How LegalTech tools assist entrepreneurs in overcoming internal barriers on the way to success
The fast pace of the development of digital technologies opens up new opportunities both for large corporations and for small and medium-sized businesses. High-tech technological solutions enable us to improve the efficiency of companies, partly automating routine functionality.
Apart from it, technologies help to transform a potential of human resources, changing the usual patterns of professional competencies in line with the challenges of time. LegalTech solutions allow us to achieve it in the legal sphere. Anticipating the largest conference on innovations in Russia LegalTech. Black Edition, experts revealed the role of LegalTech in business development in the most diverse spheres.
The report of the U.S.-based Zion Market Research says that in 2018 the entire global LegalTech market volume exceeded $3.2 billion. The company says that by 2026 the market volume will total to $37.858 billion. Tobias Heining, president of the European Association LegalTech (ELTA), revealed how the developing LegalTech market will look like in 5-10 years:
“At the bottom level, technologies completely replace human work as customers are less and less willing to pay for the manual performance of simple tasks. At the level of the main processes of the company, new solutions will boost the efficiency and speed service delivery. Even the most complex processes will undergo through the optimization. Obviously, we have to wait until the first “sprouts” of innovation appear in intellectual sectors.”
Ari Kaplan, famous lawyer and attorney, Fastcase 50 honoree, says that in the current market conditions the main task of any business is to stay in demand, therefore, it is very important to be able to track the trends and adapt to them. “Although supporters of innovation often argue that technology will not replace human work, no one doubts that they will displace and change many professions. Therefore, the main guarantee of success in a new reality is the ability to adapt,” says Ari Kaplan.
Viktor Naumov, Head of the Russia IP, IT and Telecommunications practice, Co-Head of Europe Internet & Tech Regulator, explained how representatives of small and medium-sized businesses implement the latest technological solutions in their operations: “If the changes are related to simple and typical components of business processes, middle-size businesses also try to automate them. Along with it, specific offers of diverse range of quality and functionality emerge for small and medium-scale business; they have existed for a long time and have the reputation of a solution to organize document circulation, accounting, but there are also absolutely new spheres such as LegalTech.”
Oksana Balayan, Managing Partner of the international law firm Hogan Lovells in Russia, told us in more detail about legaltech development in Russia and its benefits for entrepreneurs: “Russia still falls behind Western countries in legal tech development. First of all, this underperformance is obvious in the regions where people are used to working in line with old schemes.
Investments, in most cases, are aimed at Moscow. For example, the market size of legal services in the US is a way bigger than in Russia. Nevertheless, Russia started its way to digitalization. Many companies are switching to a comprehensive electronic document management system (EDMS). The areas of development include machine learning, which increases the effectiveness of lawyer. Some startups have already started to develop NLP technologies and voice recognition. Companies now need to improve business processes in their legal departments.”
Balayan said that the legal sector has a great potential to improve efficiency, facilitate processes and provide new types of legal services in general. “Once again, I’d like to stress that automation does not allow to refuse from services of lawyers, but enables to use them in another capacity, revealing their professional potential,” the expert says.
Ekaterina Tyagay, head of the Sensitive Matters practice of the Pen & Paper Bar Association, said that in terms of implementing LegalTech solutions in Russia was in a similar position to that of many European countries: “Russia treats new solutions with curiosity, a certain fear and a readiness to introduce some products in wide circulation.”
At the conference Skolkovo LegalTech. Black Edition, held on November 29 in Skolkovo, experts will share more information with the public about the barriers faced by entrepreneurs today on the way to digital economy and explain how LegalTech solutions can prevent them. The detailed program is available at the website https://www.sklegaltech.com/.