Who wins and loses as the legal industry warms up to tech, according to 6 top VC investors - Business Insider

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Who wins and loses as the legal industry warms up to tech, according to 6 top VC investors

by existing technology, McKinsey estimates in a study last updated in 2018.

In-house teams are typically less risk-averse than law firms, explained Hannah Seal, principal at Index Ventures, and so tend to be early adopters when it comes to technology. A partner at a firm might then notice the software's potential, and bring it to the firm.Top VCs say these 9 legal tech startups are poised to take off as clients pressure law firms on costs

"Software automation carves out the rote processes, allowing lawyers to focus on creativity, and redirect attention and resources toward value creation for clients," said Vas Natarajan, partner at Accel. "You can gain these skills doing high-value work rather than forcing yourself to do what a machine can do better," said Index Ventures' Seal. "And I think you'll see an increasing move away from the mundane and into the more cerebral, value-add, trusted advisor-type role."

Chung explained that as long as Big Law continues to operate as a large, "military" operation, there's no financial incentive to shake up its business model, which is centered around the high value of human time .

 

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