Our understanding of Artificial Intelligence (AI) has evolved considerably since John McCarthy, the father of AI, coined the term in 1955. With the growing emergence and visibility of machine learning, deep learning and numerous other AI terms, understanding how to harness the power of AI for your law firm can be challenging. But AI is a critical technology for the legal professional, and here we provide an introduction to its many applications.
What is AI?
AI has rapidly moved beyond the realm of speculative fiction and now has many real-world, practical applications, including for law firms. Artificial Intelligence imitates certain operations of the human mind, and it is the means by which complex tasks are completed by machines that would otherwise require human intelligence. According to Deloitte, 100,000 legal roles will be automated by 2036. AI is certainly slowly but surely transforming the whole legal profession, so it’s importance to understand its true potential.
Legal Automation
Legal automation, powered by AI, benefits the profession considerably. Legal automation is the use of software to automate previously manual or routine tasks that normally constitutes a work task of a fee earner. Of course lawyers have to employ their intellect and creativity to do their job, but there are also many aspects of their roles which are administrative and routine. Legal automation exists to free up a lawyer’s administrative workload, and instead focus their time on more complex, billable tasks. Automated billing management, automated correspondence, and contract automation are some of the tasks managed by legal automation software.
Insights and Analytics
Lawyer productivity is important, particularly in the era of remote working. Accurate insights and analytics can drive an effective business strategy. And again, AI tools can provide law firms with important metrics such as realisation rate (the number of billable hours invoiced divided by the number of billable hours worked), and the ratio of billable hours to non-billable hours. AI analytics can measure a law firm’s precise financial performance and guide firms towards profitability.
Legal Compliance
Legal compliance is a challenge and expense faced by all firms today. Legal case management software, powered by AI, can streamline and automate activities and workflows, thereby ensuring total adherence to the regulations and requirements of HMRC, the SRA and UK Law Societies.
Billing and Time Tracking
Intuitive time recording systems, mobilised by AI, work to reduce administrative workloads. By investing in legal case management software, lawyers (fee earners) never miss a billable minute, since its AI tools automatically record all fee earners’ work within the browser system. Fee earners can also track time via their mobile device. Legal case management software accommodates the nuances of the work of fee earners, who can select whether work is chargeable or non-chargeable via a simple drop-down selection. The legal automation software can also provide variable charging rates, across a range of clients, either per unit of time, at prescribed rates, on a fixed cost basis, or as a quarterly charge. The system can also autogenerate invoices. A manual billing process is time consuming and costly. Instead, by utilising law firm billing automation firms can increase their profitability by leveraging the power of machine learning.
Today AI and Machine Learning enables law firms and local councils to use advanced analytics to their advantage, driving smoothly automated legal processes. Try a demo of Lateral today, and experience our industry-leading software for yourself!