How should law firms effectively harness legal technology? Is anything off the table? Vandana Chatlani reports
Law firms are making serious investments in legal technology, lured by the promise of automated efficiency, higher billings and an escape from monotonous tasks.
They have seized on technology that assists with the entire spectrum of legal services. Platforms like Luminance, Iolite, Latch, LawGeex, MikeLegal, Provakil, ChatGPT, Zoho, Manupatra, Grammarly, Epiq, LexisNexis InterAction+ and Uberall – among others – are jostling to be providers of choice for both operational management systems and core legal work.
“The disruption brought by legaltech is rapidly accelerating and reshaping the legal landscape,” says Mayank Arya, COO & practice head – data privacy at Ashwathh Legal in New Delhi. “By embracing it early, firms can gain a distinct competitive advantage.”
Gautam Khurana, the managing partner at India Law Offices in New Delhi, believes it is “a race against time and law firms need to invest in legaltech in all areas possible. Anything that can be mechanised will witness rapid changes … lawyers and law firms cannot afford to be left behind.”
Rohit Shukla, chief digital officer at Khaitan & Co in Gurugram, says: “Technology is changing very fast and, if we do not adopt it, then we will be history very soon.”
Ranjan Negi, a partner at Mettle Legal in Gurugram, points to the Indian judiciary’s measures to improve and “digitally revolutionise” across physical courts while also introducing e-courts and digital archives. All of this is “testament to the fast-paced digital transformation of the legal industry in India,” says Negi. “We are so deep into it that a situation not involving the application of legaltech in the industry is unimaginable.”
Pravin Anand, managing partner of Anand and Anand in New Delhi, says: “Newer business models, such as edtech, agritech, AI and the metaverse, call for the legal industry to take off the baggage of the old and embrace the new.”
Anand says all law firm services – apart from the qualitative aspects of people management, crafting legal strategies and negotiations with counterparties – should be handled with legaltech. “This decade will see lawyers turning into coders, or working very closely with coders, to come up with tech systems and designs to serve the unique needs of a particular project or client.”
Law firms that don’t stay ahead could find themselves outpaced – by clients, as well as their peers. In-house lawyers are increasingly leaning on legaltech solutions to curb spending on external counsel. Those in tech, e-commerce and the thriving startup ecosystem are more likely to partner with lawyers and firms that show tech savvy.
“Clients are increasingly looking for more efficient and cost-effective legal services,” says Suhas Tuljapurkar, the founder and director of Legasis in Mumbai. “Law firms that can leverage legaltech to provide faster and more accurate services may be more attractive to clients.”
Understanding resistance
Keen to maintain a competitive edge, many law firms are looking for the right tech tools. Others are unnerved by cost, training requirements and the culture change needed to properly embrace and institutionalise new technology.
“The problem is that the people using the technology need to have a sea change in mindset,” says Sameer Jain, the managing partner at PSL Advocates & Solicitors in New Delhi. “Adoption of technology on a firm-wide level is difficult but of utmost importance.”
“The challenge is in bringing everyone up to the same level in applying the tech effectively,” says Rajesh Ramanathan, a partner at Factum Law in Chennai.
In Arya’s view, “overcoming organisational inertia and change management struggles” is paramount. “For legacy law firms and some attorneys, especially senior partners, adopting legaltech can be seen as undermining their status or role,” he says.
Some firms have been hesitant because of the effort required to incorporate new software into existing systems.
“For smaller law firms, the initial investment in legaltech tools and training can be significant and integration with existing systems and workflows can be complex,” says Manisha Singh, a founder and managing partner at LexOrbis.
Affordability is important. “Cutting edge legaltech today still remains expensive,” says Sudhir Ravindran, the CEO of Altacit Global in Chennai. He predicts a greater uptake once tech becomes cheaper and more accessible.
Customised software may work for firms with niche requirements, but comes with time and monetary costs. “Legal work can be highly specialised and finding off-the-shelf solutions that meet the unique needs of a firm’s practice areas might be challenging,” says Tuljapurkar.
Sakshi Shairwal, the founder of Sakshar Law Associates in New Delhi, shares this sentiment. “Not everyone can afford the best of the best,” she says. “The biggest challenge for legaltech is to cater to all kinds of law firms, from big multi-tier organisations to boutiques.”
Despite practical hurdles, law firms cannot afford to be slow on tech.
Investing in it is easy, says Kritika Krishnamurthy, the founding partner of AK & Partners in New Delhi. The hard work is embedding it into a firm’s existing setup and ensuring lawyers know how to use it effectively.
To address pain points, AK & Partners seeks feedback from its team each time technology is introduced. Krishnamurthy says that there are “constant complaints that all members of a team are not using the software”. So, the firm then proceeds to “investigate why adoption rates are low, rectify the why, or force adoption”, she says.
“This in itself is becoming a HR task, where the cost of optimising legal services has turned into an administrative cost. Keeping track of software usage is very important so that the investment does not go down the drain.”
Automation, efficiency and higher billing
Lawyers who have managed to grasp the right software are reaping rewards.
“Technology has been an integral part of our law firm,” says Gaurav Bhalla, a partner at Ahlawat & Associates in New Delhi. “Legaltech has played a crucial role by streamlining processes, improving efficiency, enhancing client services and helping lawyers stay competitive.”
KPS Kohli, a partner at Seraphic Advisers in New Delhi, is pleased by how easy it is to check billable and non-billable hours with legaltech that tracks invoices, expenses and time.
Negi, at Mettle Legal, uses MikeLegal for trademark and proprietorship searches. “The only remaining task is to analyse the reports generated, eliminating any kind of clerical work altogether,” he says. “Moreover, we take the assistance of databases such as Manupatra, PTC and several other legal blogs and websites. The combination of these tools allows our team to work on matters in an organised manner.”
Docketing and document management systems have helped LexOrbis to organise, store and retrieve data and documents. The system prevents critical information loss and saves valuable time that is better spent on legal work. “Legaltech tools also provide lawyers with access to vast databases of case law, statutes and legal commentary,” says Singh. “[They] conduct thorough research quickly, helping them build stronger cases and provide more accurate advice to clients.”
Rashi Suri, the managing partner of Upscale Legal in New Delhi, says legaltech is useful in risk mitigation. “Legaltech tools can assist in risk management, compliance, and ensuring that the firm’s practices align with regulatory requirements,” she says.
Bespoke solutions
Several law firms have made serious investments and designed tailored solutions.
PSL Advocates & Solicitors created PSL Assist, an in-house web and mobile application that works as a client management tool to track progress on matters. It also functions as a portal for knowledge management.
“Clients can use the app to get real-time updates … including copies of pleadings filed, orders passed by courts, time spent by lawyers and invoices,” says Jain.
Clients can also use it to schedule meetings with lawyers and access the firm’s knowledge resources. “Internally, seniors use this app to monitor the work done by their team members,” says Jain. “We use PSL Assist on a daily basis, and when faced with huge amounts of data, we use AI tools like Luminance for effective discovery.”
Royzz & Co’s indigenous tool, DDfact, monitors all crucial deadlines and automatically sends reminders to clients, says Mumbai-based senior associate partner Muthu Pandi. The software minimises unnecessary correspondence as “clients have their own logins to view their files”.
Ashwathh Legal uses Python scripts – its in-house proprietary software – to rapidly analyse and work on large volumes of documents and data sets, and to help with database management and retrieval.
Ashwathh’s client portal “offers a seamless experience for viewing files, collaborating on matters, sharing documents and checking status updates in real-time,” says Arya. “We are also exploring options such as smart contracts to encode legal agreements directly into software.”
Anand says legaltech at his firm, “especially that which has been created in-house, has tremendously helped increase lawyers’ billing”. Anand and Anand employs separate patent, trademark and litigation automation modules, which Anand says “eliminates human error, frees up hours for more productive work, and captures a lot of work that is otherwise missed while filling in time sheets”.
The arguments in favour
Law firms are increasingly relying on AI software to assist legal research, drafting and case analysis. AI platforms have been used to simplify legalese, customise legal documents, scan and analyse large volumes of legal data, automate contract drafting and provide predictive analytics.
“AI software plays a pivotal role in revolutionising legal research, drafting and case analysis,” says Anindita Banerjee, director of client relations and branding at Dhaval Vussonji & Associates in Mumbai. “It accelerates legal research by quickly analysing vast databases of case law and statutes, providing lawyers with relevant precedents and legal insights.”
Banerjee recognises AI’s drafting capabilities and its ability to “generate contracts, agreements and legal documents with remarkable speed and accuracy, reducing the potential for errors”.
She also appreciates its usefulness in case analysis and decision-making through the identification of patterns and trends within large volumes of data.
“Ultimately, AI enhances efficiency, reduces manual labour and empowers legal professionals to deliver more precise and timely services to their clients,” she says.
Suri refers to AI’s strengths in contract analysis, and its ability to highlight potential risks, inconsistencies and missing clauses. “It can also suggest standard clauses and boilerplate language,” she says. Its legal analytics for litigation is also impressive. “AI tools can analyse large data sets to uncover insights about judges, opposing counsel, or legal strategies used in similar cases, helping lawyers make data-driven decisions,” says Suri.
But not all lawyers are convinced of AI’s merits. Some believe further tinkering and advancement is needed to improve dependability.
“Currently the role of AI is rudimentary, but it is poised to grow exponentially,” says Khurana. “Legal research is the area where AI seems more successful, while drafting and case analysis will still need some developing before it becomes a reliable option to be used for real-time matters.”
According to Aditi Warrier, a principal associate at DGS Associates in New Delhi, AI is helpful with legal research, including suggestions for relevant case laws, but “the technology as of today lacks the thoroughness required to rely solely upon it”. Many lawyers agree that generative AI is best used by experienced senior lawyers and subject matter experts who know the answer to the questions that they are asking, and can spot AI’s potential mistakes. Junior lawyers could slip up; among them, AI may cause more confusion, delay and disruption instead of saving time.
Still, many lawyers argue that the objective of AI is not to replace lawyers but to complement their legal expertise.
“Anand and Anand has already benefited from the power of LLMs [large language models] in helping to integrate a large number of disciplines to support their creative arguments through analogical proof,” says Anand.
“The firm has also secured a decision from Delhi High Court that addressed the legitimacy of outputs by generative AI as proof or evidence in court. While specialist lawyers have depth, generative AI gives them breadth or range, and this feature of AI has a very strong role to play in the legal industry through the next decade.”
Ashwathh Legal is leveraging the latest AI innovations with machine learning and LLMs developed in-house, rather than using ChatGPT and other similar features. “Our data is sacrosanct and cannot be allowed to be used by outside LLMs,” says Arya. “We carefully incorporate AI alongside our seasoned lawyers’ judgment and counsel. This powerful combination delivers the best results for our clients.”
“AI cannot replace lawyers, but it can certainly reduce the mental stress of partners,” says Hitesh Soni, the founder and managing director at Hitesh Soni & Associates in Mumbai. “AI cannot be the edifice of a case, but it can shape it.”
Risks and improvements
There is general consensus that AI is a powerful tool to complement human skills and make more informed, strategic decisions. However, lawyers emphasise the importance of responsible and ethical use.
“AI has a significant role; however, the challenge is its ethical and judicious use,” says Shukla. “For example, using ChatGPT is easy but it is vital to ensure that we do not compromise client data, or get carried away by results. We must have checks and balances.”
Suri says transparency and accountability should also be considered to ensure that “AI-driven decisions can be explained and audited, especially in legal contexts”.
Data privacy and protecting client-sensitive information continues to be a major concern, particularly with increasing reliance on cloud-based solutions. Lawyers say tech providers should continually invest in robust data security against cyber threats and data breaches.
For some firms, interoperability remains an issue. This is mainly because it is tricky to find one platform that can serve all of a law firm’s needs. As a result, firms often use a mix of legaltech solutions and tools, and each of these has its own way of organising data.
This complicates information integration across platforms. “For instance, ensuring that case management software can easily communicate with e-discovery tools or document management systems can streamline workflows and improve data-sharing,” says Banerjee.
Tuljapurkar goes further and calls for “interdisciplinary integration” because the legal field often intersects with other industries such as finance, healthcare and technology. “Future legaltech should aim to seamlessly integrate with tools from these domains to provide holistic solutions,” he says.
Lawyers want their tech to be user-friendly. “The current technology is not friendly for all lawyers,” laments Arush Khanna, a partner at Numen Law Offices in New Delhi. “Only the newer generation is technologically efficient.”
“For document automation and AI drafting, the technology is still quite rigid,” says Arya, who wants more customisable, flexible systems that can understand context and adapt to different writing styles. He also sees scope for data analytics tools to be enhanced by an easier visualisation of insights. “Lawyers appreciate analytics presented in readily understandable interactive dashboards.”
Lawyers are keen to see advancements in legaltech for dispute resolution. Arya wants models that can weigh complex judgment calls, while Tuljapurkar sees AI’s potential in helping parties identify common ground and possible resolutions in disputes, potentially reducing protracted litigation.
There is also room to refine and improve the accuracy of predictive analytics, says Tuljapurkar. “Developing AI models that consider a wider range of factors and adapt as new case law emerges will be valuable.”
Beyond serving immediate requirements, legaltech also has the potential to improve the function and efficiency of India’s legal system. “Legaltech should focus on improving access to justice by making legal services more affordable and accessible to underserved populations,” says Suri.
Staying relevant
Private practitioners are acutely aware of the need to specialise and innovate, so their services do not become redundant. Legaltech can already handle tasks like contract drafting, document review, contract management, e-discovery and due diligence. Corporate counsel invest in these technologies to rein in spending. But many law firms are convinced that they will remain relevant and integral to their clients’ businesses because the tech can only do so much. “In our view, no matter how brilliant a technology is, it cannot replace the analytical skill of a human being, especially the art of articulating thoughts to present an argument,” says Daizy Chawla, the managing partner at S&A Law Offices.
Swarup Kumar, the managing partner at Kumar & Sardana in New Delhi, believes that AI is unlikely to quickly replace the highly skilled and value-added services of IP lawyers such as patent drafting, prosecution, opposition, appeal and infringement matters.
“The oral advocate’s work is mostly custom-made and tailored to each case, and it is hard to see how their skills and efforts in the courtroom could be standardised or computerised,” says Anand. “In fact, oral advocacy at its best is probably the ultimate example of a personalised legal service.”
Vartika Malhotra, the CEO of TMT Law Practice in New Delhi, says: “While legaltech is advancing at a fairly rapid pace, it is not capable of replacing human legal expertise, especially in … complex issues which require nuanced attention.” She says lawyers have the upper hand in applying laws, strategic or lateral thinking and interpretations, understanding legal loopholes, and negotiating, managing and guiding clients.
Malhotra says legaltech is reliant on human programming and requires constant updates. She argues that tech tools may not always have access to the most recent developments, so its information could be outdated. “For example, the last knowledge update for the free and publicly accessible version of ChatGPT took place in September 2021 and, unless a user subscribes to the paid and updated version, ChatGPT’s assistance with legal information is limited to that date, making it redundant for legal research and developments in the last two years,” says Malhotra. “There have also been many instances of mistakes and erroneous results/information being provided by free AI tools.”
Despite flaws, legaltech is here to stay. Those who have loosened the purse strings already are also thinking ahead about raising their value proposition.
Arya forecasts that tech skills at law firms will soon be mandatory. “New roles and skillsets for lawyers focused specifically on legal operations, process improvement, legal project management and extracting insights from data will continue to grow in importance,” he says.
“This decade will be defined by the designing of entire ecosystems centred on cutting-edge technology, which has equal inputs from lawyers, users and techies,” says Anand. “Those who do not wield the power of generative AI … would end up being square pegs in a round hole.”
