The practice of law has evolved significantly over the last decade. Among other forces, the legal industry continues to be disrupted by the influx of new technology, new attorney arrangements (reduced hours, remote law firms, etc.), and the evolving trend of nonlawyers providing legal services traditionally delivered by law firms. Staying on top of these developments is no longer enough to "future proof" your practice or your firm. It is imperative to look forward to avoid falling behind.

Today's Disruptive Forces

One of the most significant changes to the legal industry over the last decade has been the constantly improving advancements in legal technology. Perhaps no category of advancements has been, or will likely continue to be, more important than artificial intelligence-enabled tools. Artificial intelligence (AI), stated very simply, involves machines performing tasks that  historically required human intelligence. There are many subfields or types of AI that solve complex problems historically associated with human intelligence or interacting with the world. The branch of AI most commonly involved in legal technology (currently, at least) is machine learning. There are various subtypes of machine learning, but the methods have the same basic purpose and process—they use data fed into a computer algorithm or system and the data is then used by the algorithm to extra insights, patterns and relationships that can be used to make decisions.

The legal services industry in the United States approaches nearly $300 billion annually. It is therefore not surprising that legal technology companies are increasingly developing tools to gather a larger slice of this pie. Venture capital funding for developing legal technology tools continues to increase. Among other kinds of disruptive AI-powered tools already on the market are:

• Artificial intelligence-enabled document review tools and platforms (which make review of discovery materials quicker and cheaper);
• Artificial intelligence-enabled tools assisting organizations with selecting outside counsel (which promise more data-driven assessments of "fit" between the firm, client and case);
• Artificial intelligence patent search engines (which make patent searching easier and more accurate); and
• Artificial intelligence-powered systems delivering early stage litigation services, such as drafting answers to complaints, discovery requests and responses, and litigation timelines (which decreases client costs and delivers greater efficiencies).

These tools raise interesting (and largely unanswered) practical and ethical issues relating to the scope of the practice of law, AI disclosure obligations to clients, confidentiality issues regarding client data and the necessity of independent judgement by attorneys.

Tomorrow's Disruptive Forces

The pace of development of AI and other advanced technologies is moving at an unprecedented pace. Not surprisingly, future use cases for AI in the legal industry are constantly developing. Already, legal tech companies are developing AI-powered tools that can, purportedly, analyze organizational data and assess potential litigation risk and predict (and possibly prevent) future litigation. If this technology continues to develop and ultimately becomes widely adopted, it would lead to significant changes in the scope and dimensions of both in-house and outside lawyers' work. The work of the judiciary is also at risk of significant future technology-induced disruption. Indeed, in late 2019, China unveiled a "digital justice" system, complete with AI judges, cyber courts and verdicts delivered on apps.

Outside of the AI realm, there are continued efforts to develop blockchain technology for the legal sector. Blockchain technology involves distributed ledgers, wherein data is copied and shared so each participant has a simultaneous copy of all information. From a legal technology perspective, one developing use of blockchain involves "smart contracts," computer programs that control the transfer of digital assets between parties. Smart contracts can be structured with terms like standard contracts, but, through blockchain technology, the contracts automatically execute on obligations through electronic triggers tied to contractual conditions.

Another evolving form of technology predicted to have significant impact on the legal industry is quantum computing. In late 2019, Google researchers reached "quantum supremacy," creating a quantum computer that required only three minutes to perform a task that current computers could not complete in 10,000 years. Quantum computers utilize principles of quantum laws in a way that greatly enhances computing power and speed. We are many years away from widespread adoption of quantum computing, but predictions suggest it could be well developed within the next 10 to 15 years, helping to expand the speed and power of modern computing abilities.

Staying Ahead to Avoid Falling Behind

Readers may be asking, is this relevant to my practice? The short answer is yes, regardless of the area of law. Under the American Bar Association's Model Rule of Professional Conduct 1.1, "to maintain the requisite knowledge and skill, a lawyer should keep abreast of changes in the law and its practice, including the benefits and risks associated with relevant technology, engage in continuing study and education and comply with all continuing legal education requirements to which the lawyer is subject." Thus, from an ethical standpoint, technological competence is a core element of legal competence.

If ethical obligations are not sufficiently compelling, as a practical matter, technological competence is a practical necessity to compete in the future legal market. Small and large organizations expect their outside law firms to not only incorporate legal technology into their service offerings, but also to have lawyers adept with technology and who know how to leverage it to drive value. As data, technology, and alternative service providers gain continued prominence in the legal industry, lawyers need to prepare for a future where being skilled in substantive legal knowledge is only part of the equation. All lawyers should have a basic understanding of disruptive technologies like AI and changes to the practice of law caused by technology. There are many tools available to provide the needed education—from CLEs, to webinars, to publications, even free online videos from large technology companies. Besides enhancing technological competencies, it is also prudent to understand data and data analytics. Seizing upon data and data analytics can increase efficiencies, lower costs and deliver better results for clients.

Jenn Betts is a shareholder and co-chair of the technology practice group at Ogletree, Deakins, Nash, Smoak & Stewart, an international labor and employment law firm with offices in Pittsburgh and Philadelphia. She can be reached at [email protected].