As the legal industry grapples with technological transformation, Bradley Collins, founder and CEO of LegalTech Talks, brings unique insights from his experience in helping different sectors navigate digital change. In a recent Platforum9 session, Collins shared his perspective on where legal tech is heading and what firms should be watching.
The Legal Industry’s Moment
Drawing parallels with FinTech and InsurTech, Collins suggests legal is now where InsurTech was eight years ago. “What we’re seeing with legaltech is where maybe FinTech was 15 years ago and where InsurTech was eight years ago,” he notes. “Legal is the sector that is next in line to go through this massive change.”
Shifting Attitudes
The industry’s approach to technology has evolved dramatically. Collins recalls early conversations where “the biggest innovation we’ve done is this little thing to our emails that puts emails in folders.” Now, major firms are making substantial commitments to AI and innovation. Notable examples include Ashurst’s global Harvey rollout and Charles Russell Speechly’s recent appointment of a dedicated innovation team.
The Netflix Moment
Collins raises an intriguing possibility: “We’ve seen in nearly every industry a Netflix that’s come up or a Revolut or an Airbnb, which has changed the whole model of an industry sector.” He suggests legal services might see similar disruption: “Maybe we take the top lawyer from the top hundred law firms, put them together with a machine and all of a sudden you have a 10,000 person law firm with just 100 people working there.”
Investment Trends
The sector is seeing increased investment activity, following patterns observed in other industries. “The Thompson Reuters and LexisNexis are just buying these tech companies to increase their capabilities,” Collins notes. This trend is likely to accelerate as more startups enter the space and demonstrate value.
Client Expectations
In-house legal departments are becoming more demanding of their external counsel. As Collins explains, “They seem to be a bit more demanding to their law firms now and wanting law firms to innovate and do things better and quicker.” However, this raises questions about cost absorption and billing models that the industry is still grappling with.
The Partnership Challenge
One unique challenge in legaltech adoption stems from the partnership model itself. Collins observes: “The people that have the power strings to invest in tech, they get paid out on a yearly basis… What incentive do they have to invest in something that may make the company better in years ahead when they’re no longer around?”
Talent Evolution
The industry is seeing changes in talent acquisition and development. Traditional recruitment patterns are shifting, with prestigious firms “exploring hiring from outside of your Etons and Cambridge because there’s talent pools coming from different places now and different types of talent are needed.”
Looking Ahead to 2025
Collins predicts several key trends:
- Continued debate over pricing models and billable hours
- Increased investment in legaltech startups
- Higher rates of technology adoption among firms and legal departments
- More lawyers becoming entrepreneurs, launching their own legal tech ventures
- Growing focus on work-life balance and cultural transformation
The Path Forward
For firms considering their tech strategy, Collins advises against hiding from change. “Those that embrace it and truly embrace what’s going on and wanting to learn, read up on it, talk to people, attending events… that’s the step,” he suggests.
However, he also cautions against rushing: “People are investing in tech or invested in tech a year ago – it’s already redundant today because things have moved on.” The key is finding the right balance between innovation and pragmatism.
As the legal industry continues its technological transformation, Collins remains optimistic: “Society as a whole can benefit from this. We talk about access to justice and democratising access to law… I think a lot of good will come out of the innovation. And I think those that lean in will succeed as well and maybe grow market share.”
The message is clear: while the pace and scale of change may be daunting, the opportunities for those who embrace it thoughtfully are significant. The key is to remain engaged, informed, and ready to adapt as the industry continues its evolution.
