LegalTech and data analysis to improve the efficiency of the legal sector

La digital transformation, whose objectives are the optimization of processes, the improvement of the customer experience or the promotion of new business models, is a reality that affects all sectors. In this regard, the legal sector is no exception, hence the rise of LegalTech (Legal + Technology).In recent years there has been an increase in the development of technological solutions and tools aimed at helping the legal system to do the job more efficiently. This is what is known as LegalTech. But what does this concept really mean?

The definition of LegalTech: what is it and what does it refer to?

The concept of LegalTech It's just the use of new technological processes and tools to provide more efficient legal services.It should be noted that, sometimes, the term LawTech is used as a synonym for LegalTech. For some jurists, these are different terms and should not be confused with each other, but there is no consensus about the limits and differences of each one. Continuing with the definition, this is an area that applies both to tools that facilitate the execution of tasks, such as financial management, such as services that take advantage of disruptive technologies, such as artificial intelligence or blockchain.

Examples of LegalTech tools

Through the application of different technologies, LegalTech tools can perform different functions, including data analysis, but there are many more. Below, we mention some of the most relevant ones.

• Localize information in large volumes of legal information. There are tools capable of extracting this legal content using Natural Language Processing (PLN) techniques. They seek to facilitate the filtering and location of information of interest in order to make it available to the user in a visual way.
• Perform predictive analysis. In the market, there are tools aimed at analyzing legal information and making predictions that anticipate behaviors and outcomes using artificial intelligence. These tools can answer questions such as how long a court case will last, what is the most likely sentence, or whether there is a possibility of appeal.
• Resolve legal inquiries. Using conversational assistants, also called chatbots, based on artificial intelligence, you can answer various questions, such as: how to overcome parking tickets, how to resort to bank fees or how to file a complaint.
• Assist in drafting contracts and lawsuits. LegalTech tools can also help automate and simplify certain tasks such as drafting, generating time and cost savings.
• Resolve legal disputes. There are some disputes that can be resolved in a very simple way, specifically using open source technological tools such as blockchain.

It is clear that LegalTech solutions become essential tools to facilitate intelligent data management and optimize legal workEven so, today there is a need to continue creating new technological tools capable of streamlining automated procedures to provide higher quality legal services.

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What role does open data play in the LegalTech sector?

For all these tools to work properly and to be truly effective in optimizing the work of a lawyer, it is essential to have valuable data, and Open data are a great opportunity. In fact, as stated by the Data Office, based on a Legal Data Vision initiative, 67% of innovation companies say they need access to data to develop transformative legal solutions. However, only 20% of lawyers say that their organization is able to obtain data effectively. In this context, LegalTech solutions that promote a intelligent data organization collaborate with an increasingly clear and defined need in organizations and companies in the industry. This is why, according to Gartner, legal areas are going to Increase spending on technological solutions by 200% by 2025. In France, for example, startups focused on this area and that reuse open data are already emerging. For their part, Spain is experiencing an expansion of the sector which will make it possible to implement improvements in the processes and services of legal companies. In 2021 alone there were more than 400 companies operating in this area, and worldwide, the sector generated more than 27 billion euros, according to data from Statista.

Boosting innovation in the LegalTech sector

But for this field to advance further, it is necessary to promote access to legal information in formats that can be read by machines and, of course, that allow mass processing. The summary of all this and the importance of data in the LegalTech sector lies in the fact that it is a Booming market thanks to disruptive technologies. Today, more than ever, legal firms need access to up-to-date and quality information, and one of the methods to achieve this is to know harnessing the potential of open data.For this reason, work must be done to promote access and responsible use of legal data to promote innovation in the sector and achieve results that benefit society.