate Key Performance Indicators (KPIs) will make measuring the legal department's performance much easier. It will be a way of demonstrating to the business the high volume of cases and transactions it is working on. Similarly, as discussed in the next section of this article, legal tech will be a key ally in meeting this demand for effectiveness.
Establishing appropriate KPIs will make measuring the legal department's performance much easier.
2. Going beyond compliance
Changing regulations requires a proactive approach to compliance. The legal department is expected not only to protect the business from potential sanctions by interpreting the relevant regulations but also to ensure that all of the company's business activities comply with established legal requirements. Through legal operations that affect the business in many ways in its various departments, the legal department is partly responsible for ensuring that the business thrives and moves forward.
3. Effective collaboration
As well as operating as an independent entity, the legal department is expected to work effectively with other departments and teams within the organisation. The ability to communicate clearly, share information promptly and work in efficient synergy with different areas is presented as a key competency. The demand for agile collaboration reflects Legal's need to respond quickly to business challenges and to foster a culture that encourages departmental networking.
Legaltech at the heart of transformation
Given business needs and the importance of legal operations to all departments, the legal department has an opportunity to position itself as a key business partner. We have already seen that companies are looking to the legal department not only for legal advice but also for an effective partner that can increase productivity while minimising risk. This is why Legaltech, with its ability to streamline processes and improve efficiency, is a key strategic tool for modern legal departments.
It's not about implementation for implementation's sake. It is not about taking the most powerful technology and using it blindly. Technology is necessary, but it must be adapted to the processes and uses of each legal department, and it must be implemented gradually. Slowly and carefully, finding the right match between needs and technology, the department will find solutions that facilitate its work and encourage digitisation.
But what does the business want from legaltech?
We have looked at the business needs on the legal department and discussed the importance of legal technology, but what about the legal department's demands on technology? What will technology vendors need to offer the legal department to stay ahead of the curve this year?
1. The quest for seamless integration
Legal technology needs to be seamlessly integrated into the fabric of the business. The ability to interact without errors with other tools and platforms is essential. Legal technology must be able to provide this connectivity, while at the same time merging with the needs and processes of the legal department.
2. Continuous innovation: a must
Firms are looking for solutions that not only meet their current needs but also evolve. Legal technology needs to be at the forefront of innovation, providing updates and enhanced functionality to its customers. Solutions must have a pre-defined roadmap showing their product ambitions.
3. Implementation of artificial intelligence
To speak of generative artificial intelligence is not to speak of a fad, but of a technology that, skilfully integrated with existing ways of working and technologies, can be a paradigm shift. In legal tech, generative AI is set to occupy a key place, to become an unprecedented enabler, an efficient assistant that will help with manual and repetitive tasks and make room for high-value-added tasks.
4. Boosting efficiency in contract management
Within the legal tech spectrum, Contract Lifecycle Management (CLM) stands out as a fundamental solution for the legal department. Managing contracts efficiently, from creation to renewal, has become an imperative. In this context, CLM not only simplifies contract management but also helps to ensure compliance and risk reduction.
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In 2024, the relationship between the legal department and technology, driven by legal tech, will be more symbiotic than ever, with business demands acting as a catalyst for the constant evolution of both. While agility, compliance and efficient collaboration have become imperatives, the empowerment and digitisation of the legal function is emerging as the winning formula to meet these challenges. Are you ready to take on the challenges of legal? If you are, don't miss the next articles on key technologies and trends in the legal sector that Bigle Legal will be bringing you. See you next time!