A study by due diligence software provider SearchFlow found 95% of law firms said the pandemic has accelerated their digitisation strategies, and 71% of senior real estate lawyers agreed digitising aspects of the legal process would give their firms a competitive advantage or market differentiation. The report, Commercial real estate lawyers of the future, published last week, also found 64% of firms have a digitisation roadmap already in place or in progress.
However, some lawyers said they are struggling when it comes to integrating AI or automation. More than half the lawyers complained the fast-moving pace of technology made it difficult to scope what was required, while 43% found the technology too expensive and were having difficulty aligning budgets, and 40% of the lawyers cited change management as a potential obstacle, suggesting training, changing mindsets and incorporating change in day-to-day processes are hurdles that need to be overcome.
Others expressed concern about risk management―nearly half the lawyers believed increased use of automation in due diligence processes would increase their firm’s exposure to risk.
Dr Thomas Quirke, managing director of SearchFlow, said: ‘Looking into the future, while various barriers to AI adoption have been cited and represent the clear market challenge, there is a consensus that the use of more data driven processes and automation will play their part in enhancing the real estate transaction process.
‘Some 60% agreed that greater digitisation will enable lawyers to evolve their roles or upskill, as fewer manual interventions will be required. By 2025, a majority agree that technology adoption will lead to faster completions, overall better decision-making and a reduction in administrative steps, meaning practitioners can focus on progressing deals, removing human error and managing risk.’
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