Lawtech: a shared opportunityGlobal LegalTech Summit 20207 December 2020

now The future

the plan

The law and legal and court services serve an essential purpose in society

They ensure our collective rights and responsibilities and enable economic activity

Trade

Confidence

Disputes

Fairness

The legal sector underpins society and the economy

Citizen

Empowerment

The legal sector makes a significant economic contribution

400k

People directly

employed in UK legal services

£60bn

UK legal services

gross value added to the UK economy

4.9%

Legal sector projected

growth

$1tr

Predicted value of

global legal sector by

2021

technation.io

The time is ripe for innovation and digitisation

“The Fourth Industrial Revolution

is of a scale, speed and complexity that is unprecedented.

It will disrupt nearly every industry in every country,

creating new opportunities and challenges for people, places and businesses to which we

must respond.”

Department for Business, Energy & Industrial Strategy

Covid-19 has demonstrated adaptability and created

momentum

Covid sped up digital transformation by 5.3 years

Virtual court hearings

Rapid move to video communication

Expansion of cloud based systems

Normalised remote and flexible working

Increased demand for specific tech

Downward pressure on costs

Many countries are embracing technology in law

China - investing in online dispute resolution and smart contracts.

Singapore - government funding tech adoption, curated datasets and

computable law.

Australia - consortium building a cross-industry, blockchain platform for

smart contracts, ~100 lawtech cos.

Estonia - exploring robo-judging, has a chief data officer since 2018.

Netherlands - social impact funds, national strategy work through Dutch

Legal Tech.

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@lawtechuk

Lawtech£290m

Total raised by UK lawtechs to date, tripling in 2 years

44%UK share of the EU lawtech ecosystem,

double its share of the EU legal services market (23%)

110+Number of lawtech start-ups and scale-ups in the UK

5000+People employed in UK lawtech start-ups and

scale-ups

5Lawtechs on Tech Nation Upscale 5.0

marquee growth programme

Tech£10.1bn

2019 investment in UK tech cos, £4bn in fintech

#1Top scaling tech nation in Europe

#1Best place in the world to start a fintech

Top 3In the world for AI technologies

Law40%

Global arbitration cases applying English law

75%Commercial Court cases are international

#2In legal services fee revenue globally

Local leadership can have a global impact - UK example

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Accelerators, incubators, investors

Research funding, challenges and

ecosystem grants Community

Professional bodies, trade associations,

regulators

Lawtech ecosystems are active and developing, worldwide

Legal businesses, in-house, new law

DISRUPTIVE GENERAL COUNSELS’ NETWORK

GC100

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Lawtech/legaltech is now a broad church; the label becomes less needed over time

Technology-driven disruption in law

Delivery of legal services

Resolution of disputes

Legal self help

Digital lawEconomy

Law by tech businesses

Risk management tools

Tech by legal businesses

Tech in the court system

Global lawtech market

$15.9bn

LOW INVESTMENTTech investment has been a low priority for

the majority of firms. Concentration of investment in early stage companies, limited scale up investment demonstrating lack of

product traction. Tech

transformation of the UK legal

sector

LOW ADOPTIONAdoption of lawtech remains low in the B2B

sector and even lower in the B2C sector. Systems and infrastructure are antiquated.

NARROW INNOVATIONFocus remains on optimising existing

processes. The opportunity lies beyond automation in restructuring based on customer

need. Transformation not just automation.

LIMITED MODELS AND MARKETSExisting culture and business models

perpetuate the status quo. The opportunities of underserved markets have not yet been

explored. The sector is ripe for disruption as seen in healthtech and fintech.

There is positive progress, but evolution is nascent

Being behind the change curve is a serious and urgent matter in law

The legal sector must keep pace, to deliver what society and the economy need

Lawtech is an investment in the infrastructure of society and the rule of law

49.6%

Didn’t know what lawtech was

60%

Felt lawtech didn’t impact them

61%

Had little or no lawtech training

Statistics: Junior Lawyers Division of the Law Society of England and Wales - Survey and Report, January 2019

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@lawtechuk

DATAOpen access to structured legal data, to share knowledge and train the tech/ algorithms

RISK Effective risk management and prediction to mitigate harm in a changing world

ACCESS New and better legal info and services accessible for all, enabled through tech

DISPUTESEasy resolution of disputes and legal issues, to maximise rights and relationships

We can move to where business and society need us to go

CONTRACTSDigital contracts for efficient, transparent interaction and trade

LAW: Effective law, regulation and process that works for a digital, globalised society

60%

Businesses unlock new business models after digital transformation

x2 £350m

Increase in legal sector productivity due to the adoption of new technologies

Reduction in costs of legal services to UK business users by 2030

20-50%

Digital transformation generates an increase in customer satisfaction and economic gain

27%

Organisations pre-Covid who said digital transformation was a matter of survival

Moving beyond remote working, thinking beyond tech

The growth opportunity is significant, despite and through Covid

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@lawtechuk

LawtechUK Team

Leaders and experts in the sector act as an advisory board to

LawtechUK, actively involved in the work programme

Responsible for vision, strategy and delivery, the LawtechUK team at

Tech Nation drive the work programme

Transforming the UK legal sector through technology

The UK Government recognised the need to accelerate change in the legal sector

MoJ invested £2m to support the digital transformation of the

UK legal sector, and actively support the work programme

BENEFIT OF SOCIETY + ECONOMY

Foster transformative innovation

Global leading legal services and systemscommercial focus

Build lawtech awareness and understanding

Work programme

Objective

Intended results

Purpose

Increased experimentation, innovation and

growth

Greater confidence, legitimacy and

investment

Enhanced cohesion,

collaboration and urgency

Future-fit capability and approach

Better data, systems, networks

Digital transformation of the UK legal sector

Provide cross-sector leadership

Project 1: Lawtech Sandbox

Project 4: SME Dispute

Resolution Platform

Project 3: Guidance/Toolkits

Project 2: LawtechUK Hub

RemoteCourts.org

LawtechUK vision and work programme

BENEFIT OF SOCIETY + ECONOMY

Foster transformative innovation

Global leading legal services and systemscommercial focus

Build lawtech awareness and understanding

Work programme

Objective

Intended results

Purpose

Increased experimentation, innovation and

growth

Greater confidence, legitimacy and

investment

Enhanced cohesion,

collaboration and urgency

Future-fit capability and approach

Better data, systems, networks

Digital transformation of the UK legal sector

Provide cross-sector leadership

Project 1: Lawtech Sandbox

Project 4: SME Dispute

Resolution Platform

Project 3: Guidance/Toolkits

Project 2: LawtechUK Hub

RemoteCourts.org

LawtechUK vision and work programme

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The Lawtech Sandbox: growth through collaboration, towards a legal sharing economyAn R&D initiative to help fast-track innovative lawtech

Pioneers

Tech companies, academics, legal

businesses or consortia, who have potentially transformative ideas, products or services

Ideas, products and services that address the legal needs of UK business and society

Research, data insights, case studies and guidance

Policy recommendations

Ethics guidance

Connections through networks

Working withregulators

Access to data

Lawtech Sandbox

Learn, test and innovate, with government, regulator

and industry support

The inaugural Lawtech Sandbox cohort

Amplifi helps customers engage with technical legal information.

ClauseMatch transforms regulation into smart documents.

Legal Utopia provides DIY tools and makes it easy to get legal support.

The Deep Tech Dispute Resolution Lab is developing a tool for dispute and risk avoidance.

Peter Hunn at Clause and the Accord Project aims to provide an open source library of smart legal documents.

Application ProcessNovember

Onboarding, test and developDecember - February

ShowcaseMarch - April

BENEFIT OF SOCIETY + ECONOMY

Foster transformative innovation

Global leading legal services and systemscommercial focus

Build lawtech awareness and understanding

Work programme

Objective

Intended results

Purpose

Increased experimentation, innovation and

growth

Greater confidence, legitimacy and

investment

Enhanced cohesion,

collaboration and urgency

Future-fit capability and approach

Better data, systems, networks

Digital transformation of the UK legal sector

Provide cross-sector leadership

Project 1: Lawtech Sandbox

Project 4: SME Dispute

Resolution Tool Project 3:

Guidance/Toolkits

Project 2: LawtechUK Hub

RemoteCourts.org

LawtechUK vision and work programme

Learn Be Inspired Explore

LawtechUK Hub

The LawtechUK HubTransformation through education

Free information, education and training that translates know-how, insights and opportunity

into action.Launching in 2021

49.6%Didn’t know

what lawtech was

60%Felt lawtech

didn’t impact them

61%Had little or no lawtech

training

Law Society’s Junior Lawyers Division, Survey and Report, January 2019

Designed to help the global community of justice workers - judges, lawyers, court officials, litigants, court technologists - share their experiences of

developing remote alternatives to traditional court hearings in physical buildings.

Global database of know-how

Global community of practitioners

56 jurisdictions represented and growing

In partnership with

Society of Computers & LawHer Majesty’s Courts & Tribunals Service

www.remotecourts.org

Further advancing LawtechUK projects

Authoritative GuidanceUKJT

To facilitate the confidence and legal certainty needed for the adoption of

transformative technologies, responsive to areas of regulatory, legal and practical uncertainty or

challenge.

Further advancing LawtechUK projects

SME Dispute Resolution Platform

A tech-enabled online dispute resolution platform

to address the £11.6bn paid in litigation fees and the £50bn in late payments

arising each year.

A feasibility study and proof of concept will focus on an alternative, elective method

for SMEs to resolve late payments, without judicial determination.

What is the opportunity for greater collective endeavour through lawtech, for business and society?

now the future

what’s your plan?

technation.io

Thank youQuestions, ideas, challenges?

Jenifer Swallow, LawtechUK Director

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@lawtechuk

LinkedIN and Twitter @lawtech_UKRegister for updates at technation.io/lawtechUK

Email lawtechUK@technation.io

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