Harnessing the power of data: A goldmine for legal operations

August 05, 2024

In the rapidly evolving landscape of law firm operations, the integration of artificial intelligence (AI) and data analytics stands at the forefront of innovation. Law firm leaders have quickly recognized the strategic importance of adopting these new technologies. However, there are challenges in engaging legal professionals to use and embrace them.

At the most recent Williams Lea Legal Operations and Administration Forum (LOAF), Edge International consultant and author, Chris Bull, chaired a discussion with leading legal technology experts including Paul Longhurst from 3Kites Consulting, Eddie Twemlow, Head of Operations and Technology at Burges Salmon, and Nick Morgan, Chief Technology Officer at Williams Lea. Together, they discussed the transformative potential of AI and data analytics for law firms and delved into their pivotal role in shaping the future of legal operations. Here are the top three takeaways from the event:

AI and data integration are revolutionizing law firm operations

One of the primary themes discussed was the integration of AI and its transformative impact on legal operations. Chris Bull highlighted AI’s role in leveraging data to enhance efficiency, “Data is of huge value and now for the first time it can be untapped in terms of what law firms can do with it. AI, generative AI in particular, is helping law firms exploit and leverage that data.”

The speakers emphasized the importance of digitizing workflows and capturing data to leverage AI effectively. Nick Morgan spoke about Williams Lea’s proprietary digital platform, ENGAGE, which  tracks well over a million jobs and 2.5 million production hours a year. “The aim of ENGAGE, initially, was really about how we can make Williams Lea become a data driven organization. We have 7,000 people all over the globe, servicing different clients, and we wanted to understand what they are doing, how we share best practices, and how the operating model is changing. ENGAGE manages workflow and just as importantly, the workforce…it really allows us to be data driven in our decision making”.

In the physical workplace, integrating access systems with biometric data was also proposed as a way to create a seamless and secure environment. “Imagine a world where your fingerprint or retinal scan grants you access to systems, buildings, and meeting rooms, and these are all joined up,” said Chris Bull. “This unified model reflects the broader trend of using AI to enhance security and user experience.”

Change management is crucial in successfully adopting data, AI and other new technologies

The integration of AI and digital technologies is becoming essential. However, the success of these projects hinges not just on the technology itself, but significantly on the firm’s investment in change management. One of the challenges within that is how law firm leaders are analyzing the return on investment (ROI) of new technologies. While technology investments come with high costs, law firm leaders need to consider the broader implications on their resource pool, noting that the impact extends beyond just the technology itself, Eddie Twemlow summarized this challenge, alluding to the rapid evolution of technology, particularly with AI, as a key driver for this shift in thinking: “There’s a natural reaction from leaders to think about how we can reduce the cost of our tech to maintain the existing model and to maintain our margins. It’s really important to think about how we might change our models slightly to reflect the technology that is central to our service provision, perhaps more than it has been previously. Increasing engagement will improve the return on our investment in technology and people.” Law firm leaders need to be prepared to adapt their core operations to fully harness the potential of these new tools and processes.

The critical challenge of user adoption in technology implementation also cannot be ignored. “All this stuff’s great, but if you can’t get professionals, lawyers, business services people to use it, then that is not going to amount to very much,” said Twemlow.

Robust change management strategies and dedicated roles focused on driving adoption are equally important in the development of new tools. Law firms must invest significant effort in ensuring that employees understand the value of these tools and are equipped to use them effectively. Nick Morgan referenced a recent article from McKinsey, that stated, “For every dollar you spend on tech development you need to spend a dollar on change management. With GenAI projects, for every dollar you spend you need to spend three dollars on change management.”[1]

Our panel had some cautionary words for mid-tier firms who lack the large teams or deep pockets of Big Law. Paul Longhurst advised that “all but the largest firms would be better off looking to their suppliers for AI innovation rather than creating in-house utilities.”

Data stewardship is needed to build a robust data strategy

Strong data adoption relies on developing a robust data strategy and appointing data stewards. This approach is foundational for capturing and digitizing data, which then allows for meaningful analysis and application. Nick Morgan described Williams Lea’s process in appointing data stewards and creating a data catalog helps maintain consistency and quality, which is essential for effective data strategy and client service, “We’ve got a vast amount of data and one of the challenges we faced was data normalization. For example, if you have eight different law firms, they might each call the same thing by different names. To address this, we appointed skilled people as data stewards to create a data catalog. This allows us to present data to clients in their preferred format while ensuring internal consistency. It’s crucial to focus on data quality and governance at a foundational level when developing your data strategy.”

Ultimately, realizing the full potential of AI and data in law firms requires a strategic blend of technological innovation, robust data management, and a strong emphasis on change management and user adoption. Find out more about optimizing data, download our report today: Turning traces into transformation: Unlocking the power of workplace data

[1] Aamer Baig, Douglas Merrill, and Megha Sinha, with Danesha Mead and Stephen Xu, McKinsey & Company: Moving past gen AI’s honeymoon phase: Seven hard truths for CIOs to get from pilot to scale, May 13, 2024