It’s easy to understand why law firms value legal analytics, and why clients expect firms to use them. They enable law firms to make data-driven decisions that confer a competitive edge and enhance lawyer agility and operational efficiency.
But when you add up the numbers, where does legal analytics seem to be leading the legal profession?
The answer: Straight into the future.
Nearly every corner of legal practice in the 21st century will be affected by legal analytics. That trend is foreshadowed by statistics from ALM Intelligence that reveal more than 70% of law firms with 50 or more attorneys now use legal analytics in various capacities.
That figure suggests that short of a global throwback to typewriters and fax machines, an expansion is almost inevitable.
In fact, the expansion is happening right now, as in-house legal teams across the country use analytics to improve the efficiency of legal expenditures, mitigate risks and streamline processes. A data point from a Blickstein Group survey underscores the pace and scope of that expansion, showing 62% of in-house legal departments have already integrated legal analytics into their workflows.
And the ripple effect keeps going. According to a 2024 survey by Lex Machina, 65% of law firms that use legal analytics say they want to spread the use of legal analytics by integrating that data with other data in their firm.
As data-driven operations become the norm, they will change the way law firms work.
For decades, it was enough to build a career on deep expertise in a single area. But times have changed. Now you must be a multidimensional generalist.
For legal professionals, that means having skills that go beyond administrative brilliance or litigation savvy. It means having the ability to manage and use legal analytics. But that skill increases the value of everyone who develops it.
Case in point: A busy legal administrator who has strong competency in legal analytics can provide the data attorneys request faster than ever, with a high level of efficiency. That person now adds new value to the team.
Legal professionals can likewise use legal analytics to strengthen a firm’s business performance. Three statistics from Lex Machina’s 2024 Survey, The Impact of Legal Analytics, explain why:
Lawyers, too, are developing skills related to legal analytics — such as data analysis and business acumen — along with soft skills like cross-collaboration and project management. By honing these skills, lawyers become better innovators and problem solvers, capable of handling both trial and business strategies.
Underneath the umbrella of legal analytics is a data subtype known as predictive analytics. This analytical tool uses historical data and case precedents to forecast likely outcomes of legal disputes.
Predictive analytics are not a crystal ball, but they do help lawyers study patterns from past cases, enabling them to provide more accurate advice and develop effective litigation strategies.
They don’t assure a win, but they help level the playing field.
“A good legal analytics platform can likewise help evaluate client feedback as well, helping firms evaluate and improve their services based on client preferences, behaviors and satisfaction levels.”
Law firms can use predictive analytics to make crucial decisions, such as whether to litigate a case, the likelihood of a motion prevailing, or the appropriate legal fees to charge. Predictive analytics can also help manage client expectations, build trust and enhance the lawyer-client relationship.
Administratively, the power of predictive analytics can be used to look back at a matter’s billing data and visualize inefficiencies. These insights can help law firms be more effective at aligning their resources and — if the numbers suggest — adjust the cost of a matter.
As a result, matters can be estimated based on what they should cost rather than what they did cost.
Clear communication is essential for law firms to be successful in the courtroom, at the office or with clients. Legal analytics can help law firms communicate more effectively with clients and reduce the time some clients may otherwise have to spend struggling with legalese.
They do it by simplifying complex mountains of numbers and arcane concepts into friendly, digestible formats. Among those easy-to-understand visuals are pie charts, trellis charts, histograms and more — all of which improve the way information is communicated to clients.
That’s good news for law firms that want to improve customer satisfaction.
A good legal analytics platform can likewise help evaluate client feedback as well, helping firms evaluate and improve their services based on client preferences, behaviors and satisfaction levels.
Legal professionals work on tight schedules, performing work that has no margin for error. By nature, their work demands efficiency.
Data analytics can enhance that efficiency when law firms use the data insights to identify inefficiencies such as bottlenecks and duplicated efforts.
Firms can further reduce inefficiencies and ensure accountability with help from third-party vendors, whose data provides a clear window on the vendor’s performance as well as the performance of the law firm’s own staff.
For example, regular reporting on data metrics such as staff productivity, electronic court document filing and service of process success rates can identify areas where the firm may be losing money. These metrics can help decision-makers eliminate overspending.
Additionally, regular reporting from vendors provides a clear view of the services law firms pay for. These reports may cover factors such as case fees, invoice payments and service fees. This information, ideally available in various formats (PDF, HTML, CSV, Data Feed), cultivates greater accountability within a firm’s teams and its vendors.
Legal analytics may not yet predict case outcomes with perfect accuracy, but it allows us to analyze the past and forecast probabilities with growing reliability. Those types of insights are profoundly advantageous for clients, legal professionals and law firms that want to win cases and attract new clients.
That’s why the use of legal analytics is booming — and the numbers don’t lie. If your law firm hasn’t yet implemented legal analytics, it’s a sure bet that the decision will be coming soon to a boardroom near you.
