How Legal Departments Improve Themselves through New Technologies
The past year has led to radical changes in all companies. Home office and remote working became inevitable in most companies and a new way of working became mandatory. Like all crises, however, this one offers incentives and the opportunity to look around for new technologies and ideas.
Legal departments have also been dealing with the transition to home office over the past year and adapting to the new normal. As one of the areas in the company that has so far been rather little changed by new technology, new opportunities naturally emerged. Legal departments were able to assess the extent to which modern software could be helpful in their everyday work. This led to a boom in the legal-tech industry, where software is providing new and innovative ways for legal departments and lawyers to work more efficiently and calmly.
One area of the legal tech industry that stands out for its strong growth is the contract software. The aim here is to significantly speed up one of the most tedious processes of a legal department.
This is where automated contract review comes in. This software has been developed by various companies for 4 years. The core idea is that contracts that previously had to be checked manually can now be analysed and checked in the shortest possible time using software. Review and negotiation processes are thus significantly accelerated. The software is configured to review contracts based on the legal guidelines set within the company, thus providing strong risk mitigation.
Automated contract review will permanently and fundamentally change the way legal departments work and review contracts. Contract and business transactions will be accelerated, risk will be reduced and legal costs will be lowered. Unlike outsourcing to external law firms, this software has the added benefit of keeping the legal work in-house. Moreover, it is theoretically infinitely scalable, so it makes no difference whether it is supposed to facilitate the work of 5 or 50 lawyers at the same time.
Of course, when one reads about such software, there are also concerns that it will replace lawyers. However, the opposite is the case, the lawyer’s work is not replaced, but its scope is shifted. Lawyers can devote themselves to more important tasks again through automated contract review and also have more time to deal with these tasks. This not only usually leads to an increase in efficiency, but also to a greater sense of well-being at work.