As we say goodbye to 2023, it's a time for reflection on our achievements and glimpse into the ever-evolving landscape of the legal industry. At PracticeEvolve, we take pride in the resounding success of EvolveGo, our cloud-based legal practice management solution designed for mid-tier law firms. Its triumphant launch exceeded our expectations in the Australian market and paved the way for its introduction in the UK earlier this year. However, as we celebrate our past accomplishments, it's equally crucial to anticipate the trends that will shape the legal tech world in 2024 and beyond. So, here are my thoughts on what's brewing in the market.
The Age of Simplicity
Our recent report, "State of Cloud – From Migration to Realisation", sheds light on a critical aspect of legal tech: simplicity. Practice Management Systems (PMS) are indispensable for legal practices, yet many firms are yet to unlock their full potential. Over half of Australian respondents acknowledged their reliance on a PMS, but often, they explore less than half of the system's capabilities. This might be due to adopting overly configurable, complex systems that leave little room to explore evolving functionalities.
In today's fiercely competitive legal landscape, where talent is increasingly scarce, law firms are recognising the value of streamlined solutions. They are actively seeking simplicity in their technological tools. This shift is accelerated by demographic changes as millennials now outnumber baby boomers in the legal community. These tech-savvy lawyers value efficiency and are drawn to firms that align with their technological aspirations. Thus, the need for simplicity in software will become even more paramount in 2024.
Our agile, all-in-one cloud practice management solution, EvolveGo, directly addresses this need. The ongoing value of a streamlined solution like ours is in its regular updates and refinement. It's designed for ease in deployment, use, and reporting. This strategy minimises challenges and costs linked to frequent in-house customisations, particularly when onboarding new staff, adjusting to legislative shifts, or maintaining bespoke processes that that rely on the expertise of seasoned professionals who becoming harder to find.
The Cloud's Strategic Role
One undeniable trend in the legal tech sphere that is gaining momentum is the shift from on-premises solutions to cloud-based platforms. And our sales data is a clear reflection of this transition. This year, we've seen an astounding 135% increase in user sign-ups globally, demonstrating the market's unmistakable momentum. Notably, a staggering 90% of these new users opt for our cloud solutions, pointing to a strong preference for cloud technology.
This shift aligns with the changing mindset of law firms, recognising cloud-based solutions as the way forward. Importantly, this transition isn't just about keeping up with the times; it's about strategically positioning legal practices for the future. Our report showcases this shift, with 43% of Australian respondents describing their strategy as "cloud-first." Furthermore, the report reveals that although only 36% of Australian respondents have moved their systems to the cloud, not one denied that cloud featured in their future plans. A quarter are assessing their business needs, while another 39% are actively gathering information or are in the process of migrating some applications.
The era of over-customisation is giving way to solutions that harmonise adaptability with user experience. Lean systems, specifically native cloud solutions, are pivotal in this transition. Imagine accessing legal software through any internet browser without the traditional complications of VPNs or dedicated servers. It's not a distant dream; it's today's reality. For instance, our cloud-native legal accounts solution, integrated into EvolveGo, was meticulously developed by proactively anticipating market needs. Every aspect of our technology is purpose-built and informed by the actual, on-the-ground, demands of legal professionals.
The AI Evolution
As legal firms seek disruptive and innovative strategies to enhance efficiency, with 41% of businesses aiming to reshape their current practices, the spotlight is on Artificial Intelligence (AI). AI is undoubtedly one of the hottest topics in the industry, with its potential to revolutionise legal service delivery. In the next phase for PMS systems, we foresee automation reshaping the legal profession. The surge in the application of AI and machine learning is undeniable. These technologies are transforming traditional processes, from document review to predictive analysis and foundational legal research.
AI is replacing the traditional image of lawyers poring over stacks of papers with algorithms that sift through data at unprecedented speeds, providing deeper insights and efficiencies. In the next year, we foresee AI and data analytics transitioning from being add-ons to essential decision-making tools. This evolution promises operational enhancements, data-driven client engagements, and more efficient legal counsel, all supported by AI-driven insights.
With that in mind, and as we look to the year ahead, our approach to practice management software goes beyond a user-friendly interface and a robust feature-suite; it involves embedding new technologies like AI into the system, transforming it from a supplementary feature into a fundamental tool that supercharges talent and productivity.
Conclusion
As we wrap up 2023 and gear up for 2024, the legal tech landscape is undergoing a seismic shift. EvolveGo's success in Australia and its launch in the UK stands as testament to our commitment to simplifying technology for law firms. The trends highlighted in this article—from cloud adoption to the AI revolution—underscore the need for law firms to embrace innovative technologies and adapt to changing demographics.
At PracticeEvolve, we envision a partnership with mid-tier law firms that goes beyond software—it's a commitment to continuous innovation and adaptation. We are ready to lead firms into a future where they not only survive industry shifts but seize them as opportunities for growth. As we step into 2024, we invite you to join us on this exciting journey of transformation in the legal industry.
Author: Anthony Bryce, Sales Manager at PracticeEvolve
For further information, please contact Iryna Uvyaz at Iryna.uvyaz@practiceevolve.com
