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Scottish law firms are facing many challenges since the UK decided to leave the European in the summer 2016. (Brexit referendum) Then, medium-sized law firms are also facing many of the similar competitions as their greater foils. This event is no doubt that the law firms and legal expert service’s demand remains high, and the pressures to contend in this field while structuring productivity and profitability are increasing. However, with emerging of new competitors to the legal market, the change to fixed charges and extra transparent pricing, along with technological developments, law firms need to think about strategically that where to stay inexpensive and proper. However, law firms usually follow the strategy between on to three years which can help them to keep things under control.
There is massive changes happen in the world and many new opportunities on the surface now which nobody can avoid such as social media, it has changed the way firm’s work, letting the users with direct involvement. Also, immediate news updates and an attractive curation of pictures instantly to assist product uniqueness. Survey shows that 95% of young people track a product via social media.
Brian Inkster stated that, “while predictive coding technology is one of the key forms of AI with a stronger take-up by the legal sector, small to medium-sized law firms do not have much call to take advantage of it.” However, it is now entirely up to the law firms to ensure that they are using well their existing modern technology before others leaving them behind. Up to law firms has successfully adopted these changes into their legal system, so the firms would do better to see at what technology could benefit whether existing or AI. Furthermore, law firms are required to set key priorities to improve their quality of services such as Cyber Security is a great threat to legal businesses. They must look into this challenge because they hold confidential and highly sensitive client’s data. However, security is a major focus, and it makes sense because law firms are always targeted of hackers.
Regrettably, hackers are increasing swiftly, and targeting law firms in a pretty new way. So, therefore, It is the duty of the law firms to make sure that client’s private information’s are safe and protected. Presently firms are aware about this challenge, and they are working on this issue such as, “removing desktop admin rights, adding two-factor authentication for remote access, intrusion detection and prevention systems, DLP, and phish testing of users., “etc.
Profit Growth within Challenging Time
The legal sector providing services to their clients in difficult time which law firms are facing as CEO of the National Association for Law Placement stated that “uncertainty is the hallmark of the future for law firms.” ABS, AT (advance technology) online legal resolutions, and smartphone apps have all playing a vital role in the global village. Therefore, law firms facing tough competition. However, law firms thinking ahead that how to sell smarter, cost effective and quality service to their potential clients and to win their confidence in a tough competition.
Post Brexit Changes
Following the UK’s Brexit votes in 2016, soon after the outcome of the poll, legal professionals of the medium-sized law firms showed their serious concerns about massive changes into economic growth and investments, especially economic uncertainty in the short to medium tenure. It was an interesting time for the medium Scottish law firms to wait and see if they could adjust and tackle these changes in the legal market.
As time passed, we found a positive change in this field because most piercing not only to financial growth from the past 12 months, but hopefully wants to continue in the future or next two to three years. However, still under the surface, many difficulties can be seen, which can cause trouble for the medium law firms’ skill to weather great economic storms. The majority of the law firms are aware of these challenges that they will need to accept, but some are reluctant due to uncertainty about where they must focus their efforts within the competing importance of priorities.
Law firms are reluctant to accept modern technology, and they want to stick on traditional ways to serve their clients. But new idea of Artificial Intelligence (AI) is important as well as which means ingenious rules of onscreen automation and exploration. Although study of AI in progress and the true concept of AI which computers would be very smart as people. It may take little more while. If we say for example, currently “Google” is the most modern form of AI which has the ability to explain natural language processing and examining through countless websites. Also, there was a big number of software programmer which help AI purposes and legal profession too.
There are many ways to help and support law firms through which are as under:
- Training and supervision computerisation
Many software programmers are providing time recording which can reduced and safe the times of lawyers spending hours on the task. Therefore, with the help of these tools’ law firms will be able to generate invoices of their clients automatically at the end of every calendar month.
- Analytical coding
Also, most innovative methods of AI is presently being part of the legal industry which discusses technology-supported analysis and accelerate the e-disclosure procedure.
- Paper gathering
In a short time, several personalised agreements can be shaped by replying to a limited request and filling out the applicable fields.
- Legal research
Lawyers can get legal information online through resources for instance, LexisNexis; West Law and other useful sources are helping out their hunt rules to find out more appropriate case materials. Though, AI tools can also help law firms to create a strategy on the basis of past cases of similar nature.
Numerical transcription has improved intensely on the top of past two decades, such as Siri can now do many jobs, for instance, appointments using only voice alone. However, facilities for instance, RL put on essentials of text gathering to help market from their peculiar legal papers, without meeting a lawyer. And Chatbot can also provide contact to straightforward legal support, which can help clients to have made appeal in case of parking fine.
Most law firms identified that the legal profession market getting tougher and tougher, but even then, they do not seem to have any clear idea for how they will separate and growing market share. As an alternative, it can be seen an inclination towards them because of the comfort zone when handling some of the more crucial problems. While others agreed about the priorities, they recognised are more goals than in reality.
Further to the above discussion, around 79% of the medium law, firms announced their income had increased and grownup ended the last financial year. Therefore, law firms tend to believe that they have done better than their opponents and the market in total.
Client Focused regardless of Revenue and Profit
The study shows that around 54% of medium firms put client pleasure as a key to success, they always put the client’s satisfaction above than income and profit. This is understood that law firms only relying on offering advice on legal matters to their clients so, therefore satisfaction is vital, however, ranking this within an unstable legal market over more outdated business arrangement measures might make it harder to challenge an increasing burden on the market. In fact, medium law firms are struggling to do contrary to their own fundamental area of victory.
Furthermore, medium law firms recognised immeasurable areas for focus ascertained victory, whereas a number of legal experts admit that they still need to reach the target. In addition, around 88% of law firms believe that they are enough (efficient) than their bosses. But the study shows that there are breaks in the execution of exact resolution.
Increasing Profits of Law Firms Continues
A big number of medium firms are confident about the increase of their profit margin in the coming future, suppose the next 12 months. They are confident that they will target private, residential, and commercial clients to resolve their disputes and generate good revenue in the coming years. However, around 59% of the law, firms are hopeful about their existing clients to stay or come back, and they think that existing clients are particularly an effective source of their growing business. Of course, many believe that it is hard to predict and list areas for constant upcoming growth.
A huge number of law firms around 82% believe that business circumstances are harder than comparing to the past 12 months. In fact, medium law firms are struggling and finding it hard to priorities where to target their efforts to gain success. The study shows that there is breaks in the reputation certain to an area and how to fit a firm and ready to meet its goals, with the more prominent breaks in productivity and capacity retaining. However, around 46% of the law firms are needed to develop over the acquisition, though only 25 to 27% individually hold the view that they will be acquired or merge with others. Also, it has seen that in identifying attractive traditions to nurture and grow their businesses, medium law firms always seem reluctant or hesitant to move out of their comfort region.
The above discussion and available sources show that medium law firms seem assured and fully confident about their growth. Their revenues are increasing and growing in the sense that legal experts are providing an important facility to their personal and commercial sector clients. However, under the surface of assurance is a further disordered portrait. Outside of the day to day advice service to their clients, lawyers are aware of market changes and going harder and harder.
Nevertheless, there was an appreciated that lawyers alone cannot be managed the change without the support of professionals in project and business management and advance technology solutions will together play their role. However, a good number of law firms are interested in increasing their development budget. However, up till now, law firms are seemed to work hard in recognising the priority areas. It means that they are observing to confirm a bit of the thing and fighting to make a tangible impression.
One of the creative findings was that about 39% believe in entrepreneurial intelligent is vital in gaining success. Whereas, around 59% are under the impression that they aren’t reaching those goals. It is important to change their mind-set which drives them into the area of success in near the future. In addition, undertaking very similar things to some extent will improve certainly reducing returns and is no alternative for a real, modern and long-term strategy. A specified legal firm’s advice can only worth it if its good quality is something to satisfy the client’s expectation. Therefore, law firms should look into other sources to gain distinction and growth.
The question is that are legal firms ready to move out from their set comfort zone and approve a further business-focused stance? Or will they do the similar things they’ve continuously ended, and guess diverse outcomes?