Law firms losing millions to tech

Legal firms across England and Wales are facing significant losses due to ineffective legal technology, costing nearly £2 million a year, as reported by a recent survey. This survey, conducted by Censuswide and commissioned by Access Legal, highlights that fee earners are losing an average of 4.16 billable hours each week due to administrative challenges, cumbersome manual processes, and inefficient time-capture tools.

The problem stems from a disconnect between the technology firms are implementing and the actual needs of the fee earners who use it. Fee earners have highlighted key areas of frustration: 28% attribute lost time to time recording and billing, 26% to switching between disconnected applications, 22% to document drafting, and 20% to client onboarding and anti-money laundering (AML) checks.

Andrew Stevens, General Manager at Access Legal, emphasised the need for technology that aligns with the way fee earners work, stating that what fee earners are telling us is straightforward. They need technology that works the way they work. Fee earners expressed that they do not want more applications or screens but rather a unified environment that seamlessly integrates time recording, compliance, and AI assistance alongside their case work.

Interestingly, there is a stark contrast in perceptions between fee earners and firm leaders regarding the efficiency of time tracking. While 71% of fee earners feel hindered by their firm's software, an equal percentage of leaders are confident that their case management systems effectively capture all billable time. This disparity indicates a critical communication gap that could be costing firms significantly, not only regarding technology investment but also in lost billable hours.

The findings underscore the necessity for legal firms to consider the perspectives of fee earners when making technology decisions. As firms grapple with rising National Insurance contributions, a consolidating software market, and clients reluctant to accept higher fees, recovering lost billable time is crucial. This research serves as a clear message that the voice of the fee earners should be integral to shaping legal tech strategies.