By Rolando Alvarenga, Arias Â
In recent years, legal innovation has profoundly transformed the landscape of the legal profession. From being a discipline associated with formality and tradition, the legal sector is adopting disruptive technologies that optimize its services, improve efficiency and open new opportunities for legal professionals. This evolution is not only changing the way legal services are provided, but also how law is conceived and practiced.
Legal innovation refers to the adoption of new technologies, methods and approaches to solve legal problems more efficiently and effectively. Ultimately, legal innovation seeks to improve the quality of legal services, making them more beneficial to the needs of the modern client.
The drive towards innovation in the legal sector has been motivated by various factors. Technological advances are perhaps chief among them, with the integration of tools such as artificial intelligence (AI), data analytics, machine learning and blockchain enabling the improvement and precision of various legal services.
Client demand is another important factor. Clients are looking for more agile and personalized solutions. Digital platforms allow for a more direct and transparent relationship between legal professionals and clients, bringing greater convenience to legal services.
Likewise, regulation and access to justice is also driving legal innovation. In some countries, legal reforms are promoting the use of technological tools to ensure that access to justice is faster and cheaper, especially in overburdened court systems.
Legal technology encompasses a variety of tools and software solutions designed to help legal professionals navigate the complexities of the law. Some key examples are: software that streamlines the drafting, review and management of contracts; online dispute resolution (ODR) platforms; applications that can help predict case outcomes.
Despite the advances, legal innovation also faces several challenges. Among them we find resistance to change and data protection.
Resistance to Change in Legal Innovation
Despite the advances and undeniable benefits that legal innovation can offer, one of the biggest obstacles in its implementation remains resistance to change. This resistance comes not only from legal professionals, but also from institutions, clients or the regulatory framework itself. Resistance to change in the legal sector has multiple causes, some related to cultural factors, others to practical considerations and, in some cases, to a lack of confidence in new technologies.
Law is a historically conservative discipline. Legal professionals, for the most part, are trained in a system that emphasizes formality and tradition. Technology, therefore, can be perceived as a threat to this traditional way of practicing the profession. Changing the way laws are practiced can lead to insecurity and uncertainty.
Many times, resistance comes from a lack of knowledge about new technologies. Legal professionals who are not familiar with technological tools may feel that these innovations are difficult to integrate into their daily practice. Without adequate training, adopting new technologies can seem like a daunting task, especially for more veteran professionals.
Distrust in technology is another relevant factor. Law is a discipline where human interpretation plays an essential role, and many share the concern that technology cannot understand the complexity of legal nuances or the subjective interpretation of laws.
Overcoming Resistance to Change in Legal Innovation
Although resistance to change is understandable, it must be addressed to harness the potential of legal innovation. One of the most effective ways to reduce resistance is through continuing education and training. Legal professionals must receive training in the use of new technological tools. Refresher courses in technological law and certifications in new technologies will help legal professionals become familiar with these advances and understand their benefits.
Change should not be abrupt. Instead of forcing the adoption of completely new technologies all at once, a gradual implementation can be chosen. This involves introducing innovations in a phased manner and adapted to the needs of each legal practice. A progressive approach allows for more comfortable adaptation and reduces the fear of change.
Now, leading organizational change according to the conventional management playbook is difficult and often frustrating, and such efforts rarely stay on track. According to the article “A Better Way to Unlock Innovation and Drive Changeâ€Â 1 , in the authors’ hard-won experience in organizational transformation projects at several companies, they found that the idea of ​​a large-scale transformation can leave employees feeling overwhelmed and unsure about their ability to thrive in the new order. But they learned that by implementing a strengths-based approach at the individual level and then using it to build and manage diverse teams, they could gain employee commitment to the transformation. This approach can help reduce anxiety and burnout, increase inclusive and collaborative behaviors, and overcome hierarchical and functional boundaries. The four steps to successfully drive transformation according to the referenced article are:
- Create an organizational strengths framework and socialize the language. Assess employees using objective, proven tools to identify their top strengths. Institutionalize communication around strengths through simple actions, such as including people’s strengths in their email signatures. Use strengths language routinely to help employees see themselves and others as uniquely capable contributors.
- Map the strengths profile of all unique roles in the organization so that people begin to view jobs through that lens. Match available strengths (people) to needed strengths (roles) to help restructure people into roles based on what they are naturally good at and reduce biases in talent decisions.
- Identify the organization’s strategic priorities with engagement from middle managers across the organization. Assemble diverse, strengths-based teams to work on each of those business priorities, spanning all functions and levels. Train and equip teams with design thinking tools and techniques to develop collective, innovative problem-solving capabilities.
- Anchor all talent systems and processes to the strengths framework: hiring, onboarding, performance measurement, reward and recognition, development, role shifting, and promotions. Shift the focus of the performance measurement system from individuals to teams to measure progress and impact.
The key is to understand that technological tools are not intended to replace professional judgment (at least not yet). On the contrary, technological tools can make legal professionals more efficient and effective, allowing them to focus on more strategic and valuable aspects of their work, such as interpreting the law and providing personalized advice.
Security and Privacy Concerns in Legal Innovation
One of the main risks associated with legal innovation is the management of sensitive data, such as confidential client information, court cases or evidence. The digitalization of this data increases vulnerability to cyberattacks, hacks or information leaks. Law firms and judicial institutions must implement strict security measures, such as data encryption and the use of secure access management systems, to protect this information and ensure the integrity of legal proceedings.
The adoption of AI-based tools in the legal sector also poses ethical and security challenges. For example, AI can be used to predict the outcome of cases, but if the algorithms used are not transparent or have biases, they can affect the fairness of judicial processes. In addition, the lack of transparency in the use of AI could generate distrust in its application in legal proceedings.
In the context of legal innovation, technological tools must be aligned with regulatory frameworks to avoid sanctions and protect the privacy of individuals. New technologies can facilitate the analysis of large volumes of data, but they also pose the risk of infringing privacy if not managed properly. Laws and regulations must adapt to new technological realities. In the case of El Salvador, the recently approved Cybersecurity and Information Security Law and the Personal Data Protection Law seek to strengthen the protection of Salvadoran information and prevent possible crimes.
Furthermore, with the increasing adoption of digital platforms for legal document management, video conferencing, and online consultations, there is a risk that malicious actors may gain unauthorized access to confidential information. Security breaches, such as stolen credentials or access to platforms without proper authentication, can compromise the integrity of legal documents or processes and result in harm and damage for all involved.
As technological advances change the legal landscape, it is critical that legal professionals receive adequate training regarding digital security and privacy. In addition, legal platforms must have security certifications and offer guarantees regarding the ethical handling of information.
It is essential that technological innovations in the legal sector respect the ethical and privacy standards established by current or future applicable regulations. To do so, legal professionals must be involved in the development of applicable regulations and the implementation of these technologies, ensuring data security so that one of the fundamental principles of the legal profession, namely confidentiality, is fulfilled.
The Future of Legal Innovation
Legal innovation is not a trend but a transformation that is shaping the future of the legal profession. However, change requires a balanced approach, combining human expertise (tradition) with the power of technology (innovation).
Resistance to change in legal innovation is a challenge that must be overcome if the legal industry is to move towards a more efficient and effective future. Despite initial mistrust, the benefits offered by new technologies are too significant to be ignored. With a combination of training, gradual implementation and a collaborative approach, the legal sector can effectively embrace innovation, ensuring that technological advances are a tool that improves the practice of law.
While technology-led legal innovation offers opportunities, it also raises valid concerns such as data security and privacy. It is critical that technological solutions in the legal field are designed and implemented with updated data security and protection regulations in mind and that legal professionals are adequately trained to mitigate the associated risks. Only in this way can it be ensured that advances in legal technology are beneficial and do not compromise trust in digital legal services and systems.
Legal professionals who adapt to these advances and take advantage of technological tools will be better positioned to offer a higher quality service and improve client satisfaction. Ultimately, legal innovation focused on new technologies promises to redefine the legal profession and transform the relationship between law and society.
The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, nor does it constitute, an attorney-client relationship. Readers should not act upon this information without seeking the advice of legal professionals.
