Legal Tech Revolution: Transforming Trustees Work
During the 1970s, LexisNexis emerged in the United States as a pioneering electronic database, making legal and journalistic documents more accessible. By 2006, LexisNexis had developed the world's largest electronic database for legal and public-records-related information.
In 1987, Canadian professor Hugh Lawford revolutionized the legal landscape by developing Quic/Law, which later evolved into Quicklaw. This project became one of the first firms dedicated to legal research, marking a significant milestone in applying technology to the legal field and aiding lawyers in case preparation.
Despite these early efforts, the high cost of computers restricted access to corporations. The 1990s, however, saw the advent of personal computers and the internet, democratizing access and enabling a digital transformation within the legal industry.
The legal tech landscape further evolved in 2001 when LegalZoom introduced a Do It Yourself (‘DIY’) model for contract creation. Users could generate contracts by following a series of steps, print, and sign them, making legal services more accessible.
Following the launch of LegalZoom, Rocket Lawyer entered the market in 2008, offering an extensive array of contract services, including wills, corporate agreements, and intellectual property registrations. This innovation effectively transformed tasks traditionally managed by lawyers into accessible software solutions.
Meanwhile, Avvo, founded in 2007, applied the multi-sided platform model to the legal industry. Much like Yelp or TripAdvisor, Avvo enable users to view lawyer profiles, check reputations, and engage in forums to ask legal questions, further democratizing access to legal services.
LexisNexis, and Westlaw from Thomson Reuters exemplify how technology can aid lawyers, while LegalZoom, Rocket Lawyer, and Avvo targeted consumers directly. This marked the beginning of disintermediation in the legal value chain and signaled the digital information era in the legal industry.
The Concept of Legal Tech
The term "Legaltech" originated in 1979 with LexisNexis' introduction of UBIQ, the world's first terminal with an automatic dialer that connected to legal databases. Over the past 40 years, legal technology has significantly evolved, especially since 2008. Initially, Legaltech referred to the use of technology to provide legal services.
However, the 2007 economic crisis shifted its meaning. As law firms sought greater efficiency and cost reduction, Legaltech began to include startups offering tools to make legal work more efficient and less expensive. By 2016, Legaltech was defined as technology in legal services designed to:
Reduce or eliminate the need for traditional legal services.
Accelerate legal tasks, reducing time and cost for professionals.
Simplify interactions between legal professionals and clients.
Since then, the concept has grown, with new versions emerging, primarily from the U.S. and U.K., under the term Lawtech. The Law Society of England recognizes only Lawtech, not Legaltech.
Impact on Trustees
For trustees, the rise of Legaltech/Lawtech signifies a transformative shift in how they operate. Traditional tasks such as contract creation, estate management, and legal compliance can now be streamlined through technology.
Legal databases and research tools enhance the efficiency and accuracy of legal research, reducing the time and cost associated with these activities. DIY legal platforms empower trustees to handle routine legal matters without constant reliance on lawyers, allowing for more autonomy and cost savings.
Moreover, platforms like Avvo facilitate better decision-making by providing access to lawyer profiles and peer reviews, enabling trustees to choose legal representation more effectively.
The integration of AI and advanced analytics in legal tech tools can further assist trustees in managing complex legal matters, ensuring compliance, and optimizing asset management strategies.
The evolution of legal tech from Quic/Law to platforms like LegalZoom, Avvo and the modern version of LexisNexis underscores the profound impact technology has on trustees' work.
By embracing these innovations, trustees can enhance their efficiency, reduce costs, and ultimately provide better service to their beneficiaries. The future of trusteeship lies in the continued integration and adoption of legal technology, driving a more efficient, transparent, and accessible legal landscape.
