LEGAL TECH ASIA: Your guide to the future of legal innovation

Research Papers

Top 7 Digital Transformation Trends in the Legal Sector in 2020

digital transformation

Legal sector in India is at the brink of a ‘digital revolution’!

The 19th century was marked to be famous for the industrial revolution. Similarly, the 21st century is often called the era of digital revolutions. This is especially because of the pace with which digital transformations are taking place in today’s times. It is unprecedented. The digital transformation era is primarily said to have four legs to it:

  • block chain,
  • cryptocurrency,
  • artificial intelligence, and
  • quantum computing

The impact of these transformations has been phenomenal in several sectors. Now, it is the legal sector that has been predicted to undergo a complete overhaul as a result of these. Therefore, it is crucial to analyse the impact that these trends will have on the legal sector in the year 2020.

Block-Chain Technology

The first and foremost change has been brought about by the development of block-chain technology. This technology allows the creation of master data base of information that can be stored, accessed and edited. All of this, by a huge number of people at the same time. Since the operations are carried out by advanced technologies, the possibility of human errors is negated. Banks are predicted to be a major target consumer for block-chain technology.

Nonetheless, the significance they carry for the legal field can also not be undermined. The same can be leveraged to maintain an error free database of the clients with information corresponding to their cases. Since only the lawyer/law firm entering the data shall have access to the private keys of this block-chain, the privacy of confidential information of the client can also be safely ensured. This is one of the biggest transformations in legal tech that the legal sector will witness.

Crypto-currency

National jurisdictions across the world have shown a divided response to crypto-currency. While some have hailed the concept as a major breakthrough, other jurisdictions are apprehensive of its adverse effects. It is often viewed as a threat to their monopoly status. In turn, they have expressed caution against it. As far as the Indian legal position is concerned, the Reserve Bank of India has, starting way back in 23 December 2013, until very recently in April 2018, issued several notifications expressing its opposition to the use of virtual currencies. The entities that are regulated by the RBI have been expressly prohibited from engaging in dealing with crypto-currencies like Bitcoins etc. On the other hand, dealers of Bitcoin have expressed their disapproval of this step by the State as something that is holding India back from matching the progress made by other jurisdictions.

One of the major concerns of States not in favour of crypto-currencies is that since the transactions shall appear on a virtual platform, the task of determining geographical territory or jurisdiction will become next to impossible. As a result there would be uncertainty regarding which country shall have the exclusive jurisdiction with respect to taxation of these transactions. This is further complicated by the restrictions against double taxation.

Artificial Intelligence

The contours of Artificial Intelligence (AI) are still being explored on daily basis. Its utility for various sectors is impressive. The legal sector, in particular, can be a major beneficiary if the potential of AI is tapped to its fullest extent. In fact, it is worth noting that Cyril Amarchand & Mangaldas, one of the leading tier-1 law firms operating in India, has already collaborated with a Canadian entity to employ the use of AI technology named “Kira”. The said technology, it is being said, will help the firm in mapping of clauses in a contract/legal document. As well as assist in due diligence of transactions. Considering that most Mergers & Acquisitions transactions are usually very lengthy and voluminous, thus requiring a lot of man-hours of work on them, use of AI will greatly reduce the tedious and taxing part of the task.

“Ross” is the name of the first AI software attorney that has been extensively been relied upon by law firms in the United States. Some AI technologies also help in predicting the possible outcomes of cases.

Chatbots in the legal sector

This is yet another digital innovation which reduces client management efforts for lawyers. They can have insightful legal conversations with their prospective clients. Such chatbots are often used by many law firms. As soon as a prospective client logs on to the website of the firm, the chatbot shall greet them. They are accustomed to answer certain standard questions. These may relate to the law firm or to the legal dispute. Through this virtual conversation, the client can get a fair ides as to whether it should continue with the firm as its lawyer or not. This decision may be based on factors like, whether the law firm specializes in the kind of legal disputes that the client is involved in, etc.  Lexi and Lawdroid are examples of two such chatbots which are currently extensively in use.

Clouds

The concept of cloud, unlike the previously named digital transformations which are still at their nascent stages, has gained considerable popularity. Even devices which have Microsoft softwares installed in their systems can use this digital technology. MS One Drive and Google Drive are two of the most prominent examples. These allow the users to store huge amounts of data. At the same time, they allow a large group of people to edit and access the data simultaneously. This is extremely useful when a team of lawyers is working on a particular draft. The draft can be shared via Google Drive to the entire team. Thereafter, the comments/suggestions or changes introduced by one person is visible to the entire team in real time. This allows the work to be done with a lot more efficiency in lesser time.

Voice-To-Text Softwares

A major aspect of the legal profession involves taking down notes and other relevant information. For example, when a junior lawyers is briefing his/her senior, or when the judge is dictating the judgements to the stenographer or when the testimony of a witness is being taken down for the purposes of records. However, manual typing on the basis of bare hearing may be both, time-consuming as well as tiresome. It also has the possibility for typographical errors. Instead, there are softwares that allow voice to text conversion. Some of the advanced softwares can not only recognize a variety of accents, but they also claim to be otherwise error-free.

Employment of such technologies can reduce the burden on the State exchequer to a huge extent as there would no longer be the need to employ court clerks and stenographers. Even private parties will benefit from this.

Speechnotes and VoiseFinger are two such examples.

Virtual Assistance for the legal sector

Most written pleadings that are filed in a particular kind of matter in a particular court seem to have a common template. For example, The High Court Rules of the High Court of Bombay, read along with the general rules of criminal procedure provide a uniform pattern of filing of anticipatory bail petitions. The same applies for other kinds of commonly used petitions and applications. Innovators have therefore invented softwares that provide to the lawyers, the basic template for that particular pleading and the all that the lawyer has to do is to enter the specific details pertaining to the parties in every new case. Use of such softwares can save a lawyer time as well as efforts.

Similarly, developments like video-conferencing allow a client to consult a geographically distant lawyer virtually. There are also virtual law-firms who have no brick and mortar existence, however function completely via the online platform. Similarly, the testimony of witnesses residing outside the territorial jurisdictions of the court is taken via video-conferencing. The Code of Criminal Procedure also allows filing of e-FIRs. Complaints related to cyber-bullying and consumer grievances can also be successfully lodged online. The legal sector in India is definitely transforming.

These seven digital transformation trends are sure to give a push to the legal tech sector in India.

Conclusion

With the advent of technology, digital innovations are fast replacing the humans. Though it may save time, effort, resources (paper) and money, the downside is that employments are now at stake. Therefore, a balance must be sought.

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