Introduction

Digitalization does not stop at the legal market. Accordingly, the term "LegalTech" is on everyone's lips. But what is behind it – and how can you benefit from this development? Lawyer and Executive Board Member of the Swiss LegalTech Association Caroline Danner explains the basics in this guest article and answers the most important questions.

LegalTech – what's behind it

LegalTech – another buzzword like FinTech, RegTech or MedTech. What is LegalTech about, and more importantly, is LegalTech needed, and what benefits does LegalTech bring?

LegalTech is a shortening of Legal Technology and refers to the field of information technology that automates legal activities. However, there is no uniform definition, and the term is used differently. By combining law and technology, various goals can be achieved: on one hand, the efficiency of legal work can be increased and legal activities can even be automated; on the other hand, potential clients can have easier or automated access to the law. It is therefore also assumed that LegalTech will significantly change or is expected to change access to the law.

But what does this mean specifically?

LegalTech for lawyers

Search engines make our lives easier in many different ways. Search engines also make the work of lawyers much easier. Where hours of research in libraries were once necessary, search engines now support finding relevant case law, books, and journals in split seconds. This is by now no longer new. So why a "new" term LegalTech?

LegalTech applications now support lawyers in several areas. Starting with job-specific applications such as dictation tools or ERP (Enterprise-Resource-Planning) and CRM (Customer-Relationship-Management) tools for lawyers, who must adhere to strict legal as well as professional obligations. However, today it is not only applications for efficient administration that are on the agenda. Rather, today legal work itself is being made more efficient with technical support, beyond the research work described above. For example, applications for document creation, which often do not require programming skills, are currently popular. Artificial intelligence is used for document reviews. Today, not numerous teams of lawyers have to stand by for days for due diligence (which is understood to mean the examination of a company up for sale by a potential buyer). A significant part of the work can be taken over by the machine.

LegalTech for clients

You do not have a legal background and may now be wondering why LegalTech is relevant to you or could be relevant. The relevance is even multifaceted.

On one hand, one can of course argue that the work of lawyers is made more efficient through technology, and thus the prices or effort (especially lawyers still like to calculate their fees based on their effort) decrease. This is positive for clients.

On the other hand, clients are offered completely new opportunities for utilizing legal services through LegalTech. This usually occurs via so-called marketplaces, where supply and demand are brought together via platforms. On marketplaces, very different types of services or even products are "traded".

Jurata is an example of such a LegalTech offering. On the platform, an expert directory for lawyers is offered, combined with the possibility of direct contact. In addition, blog articles provide information that makes it easier to get a quicker understanding of a specific question and to find and consult a specialized lawyer in the relevant field.

On marketplaces, direct services in the form of products are also offered to end customers. The examples of such services are numerous. They range from the independent creation of a mutual divorce or separation agreement including the necessary requests for a court, to the calculation of possible compensation for flight delay, cancellation, or the like based on passenger rights, to answering specific questions by a suitable lawyer.

In the corporate client sector, the provision of flexible work resources and the obtaining of comparative offers are also popular areas of use for LegalTech providers via the corresponding platforms.

Where it was not always easy to find the right lawyer as a client in the past, this is now significantly easier. In addition, there are numerous offers in the legal field that allow you to decide whether you even need to involve a specialist or whether you are already well-served with a "legal product" such as a contract template or a generator for privacy statements.

How to navigate the jungle of offers?

This question arises equally for end clients and lawyers. Startups in the LegalTech sector are founded almost daily. Having a constantly up-to-date overview of all offers is almost impossible. Much more important is therefore knowing that there might be an offer for your need or question. This already helps you to come across relevant results via search engines on the Internet.

For lawyers, it is also important not only to know individual offers but to have a somewhat broad picture of which processes can be optimized and what possibilities arise with LegalTech. Rarely is only one LegalTech solution used in the business environment. Rather, it is an interplay of different areas that can be supported with technical solutions. Finally, it is not insignificant to know how the market behaves, which digital solutions develop into standards. Missing out on the essential developments of digitalization is something most want to avoid. LegalTech is simply to be understood as a "special discipline" of digitalization.

Accessing the corresponding basic information is relatively simple. Both through articles and video recordings, extensive LegalTech knowledge is available on the Internet. However, if you want to understand individual solutions or the market more specifically, corresponding events – both physical and online – and of course the exchange within the relevant professional circles are recommended.

Benefits of LegalTech

That the numerous and diverse offers today almost look like a jungle should not discourage. Rather, imagine what opportunities you had – both as a client and as a lawyer – just 10 years ago. It becomes clear that the question should not be asked whether LegalTech is needed. Rather, ask yourself in what framework you are already using LegalTech and in what areas you can be supported by LegalTech. The fact that you found your way to Jurata's platform and are reading this article speaks for itself as the best answer.

Caroline Danner