Jun 21st: Digitization, Automation, and Social Responsibility Take Center Stage

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In today's episode, we'll cover the digitization and automation trend in legal industry, increasing M and A activity led by private equity buyers, Chile's AI regulation Bill, and the importance of client experience and feedback in law firms.

Let's dive right in!

Let's review some of the exciting developments in legal tech recently!

UK accounting firm, Saffery Champness, is moving to the cloud with Elite's 3E Cloud platform to simplify their data infrastructure and automate mundane internal processes. This will likely increase efficiency and productivity at the company.

In addition, legal consultancy, LexSolutions, joined forces with the Maturity Institute and OMINDEX to launch the Law Firm Maturity Index. This is a cultural benchmark designed to help law firms measure their social responsibilities - something that is becoming increasingly important.

Not only that, but the transaction management platform, Dealcloser, has raised $2.5m in funding to develop its capabilities and expand beyond its legal focus. We'll discuss funding more in our key stories section in a bit.

But first, these trends all point towards the increasing importance of digitization and automation in the legal profession. More and more firms are recognizing the benefits of cloud computing and open API architecture to streamline operations and enhance security. There's also a trend towards measuring and taking responsibility for social impact - something that is likely to continue.

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Now let's move to our key stories!

Our first key story comes from Legal Dive, focusing on M and A deals and the current landscape for dealmakers in the US and Canada. After several quarters of contraction, there's optimism about an increase in M and A activity this year. In fact, a report from Norton Rose Fulbright indicates that the appetite for M and A deals is strong.

According to the report, dealmakers are feeling positive about the future, largely due to pent-up dry powder. In fact, about 60% of survey respondents expect global private equity buyers to be the most active prospective acquirers, with US private equity firms leading the way. Additionally, nearly two-thirds of respondents identified the technology sector as among the top three industries where they expect to see growth in inbound cross-border M and A this year.

The life sciences and healthcare sectors were also identified as promising areas for inbound deals this year. However, the report also unveiled some of the challenges that dealmakers may face. Stricter regulations were cited as a threat to M and A activity by 60% of respondents in both the US and Canada. Half of the respondents also said that antitrust regulations could suppress deals.

It will be interesting to see how these factors play out, but it definitely seems like there's reason for optimism for dealmakers despite some potential obstacles.

Speaking of deal making...
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Dealcloser, the transaction management platform just completed a $2.5 million funding round with the hopes of expanding their sales and marketing teams and exploring new markets in Europe. This brings their total funding to $3.8 million.

Last year alone, the company experienced some significant growth with a whopping 310% increase in deals created on their platform. Dealcloser has highlighted their mission to find solutions that can enhance client profitability in addition to reducing attorney churn. With these goals in mind, they're looking to expand into new verticals.

Investors in this round were led by Dealcloser's existing investor Bryce Catalyst and Fernwood Holdings.

Moving on, have you heard the latest developments in AI regulation?

It appears that Chile is taking some significant first steps towards regulating the use of artificial intelligence in the country. The Chilean parliament is currently discussing a bill, which draws heavily on Europe's AI Act and a Chilean policy document on AI, as well as a proposed amendment to the country's Constitution regarding scientific and technological development.

This bill is aimed at establishing new definitions and criteria for determining the acceptability of AI systems, creating a National Commission for AI, and requiring authorization for AI system development, distribution, commercialization, and use. It also proposes financial and custodial penalties for non-compliance.

These measures are all part of an effort to ensure that AI is used as a positive force in society. However, the legislative process is still uncertain at this stage. It's crucial that the opinions of key stakeholders are heard to ensure that this bill gains credibility and succeeds in protecting fundamental rights.

It's encouraging to see governments taking steps towards regulating AI, as it's essential that we ensure AI is used responsibly and for the benefit of society.

Now, let's move to our last key story.

We'll wrap up with something light...

How to future-proof your law firm?

According to a recent report from Above the Law, law firms need to embrace a culture of learning to attract and retain clients. Instead of being in "knowing mode," firms should focus on learning mode. Clients want relatable lawyers who can sit on the same side of the table and discuss their concerns without using heavy legal jargon. The report suggests that law firms invest in leadership training, create a client journey roadmap to manage clients' experience, and promote team building and feedback. Building a culture of humility, self-awareness, and the ability to connect with clients is crucial for creating relatable lawyers who break from traditional law firm models. So, investing in the right training and culture can help you future-proof your law firm.

And that's a wrap.

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