WM LawTech Forum: Oil and other challenges of data driven legal services

The UK LawTech landscape is evolving rapidly, with law firms grappling with the opportunities and challenges presented by data-driven technologies. The recent WM LawTech Forum provided a lively discussion on how the industry is leveraging data and artificial intelligence (AI) to enhance legal services. Key themes and insights drawn from the conversation featured these headline points: 

1. Data as the New Oil? Unlocking Value for Clients and Firms 

Whilst somewhat cringing at the much over-used phrase, the Forum openly widely accepted the notion that "data is the new oil," emphasizing that the legal sector has vast reserves of untapped data. However, the primary focus is not just on how law firms can benefit but just as much about how clients can gain from this wealth of information. Participants are exploring ways to help clients leverage data for risk assessment, compliance, and strategic decision-making.  

2. Challenges in Data Readiness and Legacy Systems 

A significant barrier to innovation in legal tech is the readiness of existing legal data. Many law firms hold terabytes of data, yet much of it remains unstructured, outdated, or difficult to extract from proprietary software systems. Firms that built custom management systems early on – typically some of the new entrant firms - now have an advantage, while others are investing heavily in data cleansing and classification projects, which can be a significant barrier to starting the journey. 

3. AI as the “New Drill”: Mining and Structuring Legal Data 

Building on the data discussion, AI was likened to being the "new drill"—a tool to mine and refine legal data to extract the value; just having large amounts of data isn’t sufficient. Firms are digitizing and structuring their vast archives, often through labour-intensive processes such as scanning wills and legal documents. But more exciting is the integration of AI-powered tools to automate tagging, categorize legal precedents, and create databases that can streamline client services and firm operations. 

4. The Role of AI in Internal Business Operations 

Forum members agreed that it is far easier to deploy and gain value sooner from use cases within the business of the legal practice than in the legal practice areas at present. Firms are actively exploring AI-driven efficiencies for internal operations, such as policy management and knowledge-sharing. AI-powered chatbots and document retrieval tools are already streamlining internal processes, reducing administrative burdens, and helping firms prepare for more advanced AI adoption in legal services. 

5. AI in the practice of legal services?  

Better data to unlock better analysis without hours and hours of non-recoverable investment allows for proactive client outreach, streamlined processes, and the potential to generate new revenue streams for law firms. Whilst noting the natural bias towards internal operations, the Forum talked about areas ripe for such investment such as private client work e.g. wills, or the conveyancing process.  With new trading standards requiring "material information" and "upfront information" before property listings for sale, firms are piloting AI-driven solutions to automate contract drafting and data-sharing. This shift is expected to reduce transactional timelines significantly and improve efficiency in property law services. 

In comparatively low-value, high volume areas of work, getting the balance right in terms of the painstaking process of digitisation and the likely return on that investment can be difficult to assess and persuade the wider business as the merits of this strategy. Sorting out data to be AI ready can be a never-ending pursuit whereby if the next steps aren’t realised then neither too is the value from the activity.  

6. Client Attitudes Toward AI and Data Usage 

Law firms are facing a spectrum of client attitudes regarding AI and data usage. Some clients are eager for AI-driven efficiencies, while others impose strict data restrictions, often requiring that data remain within specific jurisdictions. This creates a complex landscape where firms must navigate differing expectations while adhering to legal and ethical obligations. 

7. Access to Justice and the Democratisation of Data 

One of the most significant questions raised was what this activity could unlock at a more macro level. For example, could data-driven legal tech solutions could enhance access to justice? The digitisation of legal information, combined with AI-driven analysis, has the potential to make legal services more accessible and cost-effective. However, challenges such as ensuring ethical AI usage remain hurdles to widespread implementation. 

8. Market Differentiation and the Future of Legal Services 

A thought-provoking discussion emerged around market differentiation. With widespread adoption of similar AI tools and data-driven strategies, firms must consider how to maintain a competitive edge. The consensus was that differentiation would stem from how firms use AI and data—not just the technology itself. Developing self-service client portals, enhancing client engagement, and leveraging insights from integrated legal data were seen as key strategies. 

Conclusion: The Road Ahead for LawTech 

The forum highlighted both the immense potential and the significant challenges facing the legal industry in its digital transformation journey. While AI and data-driven strategies present exciting opportunities, firms must overcome legacy system constraints, structure their data effectively, and navigate client concerns about data privacy. 

The future of LawTech will be shaped by firms that successfully harness AI to enhance client services, optimize internal efficiencies, and differentiate themselves in an increasingly tech-driven legal landscape. 

As the legal industry stands at the cusp of AI-driven transformation, forums like these play a crucial role in shaping the conversation and ensuring that law firms are equipped to navigate the evolving digital terrain. If you are interested in being a part of the discussion and joining the WM LawTech forum, visit SuperTech WM to apply.