One major impact of the technological revolution for legal teams is the digitization of data and documents, which increases the amount of data available to the legal department. This data facilitates decision-making when transformed into actionable insights, reports, and analyses. However, for legal departments to fully benefit, it requires efficient corporate governance tools such as a robust matter management solution or specialized case management software.
When to begin? In this first article of two, we will focus on showing how legal data analytics tools (whether specific or tools that allow data analytics) address challenges faced by in-house counsel. To begin with we will cover the main challenges for legal teams, followed by the benefits of a matter management solution to overcome them.
Data challenges for legal teams
As volumes of data increase (and budgets tighten), legal departments and in-house counsel are facing challenges in their day-to-day work. Not only does their overall workload increase, but handling a growing volume of data from multiple sources makes it harder to stay up to date and keep an overview of matters, contracts, cases, and other practice areas. Let’s have a look at the main data-related challenges legal departments are facing.
1. Increased Workload
Legal operations teams already have an impressive workload. The growing volume of data can make it right-out overwhelming. There has never been more data available to legal teams than today. That’s a good thing, of course, as it means that legal counsels are well informed.
However, handling this amount of information can be tricky, because of the sheer volume, but also because it comes from numerous sources that need to be monitored and tracked. Moreover, the data needs to comply with ever-changing regulations, adding another element to the uptick of workload, especially within global organizations that may be submitted to several national or regional sets of regulations.
And that’s only the internal part of the legal departments’ work. In-house counsel work for all other departments within an organization, receiving and addressing requests from different stakeholders. Sales might need to change a clause in a sales contract, the financial department wants a detailed overview of legal spend that means more data to be handled, from different sources, passing through multiple channels.
Did you know? According to the 2024 ACC Chief Legal Officers Survey 59% of CLOs report an increase in their workload.
2. Multiple Datasources
The increasing volume of data, coupled with a growing number of communication channels, information sources, and tools, consequently makes data management significantly more complex. For instance, data is stored, retrieved, and sent via numerous online channels, including collaboration platforms, file-sharing tools, and email, as well as traditional offline ones.
Did you know? Legal departments use an average of six different tech tools for various aspects of their work. This is what the ACC 2024 Law Department Management Benchmarking Report shows.
As a result, working across multiple channels and platforms makes it not only difficult to handle the data but also challenging to analyze data effectively. Raw information often needs to be classified, filed, or annotated so that legal teams can find it at the right time and leverage it promptly. Using legal analytics and data visualization can help identify patterns and streamline this process.
Moreover, switching from one source to another is both complicated and time-consuming, which can even lead to the loss of important data or case outcomes.
3. Limited view of reports and analytics
Legal departments are increasingly asked to report and operate like other business functions. There has never been so much data available and it’s a valuable resource and a powerful decision-making tool once you transform it into insights and integrate it into reports and analyses.
Data analytics can help obtain a clear overview of the department’s activities and identify optimization opportunities for the department and the organization as a whole. Tools that leverage predictive analytics and machine learning can predictive data analytics on legal spend, case strategy, or case outcomes.
But creating this type of document can be complicated, not least for the reasons mentioned above. Where do legal counsel find the time, and does the legal department have the necessary resources to effectively carry out the required reporting and analysis?
Did you know? Data Analytics is one of the top digitization priorities for legal departments (45%) according to the KPMG 2021 Global Legal Department Benchmarking Survey.
4. Compliance and security risks
Scattered sources and lack of visibility put your data at risk. How can legal departments ensure data security and integrity when there is no central, secure repository?
Moreover, at a time of constantly evolving legal requirements and regulations, how can in-house counsel ensure compliance of their documents? Data-driven decisions based on comprehensive data sets are crucial to avoid non-compliance, contractual breaches, and fines.
Legal professionals also face challenges in managing deadlines, renewal dates, and obligations — areas where case management software can assist significantly.
How efficient solutions help address legal data analytics challenges and ops
The solution to your challenges lies in opting for tools that enable legal data analytics management and visualization.
There are many tools available, but not all are tailored to the legal profession. That’s where a proper matter management solution comes in handy for legal teams. Solutions that combine case management, billing, and data-driven insights — whether integrated with contract management or standalone — offer features such as real-time reports, dashboards, or predictive insights.
Here are some advantages you can take from using a matter management solution:
Optimized document management
A comprehensive matter management tool offers advanced document management features.
By creating a centralized repository for your data, you can:
Insights for informed decision making with legal data analytics
You can leverage your data to gain key insights into your activity, helping your department and the entire organization to take data-driven decisions.
With the right tools, you can use your information to:
94% of business leaders feel their organization should be getting more value out of its data, a recent Salesforce survey found Data Management and Analytics:
Improved processes
Digital data management helps streamline processes thanks to the automation of mundane tasks and the continuous evaluation of outcomes.
Among the advantages are:
Expanding the Role of Legal Analytics in Firm Growth and Client Services
Legal industry trends show that law firms adopting a data-driven approach achieve greater growth and competitive advantage. Using legal analytics tools and modern technology, firms build a deeper understanding of client needs, optimize services, and strengthen their position across every practice area. Whether focusing on litigation, estate planning, family law, or intellectual property, analyzing vast amounts of firm data helps attorneys discover new ways to deliver better outcomes for clients.
Modern law firm marketing relies heavily on insights from historical data and data analysis. Firms can now identify potential new clients, tailor services more precisely, and improve planning for future demands. Data also enables smarter tracking of billable hours, better financial management, and efficient risk management, all while helping to save time and resources.
Integrating analytics software and legal tech into daily workflows empowers attorneys to provide faster, more accurate legal services, and strengthens collaboration within the firm. Investing in training programs ensures that lawyers stay ahead, mastering the latest legal analytics techniques essential for tomorrow’s success.
Achieving sustainable growth without a strong data strategy becomes increasingly difficult. Firms leveraging data-driven insights will deliver better results, give better advice, and enhance firm performance while securing their place in the future of legal practice.
Conclusion
Digitization has transformed the current reality for internal legal teams, making data-driven practices essential for achieving their goal of delivering faster, smarter, and more strategic legal support. Leveraging large amounts of data through matter management and legal analytics tools empowers legal departments to understand risks, manage compliance, and enhance collaboration across the company.
Efficient legal operations now depend heavily on the ability to store and analyze information accurately, ensuring that sensitive personal information remains secure and that reporting aligns with evolving regulatory terms. Modern tools can also centralize legal documents, support better tracking of actions and deadlines, and improve the experience of stakeholders relying on the legal team.
While internal teams are the center of innovation, law firms increasingly adopt similar strategies, using law firm data, case studies, and practice management tools to offer valuable insights to their clients. Firms that invest in legal technology and analytics software strengthen their firm’s performance and deliver better outcomes in areas like litigation, immigration law, or due diligence.
Going forward, internal teams and external providers alike must focus on using legal analytics not just to react, but to predict, plan, and lead. Programs for continuous training and the smart use of legal software will be key in mastering the future of legal operations.
Ultimately, choosing the right matter management solution and embracing the power of legal analytics will help legal teams and firms alike become more efficient, proactive, and ready to face the challenges ahead.
Stay tuned for part two, as we dive into the most essential features and how to ensure you are making the smart choice.
Learn more about DiliTrust’s Matter Management solution.
