Main Reasons to Prioritise Legal Automation in 2022
Legal teams and departments face many different issues in 2022 than were faced in the past. The legal profession is hectic by nature, but automation, including legal contract automation, has the potential to free up many billable and non-billable hours. In addition, the element of human error is removed when legal workflow automation is employed.
What is legal automation? What can be automated in legal teams and departments?
Until approximately 2018, there was a fluctuation in enthusiasm for legal workflow automation software; nevertheless, we now see an uptick in interest. This is unsurprising, given that businesses have previously expressed a growing interest in automation solutions. Legal document automation tools can be used to create a variety of legal documents.
Legal document automation is becoming more and more of a requirement for law companies. It saves so much time by creating frequently used papers automatically. These products vary from simple form-filling software to complicated computerized documents designed for single practitioners, “BigLaw” companies, and everything in between.
To make a new edition of a standard document, typically usually begin with an existing document that is comparable to the one you would like to produce. Then, in your word editing application, use “find and replace” to replace any occurrences of changeable text, such as identities and other data. Not only that, this method not only takes time but also provides several potentials for errors.
All of that changes with the introduction of automation in the legal industry, which provides a more efficient approach to generating new documents.
Firms construct templates from their regularly used documents, like intake forms, retainers agreements, pleadings, and more, using legal automation tools. (Templates are included with certain items to help you get started.) Once you’ve created the templates, your program will take care of the rest by generating new documents automatically. This data may be taken from other systems or entered via a guided questionnaire, depending on the program.
Any volume of document creation can benefit from document automation. Transactional papers, where you change common contract forms, are the best candidates for automated legal workflow.
Legal department automation can rapidly prepare the following papers for the same customer once the client’s information is collected:
Purchase Orders, Operating Contracts, Contracts for Business, Proposals for Business, Financial Statements, Loan Contracts, Mortgages, Regulatory Accords, and Non-disclosure agreements (NDAs) are a type of non-disclosure, Wills and Trusts are two types of estate planning documents.
Why consider making legal automation a priority for 2022?
Reducing Time To Contract
Processes that are more efficient: Document automation reduces the time it takes to create new legal documentation and improves service quality. Reduced errors: Unlike human document production, legal document automation inserts client data without errors and can detect inconsistencies based on past deal papers with the customer.
Contracts that are optimized
Generic agreements can be overly wordy, and adding particular words later can make papers lengthier. Document automation systems may optimize text and leave all the essentials in it.
Free Up Time For More High-Value Work
Make the most of your time. The amount of time you and your team spend creating papers may be drastically reduced with document automation. In fact, some attorneys claim that employing automation to prepare papers saves them up to 82 percent of their time. This liberates your highly skilled (and well-compensated) lawyers to deal with more complicated — and important — legal matters and sign new customers.
Boost Legal Activity With Self Serve Options
Improved customer experience: Handling legal paperwork more quickly and with fewer mistakes will improve consumer happiness. Fixed-fee services allow you to earn more money. The billable hour is being phased out of the legal profession.
Enhance the client experience. Document automation reduces turnaround time and reduces documentation errors, both of which will improve your client’s experience. You may provide customers more for their money since your attorneys will spend more time consulting and investigating rather than creating documentation.
What tools can help legal teams and departments to automate their workflow?
Keep your knowledge up to date. Document automation is becoming more common in the legal area. Firms are finding it simpler than ever to automate document creation, integrate document workflows, and bring their businesses into the twenty-first century thanks to new technology.
While preparing legal papers, automation technology can speed up these operations and avoid any missing or incorrect client information. Because the procedure does not involve human participants, legal departments can save up to 70% on document generating time.
As fulfilling as the legal industry might be, it does have certain disadvantages, one of which is the excessive amount of time spent on paperwork. Agreements, retainer agreements, settlement statements, and other standard legal paperwork can be time-consuming. However, technological advancements are assisting in this transformation.
Document automation becomes less important when it comes to judicial domains that demand more bespoke writing. Automating legal documents has a lot of advantages. Firms that are ready to accept new technology receive a slew of benefits, all of which tend to offer them a long-term competitive edge. These were some of the ways document automation may help your company.
This would also result in an increase in the number of legal papers produced. Creating these papers manually was difficult enough, but adding more will be far more difficult. This is likely to incentivize legal departments to adopt automated solutions even more.
When preparing the pilot and reviewing the project’s KPIs, it’s natural to wonder, “Where do we start?” and “How do we choose the correct documents?”
Firms have hundreds of different case files, contracts, and documents on their servers that have been utilized over a lengthy period of time. When there is no common template authorized yet (believe us, this is the case for up to 95% of the businesses), it has always been an issue of how to organize the information from the case files as well as what approach to employ. Who should do it, but what are the steps from case files to automated templates that have been approved?
Many initiatives have failed as a result of the client’s interests being overlooked or ignored entirely. The interests of customers should be baked into the DNA of each new innovation initiative, and the question “how will this technology help us serve clients better?” should act as a catalyst for ongoing change. For example, innovation should allow customers to reduce their service costs, simplify the customer experience and service delivery times, integrate the solution into customer processes, and provide access to the firm’s technology (like digital signing and workflows).
Final Thoughts On Legal Automation
Legal document automation will save legal departments a considerable amount of time and allow personnel to focus on higher-value tasks rather than manually entering customer information into legal document templates.
Legal document errors can result in large amounts of unanticipated expenditures and put businesses in a difficult situation. In today’s uncertain economic climate, businesses must exercise greater caution, particularly in legal operations, to prevent complications arising from a lack of compliance.