How Legal Tech and Operations Are Shaping the Future of HR Law 

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Aishwarya Wagle
Aishwarya Wagle
Aishwarya is an avid literature enthusiast and a content writer. She thrives on creating value for writing and is passionate about helping her organization grow creatively.

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The legal industry is undergoing a significant transformation, one that is driven not just by evolving technology but also by shifting financial strategies. As businesses adapt to an unpredictable economic landscape, they are making smart moves to stay competitive—whether by cutting costs, investing in long-term resources, or leveraging technology. This change is particularly evident in the rise of legal technology and legal operations, areas where growth is showing no signs of slowing down. Let’s dive into how these trends are reshaping the legal sector. 

The Growing Investment in Legal Technology 

Despite economic uncertainties, legal technology has proven to be a worthwhile investment for many organizations. In the first half of 2024, legal tech funding reached nearly $2.5 billion, almost matching the previous year’s impressive figure. This consistency indicates a strong belief in the long-term benefits of adopting tech-driven solutions to streamline legal processes, boost efficiency, and reduce dependency on outside counsel. With companies aiming to cut costs and manage legal workflows more effectively, this investment in technology is set to continue its upward trajectory. 

In-House Talent Development Takes Center Stage 

With organizations feeling the pressure of rising costs, there’s a growing trend of bringing legal functions in-house rather than relying on expensive external counsel. This shift has sparked a renewed focus on nurturing in-house talent. Legal departments are increasingly investing in upskilling their teams, providing them with the tools and training needed to handle complex legal issues internally. By fostering this in-house expertise, companies can both reduce costs and improve the agility of their legal teams, making them a more integral part of the business strategy. 

Legal Leaders’ Confidence in Tech Investment 

According to a recent Gartner survey, a significant 66% of legal leaders are planning to accelerate their investments in technology over the next few years. This shows that, even in a tough economic environment, there is strong confidence in the power of legal tech to drive efficiencies and improve outcomes. Whether it’s automating repetitive tasks, improving document management, or enhancing compliance efforts, technology is becoming a key enabler in the modern legal department. 

The Rise of Legal Operations 

Legal operations, or “legal ops,” is quickly becoming a critical function in both law firms and corporate legal departments. Think of them as the support system that lets lawyers focus on their core work while ensuring the legal department runs smoothly. More than half of law firms and 45% of in-house teams have already established a legal ops function. As businesses face increasing pressure to manage resources more effectively, legal ops teams are playing a crucial role in optimizing workflows and aligning legal strategies with business goals. 

Legal Ops Bucking the Trend of Budget Cuts 

While many legal departments are facing budget reductions, legal operations teams are actually seeing an influx of financial support. Around 81% of legal ops professionals expect their budgets to grow in the coming financial cycles, with many already benefiting from increased funding in 2023. This surge in support reflects the growing recognition of the value that legal ops bring to an organization. As teams expand and mature, the focus will likely be on ensuring that operations are lean, efficient, and well-aligned with broader business objectives. 

Expansion and Growth for Legal Ops Teams 

The future looks bright for legal operations professionals. A remarkable 94% of legal ops teams predict expansion in the next two years, reflecting the growing importance of their role. As companies continue to streamline their legal functions and adopt new technologies, legal ops teams will be at the forefront of these changes, driving efficiency and facilitating smoother legal processes. This growth underscores the increasing reliance on legal operations to shape the future of in-house legal teams. 

Conclusion 

The legal industry is evolving at an exciting pace, driven by both technology and a shift in how legal functions are managed. As organizations continue to prioritize cost-efficiency and smarter legal practices, the rise of legal tech and legal operations will only become more pronounced. The future of legal departments looks bright, with technology and operations working hand-in-hand to create a more streamlined, cost-effective, and innovative approach to legal challenges. 

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