Legal Trends in 2023
The legal industry, like many industries in the post-pandemic world, looks very different than it did only a few years ago. Many changes have been influenced by the continued emergence of digital technologies. There are a few trends, patterns, and new technologies legal professionals should be on the watch for throughout 2023.
To start, many law firms have started to look into the benefits of collaborative workspaces. This is a two-pronged trend, with firms not only designing physical spaces that are more conducive to collaborations but also developing policies and processes that encourage collaborative approaches to casework. As a specific example, many firms have invested in smaller office spaces that prioritize conference rooms over individual, private offices. A part of this trend can be attributed to the growing number of millennial legal professionals, who demonstrate more willingness to collaborate with peers.
The provision of alternative legal services is another industry trend expected to continue throughout 2023. A variety of services previously performed in-house have started to be outsourced due to their complexity or time-consuming nature. Countless niche law companies have launched in recent years to handle high-demand services such as contract management, intellectual property management, and basic legal research. Companies that provide these niche services to law firms are called alternative legal service providers.
In terms of technology, many law firms have begun to take advantage of the added security and financial benefits of private cloud technology. While basic cloud-based computing has been used in many industries for several years, private cloud technology means the platform in question belongs solely to the company using it. The lack of public access greatly enhances the security of a cloud network, which is beneficial to all law firms, particularly those frequently managing sensitive case data. Rapid advancements in cyber security have spurred the pivot from on-site data to cloud platforms, as the cost of cybercrime exceeded $10 billion in 2022 in the United States alone.
Cybercrime is, itself, a critical trend to monitor in 2023 and beyond. A 2020 American Bar Association (ABA) survey found that about 30 percent of ABA members had experienced a security breach in the preceding year. A more troubling discovery, however, was that a large number of respondents could not definitively say whether they had been a victim of a cyberattack or not. With cybercrime becoming more complex and costly each year, law firms must continue to invest in the most effective security measures available.
Artificial intelligence (AI) and automation are additional technological developments that are shaping the legal landscape. According to Zion Market Research, the world’s legal technology market will surpass $37 billion in 2026. Workflow automation has been particularly popular among modern law firms interested in optimizing productivity and eliminating redundancies and unnecessary expenses. AI and automation can also support enhanced data management and an overall improved client experience.
Other legal trends in 2023 include an increased focus on inclusion and diversity, embracing remote and part-time workers, and automated documentation. The move away from paper documents is part of a larger trend toward green, sustainable business operations.
