Market Trends of Legal Services Industry
The Prevalence of Security Breaches in Law Firms is on the Rise.
Law firms are one of the industries that are having a hard time staying competitive in today's cyber world. Law firms have a significant amount of sensitive information regarding their clients, not only in terms of personal data but also in terms of other sensitive information, such as confidential corporate data, trade secrets, M&A data, medical data, and more. So, if a law firm is hacked, the firm’s reputation and revenue are at risk, particularly if data is compromised. For instance, global weekly cyberattacks increased by 7 percent in the first three months of the current year compared to the same period last year. On average, organizations endured 1,248 cyberattacks per week in the first quarter of this year. A law firm or an insurance provider was targeted in one in every 40 cyberattacks. According to an American Bar Association survey conducted last year, more than one-quarter of law firms reported a data breach, a 2 percent increase from the previous year. Therefore, as law firms handle vast amounts of confidential client data, information, and money, they’ve become an attractive target for hackers over the years. However, many businesses have “understandably weak information security policies and procedures.”
Rise in Legal Technology Use by Law Firms is Driving the Market Growth
Law firms are increasingly embracing a range of technologies to offer legal services at a lower cost, more efficiently, and to a higher standard. Law firms are heavily reliant on a variety of technologies, including in-house software, cloud technology, artificial intelligence, the Internet of Things, Word processors, e-discovery systems, time tracking and billing technology, blockchain-based smart contracts, payment solutions, augmented and virtual reality, and more. These technologies have enabled lawyers and law firms to digitize the processes associated with providing legal services, leading to improved accessibility and quality. AI has the potential to transform the legal system, as it can be used to analyze large amounts of data, predict the outcome of cases, facilitate communication between lawyers and clients, automate e-discovery processes, simplify case management, leverage analytics, create online communities, and bring more transparency. Additionally, AI-powered language translation facilities can be used in court proceedings to facilitate real-time translation.
