Navigating the New World of AI – New Best Friend or Thorn in Your Side?
Got the AI bug? Eager to work out how to exploit the latest tech for a sharper competitive edge? We asked Nerika Maharaj (Data, privacy and compliance specialist) and Chris Hathaway (Co-founder of Cloud Essentials and cloud technology expert) for their thoughts on the power of AI and how transformative it will be to the legal industry. Continue the conversation at the Cloud Essentials’ stand at the Legal Innovation & Tech Fest on 6-7 November. Nerika: We’re hearing a lot about AI and the potential opportunities are exciting for knowledge-based industries, like legal. The ability to have modern tech do routine aspects of due diligence, or write first drafts of contracts and correspondence could free up time to do higher value work. But, it’s easy to see that there are plenty of risks associated with AI, and generative AI in particular. All the current discussion points about ChatGPT and what data it is trained on, become very pertinent in the context of client data within a law firm. It can be hard to know whether to be excited or scared. Chris: The hype certainly swings from ‘AI will change the world for the better’ to ‘the robots are going to take over’. I’ve spent my career in technology and at the forefront of the cloud revolution. Cloud platforms have opened up new business opportunities and dramatically changed how we work, but we can’t forget that the move to the cloud has also increased opportunities for cyber attacks and cyber crime, so there are always risks to mitigate when new technology is adopted. I started my career in risk management, so I’m good at taking a balanced view. Personally, I’m excited by the potential of AI to transform our working lives. Nerika: So where do you start with working out what AI could do for your law firm or legal team? There are going to be lots of companies exploiting the technology that is being developed, but how do you know who to trust? I read a quote from Stuart Russell, Professor of Computer Science at University of California, Berkeley that “there are more regulations on sandwich shops than there are on AI companies”! Chrs: It’s true – there are likely to be some new entrants into the market who will build amazing solutions that exploit AI. They will need to be tested to build trust, and that will take time. However, it makes sense to look at using what you’ve got and getting the most out of it. With Microsoft providing the backbone for many law firm and corporate IT platforms, I’ve focused my time on how Microsoft are building AI-powered tools into their applications. I’m often talking to clients about how Microsoft licences can feel like a big investment, but it’s always worth making sure you’re getting the most of what Microsoft have to offer. Microsoft’s tools are industry-leading in many areas including email security, compliance and document management, so there are good reasons to consolidate into the platform from a cost and efficiency perspective. And when it comes to AI, there are lots of projects that Microsoft are working on, from AI-powered Bing, to a tool that helps developers write better code, faster. However, it’s the AI assistant that works within Office, Microsoft 365 Copilot, that looks most interesting to knowledge workers. There’s real potential to boost productivity and creativity if used correctly and it offers the opportunity for organisations to harness and use their collective ‘knowledge’ that lives in their content for the benefit of the business. Nerika: You’re definitely bringing me round to an exciting vision of the future, however the risk-averse compliance side of my personality can’t help but worry about the risks involved with an organisation’s content being used in this way. I imagine many in the legal sector will have the same concerns. Chris: It’s definitely not something that a law firm or corporate would want to dive into, without a clear idea of the business case and some prep work to make sure their house is in order. My main message to clients who are interested in these early days is to focus on your content. Content will be the cornerstone of your AI strategy, and the success or failure of an AI proof of concept will hang on your content. The old phrase ‘garbage in, garbage out’ is all too true in this context – if you train your AI models on out of date, incorrect or irrelevant data, you won’t see the results you’re hoping for. Data governance processes and activities are part of IT housekeeping that will grow in importance as AI tools start to surface organisational knowledge on demand. Nerika will be talking about Microsoft 365 Copilot at the Legal Innovation & Tech Fest on 6-7 November as she explores how it works, the opportunities it Don’t miss our factsheet, with curated links to helpful resources covering all aspects of AI and Microsoft 365 Copilot. About the speaker: Nerika Maharaj is a seasoned compliance specialist with an unwavering passion for privacy compliance, securing data and guiding businesses to success. She’s able to bridge the gap between regulation and technology. Nerika worked for two decades in legal fields, data privacy and cyber privacy consultancy before joining Cloud Essentials, where she is their compliance lead, focused on helping clients to maximise the potential of their content in the Microsoft 365 ecosystem, without compromising data compliance and enabling robust knowledge administration. Pragmatic, a proactive advocate championing the cause of data security and governance, she’s also able to speak the language of I.T. to help encourage cross-business collaboration.
Sharpen Up Your Competitive Edge with an Innovative Approach to eDiscovery Consumption
eDiscovery is often described as the process of identifying, collecting, reviewing and producing electronic information relating to a legal case or investigation. While technically accurate, this description can be misleading in that it implies the use cases for eDiscovery solutions are limited to litigation and investigation, alone. Is it time to re-think eDiscovery as a value-add service rather than a necessary evil? In reality, the systematic analysis of a body of client-supplied electronic information forms a core part of a number of legal services, from contract review and due diligence to data subject access request responses. Many of these services require very similar – if not identical – capabilities to those required for litigation/investigation-related eDiscovery: adding observations, tagging relevant facts, inserting annotations or fields, or even redacting elements before producing a consolidated report of findings, advice and/or opinions. Despite being such a neat fit for today’s eDiscovery tools and processes, it remains relatively rare to see eDiscovery solutions used outside of litigation and investigation. Is that driven by the typical ‘pay as you go’ pricing structure and usage model of eDiscovery platforms and services, which makes smaller engagements unaffordable? What if eDiscovery could be bought as a subscription? For a fixed (and therefore highly predictable) per-Gigabyte fee, the subscription bundle could include eDiscovery services together with reusable capacity on the eDiscovery platform. By aggregating volume requirements across all departments and all use cases, legal teams could benefit from extraordinary economies of scale. And by taking advantage of natural project churn to make the most of annual reusable capacity, the potential is there to have a subscription that costs notably less than the sum of its individually priced project “parts”. Parts which no longer need to be large to be worthwhile. Maximise your investment in eDiscovery capability No matter how you slice and dice it, eDiscovery capabilities are a big investment. It makes sense to put that investment to work in as many ways as possible. Being able to use your eDiscovery platform in between (or alongside) litigation and investigation to securely ingest, review and analyse other content unlocks a whole new world of potential value. For law firms, it could enable you to keep document management systems free of transient client data, reducing the volume – and therefore cost – of long-term data retention at the close of each matter. Within corporates, downtime between projects could be used to put your eDiscovery capabilities to work proactively supervising data for compliance and fraud risk mitigation. Prevention is always better (and usually cheaper) than cure so why not maximise the value from an eDiscovery subscription? Don’t get left behind on ‘pay-as-you-go’ At Salient, our clients are already taking advantage of this innovative new approach to pricing. Our subscription clients receive the same, world-class, end-to-end eDiscovery service, backed by the same cutting-edge AI/ML technology and expert skill, but with the following added benefits: Fixed (and fully inclusive) cost for the ultimate predictability – no hidden expenses or additional processing or user fees Reduced price points available for larger volumes and longer subscription terms – enjoy greater economies of scale by consolidating organisation-wide needs Reusable volume over the subscription term Volume “in use” based on peak activated data – free up capacity for new projects as you cull and filter existing ones Come and talk to us at our stand at the Legal Innovation & Tech Fest on 6 November. We offer eDiscovery powered by Reveal, eDiscovery in Microsoft 365 and can share some of our innovative applications of this powerful and versatile technology. Alternatively, visit our website at www.salientdiscovery.com to find out more about our skills and services.
Contract Drafting: Unlocking the Power of Legal Design to Reduce Misunderstanding and Foster Business Success
In the new legal landscape powered by technologies and other digital tools, one area where the principles of legal design innovation are making a profound and positive impact is contract drafting. Legal design is a relatively new concept that refers to the integration of design principles into the realm of law. Its ultimate goal is to enhance the human-centered nature of legal systems and services, ensuring they are both user-friendly and satisfying. Designing contracts with the user in mind is a pioneering approach that places the needs and expectations of all parties involved at the forefront of the contract creation process. Unlike traditional, dense legal language and clauses, this methodology focuses on crafting contracts that are not only legally sound but also comprehensible for business users. Numerous organizations across the world have effectively implemented this new contractual approach and have enjoyed substantial advantages. These include heightened client satisfaction, more seamless negotiation processes, and, consequently, improved business outcomes. In this article, we will explore how legal design can radically enhance the way legal professionals create contracts, leading to more effective client engagement, streamlined workflows, and the utilization of digital tools for a seamless experience. 1- User-Centric Contracts: A Win-Win for Lawyers and Business Professionals Legal design innovation champions a user-centric approach, emphasizing the need to go beyond standard legal services and offer an experience that leaves clients genuinely satisfied. When it comes to contract drafting, this shift in perspective means producing contracts that are not just legally sound but also easily understandable to clients who may not have a legal background. Clarity and simplicity are at the core of legal design principles for contracts. This involves the use of plain language and visual aids delivered in a user-friendly format. Contracts designed with these principles in mind are not only more accessible to clients but also foster better communication and trust. By doing so, legal professionals can improve the overall client experience, speed up negotiation times and reduce confusion that can lead to misunderstandings, conflicts and eventually costly litigation. 2- Practical Strategies to Transition from Contract Drafting to Contract Design In the realm of design, we often assert that “Form always follows function” a principle hailing from the late 19th century by architect Louis H. Sullivan. This tenet emphasizes that functionality should consistently take precedence over aesthetics. When we apply this principle to the domain of contract design, it underscores the idea that the contract’s design should primarily serve its functional purpose – namely, to establish a robust foundation for a thriving business relationship while affording essential legal protection. Consequently, the way a contract is presented can be just as significant as its content. In the context of contracts, design transcends mere aesthetics; it’s a powerful tool for rendering complex legal information comprehensible and accessible. The inclusion of design elements such as icons, colors and other visual aid not only helps in signaling important information but also accentuates key information. The use of visuals and graphics can also turn complex legal concepts into more understandable and accessible content for the business to be able to comply with the requirements of the contracts. In essence, good design stands as a pivotal factor in enhancing the clarity and usability of contracts by lawyers and non-lawyers alike, ultimately benefiting both clients and legal professionals. 3- Digital Transformation of Contract Drafting and Management with a Design Approach Being digitally ready is now an essential aspect of the legal profession, especially in contract drafting. Legal design aligns with this requirement and fosters a seamlessly integration of technology in legal work. The true power of legal design as a methodology supporting the digital transformation shines when applied to contract drafting and contract management. Contract design extends far beyond the mere aesthetics or a visually appealing layout. At its core, it hinges upon a profound comprehension of the objectives of the parties engaged in the agreement and how the relationship will operate for the business outcomes to be reached. When working on the digital transformation of contracts, these elements need to be taken into account. For example, creating a CLM (Contract Lifecycle Management System), the user-centered approach is vital when choosing a software or elaborating a new system and integrating it into workflows. Understanding user needs and objectives ensures that the selected CLM system aligns with practical requirements, boosting user adoption and satisfaction. In this sense, the contract design approach not only fine-tunes the understanding of the contract content and the parties’ objectives but also helps operate the contractual relationship with the integration of technology. This is how the methodology is being used by large organizations, especially legal departments, often in combnination with legal operations, to foster success at every step along the way. 4- The Way Forward with Legal Design By prioritizing user-centered design, this innovative approach aims to transform contracts from complex one-sided documents into instruments that foster trust, clarity, and mutual understanding among all stakeholders. It not only streamlines communication but also facilitates adherence to legal obligations, reducing the risk of disputes and enhancing overall satisfaction. In essence, it reimagines contracts as a dynamic tool for strengthening relationships and minimizing uncertainty, thus offering a promising path for legal agreements. Legal design innovation offers a concrete path to transition from contract drafting to designing documents that support the business relationship. By adopting a user-centric approach and employing practical design methodology, legal professionals can truly unlock more value for clients in the way they create contracts. Contracts cease to be mere legal documents; they become client-friendly, understandable, and efficient tools that enhance both the client experience and the overall legal practice. For those eager to dive deeper into these principles, we invite you to join us at the the Legal Tech Fest South Africa, scheduled for November 6-7. Here, you’ll have the opportunity to further hone your legal innovation superpowers, network with like-minded professionals, and gain practical insights to navigate the ever-changing legal landscape. Additionally, a Special Workshop will be held in Cape Town on November 9, providing a focused platform to unlock your creativity and explore innovative legal solutions. Don’t miss the chance to become a catalyst for change in the legal world. Embrace your creative thinking and legal innovation, and embark on your journey to becoming a legal trailblazer! About the Author Tessa ManuelloLegal Design and High Performance CoachFounder and CEO Legal Creatives (Brazil) A true trailblazer in her field, as the founder and CEO of Legal Creatives. She’s not only a Legal Design pioneer but also a practitioner, a trainer and a coach. With 3 LLMs under her belt, including one from Sorbonne (France), and a background as a case manager at the Arbitration Court of the International Chamber of Commerce, Tessa’s approach to law is fresh, modern, and digital-savvy. And here’s a fun fact: When she’s not busy surfing the design wave of the legal world, Tessa loves catching waves as an avid surfer!
Harnessing Creativity and Innovation for Success in Today’s Legal World
In an industry rooted in tradition and precedent, the concepts of creativity and innovation may initially appear counterintuitive for legal professionals. The legal field has long been associated with unwavering adherence to traditions and long-established norms. However, in today’s dynamic legal landscape, where change is the only constant, creativity and innovation have evolved from being unconventional to essential. Clients are no longer satisfied with cookie-cutter legal services. They expect innovative approaches that not only solve their legal issues but also deliver efficiency and cost-effectiveness. Therefore, legal professionals must adapt and embrace creative problem-solving and innovative thinking to meet these evolving client demands and remain competitive in a rapidly changing legal market. While these concepts may seem at odds with the traditional image of the legal profession, they have become vital tools for success. Creative thinking, innovation, and collaborative teamwork are now at the forefront of the legal profession, serving as catalysts for progress and ensuring that legal professionals can navigate the complex challenges of today’s legal landscape effectively. Embracing these principles isn’t just a choice; it’s a necessity for legal trailblazers in the modern age. 1. Why Catalyzing Legal Innovation in Your Organization Matters Innovation is the lifeblood of progress, and it’s no different in the legal field. To catalyze legal innovation within your organization, you must first embrace a mindset that welcomes change and encourages creative problem-solving. One of the key takeaways here is the importance of ideation. Brainstorming is not limited to creative thinking; it’s a potent tool for generating innovative legal solutions. Encourage your team to brainstorm regularly complex problems – for the office or clients work – and watch as novel approaches emerge. Developing these innovative ideas into tangible solutions is the next step. This requires a structured approach to innovation, akin to a legal process. Legal project management techniques can be adapted to innovation projects, helping to plan, execute, and measure the success of your innovative legal solutions. Implementing these innovations is where the rubber meets the road. This step is about turning your innovative ideas into practical, real-world solutions that can benefit your clients, your organization, and the legal industry as a whole. 2. How to Amplify Your Creativity as a Legal Professional Legal professionals often navigate complex terrain, which can sometimes stifle creativity. However, the ability to think creatively is a valuable asset that can greatly enhance your legal practice. One key method to amplify your legal creativity is through brainstorming. It’s not just about generating ideas; it’s about fostering an environment where even the wildest ideas are welcome. This approach can lead to breakthroughs in legal problem-solving that you might not have considered in a more rigid atmosphere. The concept of Play may seem like an unlikely fit for the legal world, but it can be incredibly effective to foster creative ideas and innovation. Using improv games can turn out to be really effective at unlocking more creativity. In a field where legal professionals are required to come up with the right answer, the improvisational aspect of these games helps generate new and fresh ideas. Visual thinking exercises are another invaluable tool. Often, the legal profession is text-heavy and structured, but introducing visual elements into your work can unlock new perspectives. Flowcharts, diagrams, and infographics can help simplify complex legal concepts and make them more accessible to clients and colleagues. 3. Fostering Teamwork and Collaboration in a New Way Legal professionals often work in solitary roles, but the power of collaboration should not be underestimated. Effective teamwork can spark new ideas, generate creative solutions, and promote a culture of innovation within your legal team or organization. Collaborating with like-minded legal professionals provides access to a wealth of collective knowledge and diverse perspectives. By pooling your resources, you can tackle complex legal issues and work with a more comprehensive approach. In this collaborative environment, you’re not just learning from others; you’re gaining fresh perspectives that can unlock new value for clients. This enriched learning experience can lead to innovative insights and creative problem-solving techniques. As we’ve explored the significance of creativity and innovation in the legal realm, it’s evident that these concepts have evolved from being unconventional to indispensable. Amplifying creativity, catalyzing innovation, and fostering teamwork are key ingredients for success in the dynamic legal landscape of today. For those eager to dive deeper into these principles, we invite you to join us at the the Legal Tech Fest South Africa, scheduled for November 6-7. Here, you’ll have the opportunity to further hone your legal innovation superpowers, network with like-minded professionals, and gain practical insights to navigate the ever-changing legal landscape. Additionally, a Special Workshop will be held in Cape Town on November 9, providing a focused platform to unlock your creativity and explore innovative legal solutions. Don’t miss the chance to become a catalyst for change in the legal world. Embrace your creative thinking and legal innovation, and embark on your journey to becoming a legal trailblazer! About the Author Tessa ManuelloLegal Design and High Performance CoachFounder and CEO Legal Creatives (Brazil) A true trailblazer in her field, as the founder and CEO of Legal Creatives. She’s not only a Legal Design pioneer but also a practitioner, a trainer and a coach. With 3 LLMs under her belt, including one from Sorbonne (France), and a background as a case manager at the Arbitration Court of the International Chamber of Commerce, Tessa’s approach to law is fresh, modern, and digital-savvy. And here’s a fun fact: When she’s not busy surfing the design wave of the legal world, Tessa loves catching waves as an avid surfer!
Lawyers Not Robots…
Leading up to the Legal Innovation and Tech Fest in Joburg on 7/8 November, I am, perhaps counter-intuitively, really hoping the discussion won’t be pre-occupied with whether robots will be replacing lawyers any time soon. The hype and lack of reality in the discussion on AI in the legal profession and legal services industry is starting to feel like an NDA proofread – a bit tedious. Exploring how we can harness tech (including AI) to enable real human lawyers to solve the actual problems they face daily – now that is a far more exciting, and real, prospect. I say this with what I hope is an unfair advantage, having spent a slightly scary proportion of my waking hours over the last decade trying to build and deliver alternative legal services solutions. A meaningful part of this has included an ongoing investigation into the legal tech out there and the development of our own tech, LightHub. In the last couple of years, I have had the wonderful fortune of being able to work closely with a lifelong friend in developing LightHub and trying to launch it in the US. Here are a couple of the things learned along the way (and a bit of a teaser for our presentation at the conference): 1 Avoid becoming distracted by shiny things Starting with a shiny thing tends to cost a lot of money and almost never solves the real problems you need to solve. I’m getting older and more cynical about discussions that start with how legal tech, and in particular AI, will be so incredibly disruptive and revolutionary. And I am becoming more entrenched in my view that the starting point, and the central focus throughout, should be the human at the centre of the problem being solved. Interestingly my lifelong techie friend has felt this way for years and feels even more strongly about this now that ‘AI’ has come along. We need to understand in real detail the way in which the lawyer operates, acknowledge the constraints on the lawyer’s ability to deliver what is an incredibly challenging role (see more below), and identify where there are clear opportunities to arm the real life person delivering legal services with technology – and I am convinced that the results will be extraordinary. The legal tech should at least: make the lawyer’s life easier by: reducing time spent on repetitive tasks. allowing time to be spent on more value add and strategic tasks; and avoiding the mental distress that is too often associated with the relentless hamster wheel so many members of the profession find hard to escape; and enhance the ability to add value by augmenting the lawyer with technology (I like the term “Augmented Intelligence”). 2 Reframe the discussion to liberate rather than threaten Reframe the discussion so that it is centred around the mutual objectives of the client and the lawyer (and here I mean client mostly in the sense of the in house business client). Rather than a conversation that goes along the lines of: “you have spent way too much time on a miserable hamster wheel doing work that can be standardised and automated and you are therefore redundant and will be replaced by tech”. Champion the value of the legal advisor’s role in the business. It is an incredibly important, and too often overlooked role. Partly because it involves having to wear two hats: (a) enabler of the business’s ability to move forward and thrive; and (b) custodian of risk. These two elements of the role will sometimes clash, and it is up to the lawyer to know when to enable accelerated business activity and when to slow the business down to assess and evaluate and ensure a responsible approach to risk. No robot is navigating this tricky dynamic any time soon. However, there is no doubt that legal tech can be helpful – its a challenging role that needs all the support available to augment the person responsible for it. Creating tech in a vacuum without involving the people at the heart of all of this, is a mistake. There is no doubt that the technology is out there (cars can drive themselves) but the nuanced judgement and depth of experience necessary to perform the critical role of lawyer and legal counsel to a business, remains a human endeavour. I’m looking forward to discussing in more detail at Legal Innovation and Tech Fest how the legal tech community can help to ensure the human can thrive rather than be replaced, and how business success will follow. About the Author Justin Cornish – CEO, Lighthouse Law Lee is a senior commercial attorney and law lecturer. He focuses on technology related legal issues, commercial agreements, data protection, and regulatory compliance. Lee primarily advises clients on a wide range of commercial and corporate matters as well as data protection compliance, information and cyber security, crypto-currency regulation, software agreements, and intellectual property related issues. Lee is passionate about technology’s intersection with the law, and the future of digital assets in the Web3 environment.
Data Regulation: How to Implement Technological Solutions
Data is an exceptionally valuable resource – some even refer to data as the modern version of oil. Protecting this asset should be a central business concern, it should not – as is often the case – be considered an information technology or legal issue. The Protection of Personal Information Act 4 of 2013 (‘POPIA’) and the Promotion of Access to Information Act 2 of 2000 (PAIA) have meant that many South African businesses have considered technological solutions in their quest to ensure compliance with data processing and access laws, and to manage data in general. What key considerations should a business take when implementing technological solutions for data regulation? The list below is flexible, and by no means a closed list, but some key points to consider: What is the business trying to achieve? This sounds like an obvious question, but to avoid a “tech for tech’s sake” approach, give careful thought to the exact purpose of the solution. Is it to facilitate POPIA compliance? PAIA compliance? Does the GDPR apply to the processing activities of the business? How will the solution be implemented in the specific business? Will it replace or compliment an existing compliance framework? How will the solution aid a business imperative or a legal obligation? Consult with relevant stakeholders in the business with a view to developing a comprehensive plan. Each business will differ, but from board to tech to legal – consider the “what” and the “how” set out above and ensure everyone is pulling in the same direction. Ensure that the solution proposed is going to a) solve the problem, and b) be capable of delivery from a technological perspective (e.g.: is mobile required? Do you have iOS and Android functionality? How will it fit into the existing IT environment?). Avoid an approach where business critical decisions are taken in silos. To be sure, you can’t please everyone, and not everyone will agree – but consult widely and gather all the relevant information. Develop an implementation plan. Use the information collected from the first three steps to develop a comprehensive plan that should address the “what” and the “how”, and detail how the proposed solution addresses this in the context of the business concerned. In addition, consider the risks, the costs, and the resources required. Set out how the solution will assist the business or increase turnover or reduce costs etc. Critically evaluate the software. What will it assist in achieving? Are the claims made by the platform objectively verifiable? How is the user experience? What are the license terms? Critically, as part of your evaluation, with the greatest of respect, be sure that you are not taking legal advice from someone not qualified to give you that advice. For example, if the “what” and the “how” relate to POPIA compliance, consider, independently, the obligations imposed by POPIA and its Regulations, or seek professional advice on those issues. POPIA and its regulations provide that a responsible party (the term applicable to a person who processes personal information) must, amongst other things, perform a risk assessment and develop, implement, monitor, and maintain a compliance framework. In addition, responsible parties should conduct training and develop measures and systems to deal with data subject requests. Above all, responsible parties must ensure that they are complying with the 8 conditions for lawful processing set out in the Act. Consider the following: does the application achieve compliance in one or more of these aspects? What manual intervention will be required? Implementation. What is required to get the solution off the ground? What user training is required? Post-implementation. What support is needed? How often will the tech be reviewed? Tech is never static – the law changes rapidly too. Create an internal champion (if not already in place) and drive regular reviews of how the project is actually working, and what changes in future may be required. Can one use a software application to solve all of your compliance problems? Probably not. Depending on the problem and use-case, the right application can certainly go a long way to assisting with compliance, but using POPIA as an example, usually, a risk assessment and training will need additional human input and classifying and inserting data remains a thorny issue. Although I obviously cannot say I have reviewed every software package available, it is likely that each application will have its own pros and cons and will likely need to be supplemented in some way. Accordingly, it is key to have a firm grasp on what legal requirements you are seeking to satisfy by using tech, and then evaluate how it is being achieved. Tech has come a long way over the past two decades. Those who started practice in and around the turn of the century will have experienced tech as a fax machine and a clunky practice management system that was slow and counter-intuitive; this has changed but look at things carefully before deciding you are “fully compliant”. Also: remember, as at end October 2022, the Information Regulator has not endorsed any specific application, and one will not be able to defend a claim from the Regulator or a data subject with “the software told me it was compliant with POPIA”. Finally, I look forward to unpacking this topic at the Tech Fest on 8 November 2022 in Sandton, where I will look at this in light of the steps required to achieve data protection compliance, and to briefly review issues such as the role of the Information Regulator, cross-border data flows, and South Africa’s regulatory regime in comparison to the EU and the UK. About the Author Dr Lee Swales – Attorney and Law Lecturer, Livingston Leandy Incorporated Lee is a senior commercial attorney and law lecturer. He focuses on technology related legal issues, commercial agreements, data protection, and regulatory compliance. Lee primarily advises clients on a wide range of commercial and corporate matters as well as data protection compliance, information and cyber security, crypto-currency regulation, software agreements, and intellectual property related issues. Lee is passionate about technology’s intersection with the law, and the future of digital assets in the Web3 environment.
Digitizing Inhouse Counsel, Myth or Reality?
One of the greatest barriers to legal technology adoption (and ultimately digitisation) is the culture embedded within the legal industry and unfortunately inhouse legal teams though in the corporate world are not immune. Sometimes it is not their doing, other times this is because legal is not prioritized from an organizational perspective as one that could be able to leverage from technological tools. In the context of the legal industry, digitisation simply means finding ways to digitally complete tasks, processes which were paper based. But what does that look like in a legal department? Well as a General Counsel or Head of a Legal Department, here are a couple of things you should consider digitizing: Your legal intake process – how are you receiving legal requests from the business? Is it centralized? Is it easily trackable and is the information provided to you in a such a way that you will be empowered enough to immediately action that legal request? How you track matters – Are you able to immediately track where you matters are? Who they are with within your legal department, how far they are in finalizing them? Do you have immediate clear oversight over all your department’s matters? How you report your matters – When its time to provide those board or executive reports, do you spend unnecessarily lengthy periods having to collect, analyses and then present your reporting? I could go on about what else you need to start digitizing; I think what most miss about not digitizing, is how they fail to benefit on being able to collect valuable data which can be turned into actionable insights. Insights that you as a legal departmental head or GC could be using to demonstrate the value of your department. Unfortunately, you cannot change or improve what you do not know and not digitizing increases the risk of you being unable to confidently advocate for yourself and the legal department in a language that the rest of the business understands: numbers and data. Before you even commence your digitisation journey, you have to consider your organization’s maturity. Here are some questions to ask yourself when assessing your organization’s maturity: Are existing (and new) technologies integrated into your organisation, and are they helping you achieve desired business results? Do these technologies tie in with key performance indicators? Do you have a process for evaluating outcomes? How is your organisation prepared to keep up with changes in the market, and disruptions due to digital trends? Do you have a technology roadmap and are you aware of the impact of digital maturity initiatives on the roadmap? Do you know what tech features would help you achieve business outcomes? Do you have the resources (including budget, resources and support from leadership)? Do you make informed decisions based on data and analytics? And lastly, as a legal tech eternal optimist, I will probably always be swayed towards any legal department or law firm using a legal tech solution. The most important tip I can provide is the following: ‘Don’t follow the tech hype, rather assess your organisation first, by deeply thinking about the above questions and assessing your current legal operating model before you embark on a legal tech roadmap or implementing any legal tech solution.’ About the Author Leah Molatseli – Head of Business Development, Legal Interact Leah is a lawyer, published legal tech author, speaker and Legal Tech and Innovation Specialist and Head of Business Development at Legal Interact. She focuses on the intersection between law, innovation and technology, using her expertise to educate and empower the legal market. She is year’s ILTA Most Influential Women in Legal Tech Honouree and the American Bar Association’s Women of Legal Tech. A mother of boys only, she is a huge fan of chocolate Sundaes and painting.
6 Points To Consider When Evaluating Legal Tech
Everyone’s talking about legal tech. The usual narrative is about how lawyers should use it to remain competitive, streamline their processes, and save time and money. But the reality is that several legal tech options exist, each battling for your limited attention. This post is for lawyers grappling with deciding which legal tech is most suitable for their business. By the end, you’ll be able to evaluate which solution is right for you. 1. Start with “why” Starting with “why” may seem basic. But I’ve discovered that most lawyers don’t remember why they initially sought legal tech. Crucially, deciding your “why” gives you purpose and direction. It’s also a beacon to return to if you stray from your original goal. For example, a “why” statement may read as follows: I’m searching for software to help us comply with the POPI Act. 2. Develop a business case After establishing your “why”, you should develop a business case. A business case is a document that justifies the project by capturing various essential considerations. For example, it sets out: The scope of the legal tech solution. For instance, “I want legal tech to help me manage the consent requirements under the POPI Act”. The budget. Decide your budget for the project over the short, medium and long terms. Leave room for surprise expenses. The return on investment. Ideally, you can calculate your return using this handy tool. The total cost of ownership. Here you’d estimate the expenses associated with buying, implementing, using, and retiring a solution. Human resource skills. How many people from your team can support this project? Have you assessed their capacity against the time demands of implementing the solution? The required infrastructure. Does the legal tech require strong and unfailing broadband connectivity? Will loadshedding impact your ability to use the solution? Can employees use it while working from home? The intended benefit to the department. How will the solution benefit the department? For example, “The software reduces the risk of us getting fined by the Regulator for mistakenly capturing the consent of data subjects under the POPI Act”. Risk assessment. Assess the risks associated with projects and implement measures to reduce risks. 3. On-premises or in the cloud You need to decide whether the legal tech will be hosted on-premises (on your hardware) or in the cloud (on a distributed infrastructure) managed by the service provider. On-premises solutions are more expensive and more challenging to manage if you have no infrastructure. However, you have more control over the data and security. Alternatively, cloud-based solutions allow for greater scalability. If you’re worried about security, search for a solution with enterprise-grade security features and robust data protection measures. 4. Implementation Once you have access to the legal tech, who will implement it in your organisation? Are there extra costs for implementation? Will the service provider train your staff to scale implementation? 5. User experience How intuitive is the legal tech? Remember that over 90% of lawyers are not tech-savvy. So, can the user simply open it and work on it readily, or does it require significant technical training? What is the cost of training? 6. Scalability How agile is the legal tech for scaling across multiple departments? Is the solution offered in multiple languages so you can scale across the continent and globe? Last tip You don’t have to do this alone. There are independent organisations out there that can help you evaluate legal tech and ensure it meets your needs. About the Author Nathan-Ross Adams – Data and Tech Lawyer, Michalsons Nathan-Ross helps African businesses and governments design, develop and deploy trustworthy AI. He combines legal, commercial, and technical insights to partner with his clients to move toward holistic and sustainable solutions. He believes the best way to formulate these solutions is through collaboration, clear communication, and simple legal documents in immersive legal design.
Why Your Old-Fashioned Contract Process Is Destroying Your Business
Recently, a friend who is a General Counsel reached out for a demo of my company’s product. He asked me to sign an NDA before we discussed details, and I experienced what many of us go through on a daily basis: I opened the email’s attachment, only to discover it was the wrong contract. After a few messages back and forth, I finally got the correct NDA, but I still had to download it to my computer, print it, sign it, and send it back—Only for it to sit in someone’s email inbox. Forever. Businesses today have learned to live with the “necessary evils” of a terrible contracting process because they don’t realize a better solution exists. In fact, many departments haven’t even identified their contracting process as a problem because it’s how things have always been done. Your contracting process may not feel broken to you, but it’s possible the old fashioned contract approach is destroying your business Here’s why: 1. It’s not fast enough. Technological advances are increasing the speed of business every day. Your current manual solution isn’t sustainable or scalable, and throwing more headcount and budget at the problem isn’t going to help, either. The industry has lost sight of the original purpose of contracts—to enable businesses. But since other processes are only moving faster and a business can only move as fast as its slowest link, you’re holding back the rest of the organization, rather than enabling it. Contracting technology is changing so fast that if you haven’t taken a look at the landscape in the last year, you’re likely missing out. And even if you were forward-thinking enough to put a CLM over five years ago, it’s likely outdated and hasn’t kept up with modern technology. You owe it to yourself and your company to stay on top of the latest developments that can benefit your bottom line. 2. You’re damaging business relationships. It’s no secret that legal teams have a stereotypical reputation for being bottlenecks within a business. The reason this stereotype is widespread, covering all industries, is because it’s not about you or the people on your team, it’s about the one thing all departments need from legal—Contracts. If you don’t proactively improve your contracting process and modernize your practices, you perpetuate legal’s negative reputation and isolated team structure. Without facilitating cross-functional collaboration and self-service opportunities for contracting across the business, you are holding the business back from growth and success. 3. It’s irresponsible. As legal counsel for your organization, you have a responsibility to ensure compliance and maintain a high standard of excellence. By neglecting your business’ contracting process, you’re not only holding back the rest of the organization, but quite frankly, you’re not doing your job. Legal departments have historically operated as a reactive function to the rest of an organization, but it’s time to be proactive. If you’re not managing your department by thinking about how to better create, control, and understand your contracts, you’re not fully honoring your commitment to your team. 4. You’re not doing anything with your contracts after they’re signed. There’s so much that goes into the contracting process, from creation and negotiation to review and signing, it involves effort at every step of the way. But, then what? Once the process is complete, most contracts just sit in a “box”. If a question about a specific contract arises or you need to reference an agreement’s renewal date, panic ensues. Where did we put that? Whose inbox is it in? Do they even still work here? You need a place to store all of your organization’s contracts that allows you to search and locate agreements based on metadata. That way, you won’t lose any more sleep over where contracts are when you need them. 5. There is a better solution. The biggest reason your old-fashioned contract process is destroying your business is because a better solution really does exist. What’s happening now with next-generation CLM and digital contracting is filled with possibilities and a different approach than before. The idea is that you can break contracts into discrete digital elements, each of which can be connected to digital processes and workflows, speeding up your process without risking compliance. When it comes to cross-functional relationships and your responsibility to your team, the newfound data in your contracts will help unlock new business opportunities and will help demonstrate the value of the legal organization overall. It’s really not just legal who should be interested in the content of contracts, it’s sales, finance, HR, procurement, customer success, anyone who engages with contracts in any way. There are more business insights to be drawn from contracts than any other document, tool, or product within an organization. When you start affecting your company’s revenue and its ability to execute business operations, everyone starts to get interested. While, yes, your current contract process may be destroying your business, digital contracting and next-generation CLM have the potential not only to reverse the course but to pave a new path of unprecedented success. So, what are you waiting for? About the Author Mary Shen O’Carroll is Chief Community Officer at Ironclad, the #1 contract lifecycle management platform for innovative companies. Prior to Ironclad, she spent 13 years as Director of Legal Operations at Google where she built and managed the operations of the Legal Department allowing the organization to scale from 200 to 1400+ people. During her tenure at Google, Mary was recognized by Financial Times (2019) as a top Legal Intrapreneur, by American Bar Association as 2018 Women of Legal Tech, by the American Bar Association as Legal Rebel in 2016, and by LegalTech News as Legal Department Operations Director of the Year in 2016. In addition, she recently served as President of the Corporate Legal Operations Consortium (CLOC), the largest and fastest-growing community focused on the business of law.
Legal Digital Transformation: Time to Think Like the Business
It has been a challenging 18 months. Pandemics, lockdowns, floods, fires, storming of the Capitol, Brexit, food shortages … an apocalyptic list, almost like an overly inclusive force majeure clause. I don’t wish to sound glib; the human cost of these events, Coronavirus in particular, has been significant, with many lives tragically impacted. As we emerge into a brighter future, it seems that we will need to learn to live with unpredictability, in both our personal and professional lives. The world of business has shifted irrevocably. A survey of chief executives, conducted by KPMG in March 2021, showed that a quarter of respondents think the pandemic has changed their business model forever. And what about the lawyers? Legal services has traditionally lagged behind other industries in embracing change and new ways of working. Despite many years of talk about ‘legal tech’, ‘reg tech’, ‘innovation’, ‘alternative legal services providers’ and ‘digital transformation’, the legal industry has remained, in the main, stubbornly wedded to the traditional ways of delivery. The pandemic forced a change, of sorts. Lawyers, like most knowledge workers, were sent home, and were compelled to use digital tools to get the job done. And although using Microsoft Teams does not exactly constitute full blown digital transformation, remote working has undoubtedly helped to move the dial and to soften the traditional lawyer resistance to more digital delivery. Satya Nadella, CEO of Microsoft, famously said in April 2020 that Microsoft had seen “2 years’ worth of digital transformation in 2 months”. Viewed in this light, the pandemic could be considered an opportunity for the legal services industry to rethink its delivery model for the next decade and beyond. Digital transformation has a critical role to play in this new model. Now more than ever, digital transformation is not an indulgence, but a necessity. This is about much more than remote working – to evolve to a digital operating model in a volatile and unpredictable world requires a shift in culture. Lawyers, in private practice and in-house, will need to cultivate the kind of culture that innovative and transformative businesses have already developed – a culture that is curious, adaptive, transparent, democratic, and comfortable with change. As businesses become more agile and speed-to-market becomes an even more urgent priority, corporate legal teams and external law firms serving the business need to keep pace – or risk becoming sidelined and irrelevant. Can a corporate legal team effectively support an agile business without adopting agile principles itself? Can an external law firm advise on the legal and regulatory implications of digital transformation without itself leveraging digital tools and approaches? In times of unprecedented volatility, can an analogue approach to client service ever be justified? During the repeated lockdown periods enforced by the pandemic, I thought a lot about these questions. I have been in legal services for over 25 years, as a lawyer, as a chief legal innovation officer, as a consultant, as a global head of knowledge, and, most recently, as the Executive Director of the Digital Legal Exchange. All these roles (with the exception of the fee-earning lawyer) involved pushing the boundaries and driving change, in an effort to improve service to clients. I have a lot of battle scars! I decided to synthesise my thoughts into a new book to help law firms and legal teams understand more about how to affect and sustain digital transformation. Have a look at Successful Digital Transformation in Law firms: A Question of Culture. My conclusion (not groundbreaking, no less true for that) is that any leader looking to future-proof a law firm or legal team must learn lessons from the operating model of successful digital businesses. What is it that unites successful digital companies, either those who are digital ‘natives’ or incumbents who have undergone a successful transformation? There are multiple factors, but they can be neatly distilled down to the following five elements. Successful digital companies: focus on customer/client needs and the customer experience above all else; take a strategic approach to digital transformation; commit to seeing the transformation through; hire the best people to make the change happen; and create a culture in which transformation can continue to flourish. Of these five elements, the most important is culture. There can be no successful or sustained digital transformation without the right culture to support it. Many of the cultural attributes required to be a digitally effective organisation are those we might associate with a ‘good’ or healthy corporate culture: attributes like organisational diversity (which fuels innovative thinking); transparency (which unites teams around a shared vision); and agility (which allows organisations to be responsive to change and serve customers better). The challenge, for law firms and for corporate legal teams alike, is how to build this kind of culture in an environment that is often resistant to change. During my keynote talk at the Legal Innovation and Tech Fest Online, I will be touching on these issues, and sharing some practical and actionable insights into how lawyers can build their digital muscles, embrace change and bring legal closer to the business. About the Author Isabel Parker, Executive Director for The Digital Legal Exchange (UK), has spent her career consistently pushing the boundaries and delivering change in the legal industry. She trained as a lawyer at Freshfields Bruckhaus Deringer then moved from fee earning to become Freshfields’ Chief Legal Innovation Officer, shaping the firm’s digital transformation strategy and leading the development of client-facing digital products. She moved in 2020 to become Executive Director of the Digital Legal Exchange, a not-for-profit with a mission to accelerate digital transformation within corporate legal functions. Isabel is passionate about customer experience, technology-focused legal education, and cognitive diversity.