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Lawyers next for the buffet of outsourcing and computing

Look out, lawyers, the days of charging $500 an hour are numbered, as digital disruption cuts a swath through the oldest and most conservative of professions and up-ends traditional legal services.
By · 10 Sep 2013
By ·
10 Sep 2013
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Look out, lawyers, the days of charging $500 an hour are numbered, as digital disruption cuts a swath through the oldest and most conservative of professions and up-ends traditional legal services.

Canadian barrister, author and legal futurist Mitch Kowalski says the writing is on the wall - and traditional firms whose partners ignore it will find themselves elbowed out by more nimble and keenly priced upstarts.

In Australia this week as the keynote speaker at the annual LawTech Summit in Noosa, Queensland, Mr Kowalski says computers themselves will take over much of the brain work that keeps lawyers in jobs.

Applications that enable clients to enter a series of facts and receive the probable outcome of a legal matter, based on the relevant case law and statutes, stand to shorten the litigation process dramatically. In some cases they will head it off altogether, Mr Kowalski believes.

"It will reduce the amount of litigation. Very little reaches trial stage and even less will do so."

Meanwhile, more low-end jobs will be outsourced to cut-price lawyers working for legal process outsourcers in South Africa, the Philippines and India, leaving fewer opportunities for graduates entering the profession, he said.

The information and communications technologies sector has experienced a similar phenomenon over the past 10 years. Companies have sent programming and support work to developing countries, a move Australians ICT professionals say has destroyed career opportunities for local graduates and mid-career workers.

"The old model of delivering legal services is at the end of its natural life cycle," Mr Kowalski said. "It has served us well for 100 years and now it doesn't."

The US already had a glut of lawyers and these developments would exacerbate the problem.

Read the full story at smh.com.au/it-pro
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Frequently Asked Questions about this Article…

The article describes digital disruption and legal technology replacing much of the 'brain work' lawyers do. Computer applications that predict outcomes and automate routine tasks are shortening or even preventing litigation, putting pressure on traditional law firms and their billing models.

Mitch Kowalski is a Canadian barrister, author and legal futurist who spoke as the keynote at the LawTech Summit in Noosa. He warned that computers and new legal apps will take over much legal work, reduce litigation, and force traditional firms to adapt or risk being displaced by more nimble competitors.

According to the article, applications let clients enter a series of facts and receive a probable outcome based on relevant case law and statutes. These tools can resolve issues earlier, reduce the need to go to trial, and in some cases head off litigation entirely.

The article explains that low-end legal jobs are being outsourced to cut‑price legal process outsourcers in countries such as South Africa, the Philippines and India. This shifts routine legal work away from domestic firms and graduates.

The piece warns that outsourcing and automation will leave fewer opportunities for graduates entering the profession. Low‑end roles are likely to be moved offshore, reducing local entry‑level and mid‑career job prospects.

Yes. The article compares the legal sector to the information and communications technologies (ICT) sector, where over the past decade programming and support work was sent to developing countries, eroding career opportunities for local graduates and mid‑career professionals.

He means the century‑old way law firms bill and deliver services is becoming obsolete due to technology and outsourcing. While it worked for many years, new tech and business models are changing client expectations and how legal work gets done.

The article notes the US already has a glut of lawyers, so automation and outsourcing are likely to exacerbate oversupply, putting further downward pressure on fees and making competition tougher for traditional firms and individual practitioners.