Antoine Verdon / Swiss LegalTech Association
LegalTech
Overview & Trends
November 14, 2017
Advanced incumbents�Start adapting to the new models
Early adopters�Start embracing the new business models
New trends�emerge
Innovative startups�create disruptive �business models
Mainstream�customer adoption
Large �incumbents�die
Legal
T
The new normal
Failure to adapt
Why now
Digital media
Travel
Music
Consumer
Insurance
Legal technology is lagging behind
Banking
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Landscape
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Situation in Switzerland
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4 current trends���Marketplaces
Uberization of law
Automated document creation
Smart contracts�
1. Marketplaces
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1. Marketplaces
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Legal services 2015
Legal services 2025
Legal services 2035
99%
1%
50%
40%
10%
25%
45%
30%
2. Uberization of law
API for backoffice tasks �(Mechanical Turk)
API for designs
API for cleaning services
API for translations
API for driving services
Task APIs
Automation
BELOW�THE API
JOBS
BELOW�THE API
ROBOTS
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API for arbitration services
2. Uberization of law: first platforms in US and France
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��
�
Lawyers rely upon such tools as checklists or procedures that articulate good practice. They reuse pre-articulated bodies of text such as standard-form documents or templates, or past work product, such as opinions, advice or solutions.
3. Commoditization
Digitalization of legal services
The legal services industry is currently entering a phase of deep transformation. The most basic tasks are automatized, simple services are commoditized, clients are empowered and professionals must increasingly focus on value-added services.
“Our view is that there is nothing so special or unique about professionals’ knowledge to suggest that some of it cannot be made easily accessible and understandable on an online basis.” ― Prof. Richard Susskind (in The Future of Lawyers)
Traditional, one-to-one consultative professional service, highly tailored for the specific needs of particular clients. Advocacy in the courtroom is an example of such service.
Bespoke�Hourly billing
Standardized�Hourly billing
Systematized�Fixed fee
Systems that are used within the law firm are made directly accessible to clients, usually across the Internet. For example, document assembly systems are given to clients to use directly.
Packaged�Fixed fee
Packages are perceived as a commonplace, a raw material that can be sourced from one of various suppliers. Just as barrels of oil or sacks of sugar are regarded as basic and readily available offerings, then so too are legal commodities.
Commoditized�Price zero
Checklists and written procedures are brought to life using techniques such as interactive checklisting and know-how databases. These tools are for internal use only, enabling speedier and more consistent legal work.
- degree of knowledge transfer (human to machine) +
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3. Commoditization: automated document creation
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3. Commoditization: automated document creation
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4. Smart contracts
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Blockchain & smart contracts
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Merchant
Customer
Clearing House
Bank issuing consumer’s card
Merchant bank
$
Monthly statement shows purchase
Issuing bank credits merchant’s account
Customer makes purchase
Merchant �sends goods
Blockchain & smart contracts
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Merchant
Customer
Customer makes purchase
Merchant �sends goods
$
Blockchain & smart contracts
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Merchant
Customer
Customer makes purchase
Merchant �sends goods
Merchant
$
$
Blockchain & smart contracts
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Merchant
Customer
Customer makes purchase
Merchant �sends goods
Merchant
$
$
Blockchain & smart contracts
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Merchant
Customer
Bank issuing consumer’s card
Merchant bank
$
Monthly statement shows purchase
Customer makes purchase
Merchant �sends goods
Escrow account setup
Monthly statement shows transaction
Escrow account
Escrow agent
Confirmation (receipt of goods)
$
Confirmation: receipt of funds
Blockchain & smart contracts
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Merchant
Customer
$*
Customer makes purchase
Merchant �sends goods
5. Blockchain & smart contracts
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Conclusions
A large spectrum of legal tasks will be automatized
Intellectual tasks
- COMPLEXITY +
A large part of intellectual tasks can be automatized, using technologies empowering individuals to perform tasks that were previously assigned to a team, ex. e-discovery.
Just like e-banking appeared in finance, empowering customers to perform simple tasks in self service, repetitive tasks will be mapped and automatised, leaving the human component almost completely out.
Custom-made, one-time, non-reusable results with a an emotional component. Those tasks will represent the main bulk of tasks executed by lawyers from 2020 and onwards.
Repetitive tasks
Emotional tasks
AUTOMATIZATION POTENTIAL
HUMAN ADDED-VALUE
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Conclusions
More value for customers, more pressure on professionals
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�CLIENTS
Clearer products, compare before you buy��
More autonomy, the clients can do more by themselves�
More and better access to legal services (ex. chatbots, online arbitration) �
�LAWYERS
Fixed fee products, downwards price pressure��
Need for a clear profile / specialisation�
More opportunities, but do lawyers want to join the gig economy?
Contact
Antoine Verdon
President, Swiss LegalTech Association
antoine.verdon@swisslegaltech.ch
+41 (0) 78 646 38 33
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