LSB: Pandemic saw step change in use of innovation and technology

Legal Services Board (LSB) research has shown a step change in the use of innovation and technology to develop and deliver legal services since the pandemic, with 92% of firms saying that Covid-19 and its associated restrictions increased their trust in and use of technology.

The LSB research published in June tracked changes since the last survey in 2018 and was based on responses from over 1,300 legal services providers.

It found 95% of firms thought implementing new technologies had made them more responsive to client’s needs and, for the vast majority, had reduced the time taken to deliver services.

Of those surveyed, 61% had introduced at least one of 13 ‘technologies for access', making it easier for people to access legal services. These included video conferencing, electronic signatures, identification-checking tools, websites with interactive features, live chat or virtual assistants, and custom-built smart apps.

For 60% of firms, there was an expectation among their clients that they would use technology to deliver legal services, although less than half of firms thought technology could make it cheaper to do so.

The use of more advanced technologies like technology-assisted review, predictive technology, robotic process automation, and blockchain or distributed ledger technology remained low at between 2% and 5%, although 12% to 15% of law firms expected to use them in the next three years.

Alan Kershaw, chair of the Legal Services Board and former chair of what is now CILEx Regulation, said “technology has the potential to widen access to legal services dramatically” and reiterated the LSB’s commitment to ensuring that regulation “unlocks its benefits for consumers and providers”.

He highlighted the importance of building on the pandemic-driven momentum in this area “to foster a culture of innovation that designs services around the needs of consumers”, stating that “regulators must be proactive in understanding the opportunities and risks and remove barriers which prevent innovators entering the sector and stop consumers from accessing services”.

The LSB is developing new statutory guidance for regulators on promoting the use of technology for access and will consult publicly later this year. This guidance is expected to clarify its expectations of regulators, including the need for regulatory frameworks to be open to technology and innovation that benefits consumers and that regulation should be a positive, enabling driver for change.