Practice technology
How to choose a legal tech company
It’s important not to simply look for a legal technology company that offers one-size-fits-all solutions, says Kenneth “Tray” Gober, managing partner of Lee, Gober & Reyna in Texas. It’s crucial that any proposed technology solution can be tailored to specific needs, Gober says. (Image from Shutterstock)
At the ABA Techshow in February, legal technology companies crowded into the Hyatt Regency Chicago, jostling for space to showcase their products in a fast-growing market.
In fact, according to a study by technology market analyst Gartner, the value of legal tech could almost double, from $25.6 billion in 2022 to $50 billion in 2027.
While it’s clear that legal tech is necessary, determining which legal tech company is the best fit for your firm isn’t quite as simple. Some of the methods the tech show vendors used to try and attract firms to their side included small gifts for anyone who walked past their booths: a stress ball, a rubber duck with their company’s name on it, and in one case, a few lottery tickets.
While the amount of freebies is a nice reward, it’s probably not the best way to select your legal tech team. Instead, Kristopher Kaufman, a senior legal tech customer success manager based in Arizona who has managed large corporate accounts and previously worked as a paralegal, suggests that companies should first think about the solutions the technology vendors offer.
For example, Kaufman says: Is your staff struggling to update case lists and manage deadlines in bulk? Is your billing department overwhelmed with manual accounts receivable processes? How long does it take on average to close a case, and which steps take the longest? Once you’ve identified your firm’s most pressing needs, you can focus on legal tech companies that specialize in those services.
It’s important not to simply look for a legal tech company that offers a one-size-fits-all solution, says Kenneth “Tray” Gober, managing partner of Lee, Gober & Reyna in Texas. What’s crucial is that any proposed tech solution can be tailored to specific needs, says Gober.
Jones Foster, a commercial and private client law firm in West Palm Beach, Florida, primarily uses the software company TCDI for its e-discovery and cybersecurity services.
Robert W. Wilkins, co-chair of the litigation department at Jones Foster and co-chair of the Subcommittee on E-Discovery and the Subcommittee on Data Security of the Committee on Commercial and Economic Litigation of the ABA’s Office of the Attorney General, says he came to the decision after careful consideration.
He suggests going with a provider that is more expensive per gigabyte (in electronic discovery, technology companies typically charge per gigabyte of stored data) but has more capabilities. In the long run, he says, they are more cost-effective because they have greater capabilities. Wilkins focuses on the cost, experience level and range of capabilities of the legal tech companies, and also makes sure they use generative artificial intelligence.
And while larger companies can usually afford in-house technology firms to help with confidentiality, it makes more sense for smaller companies to hire outside contractors, Wilkins says. With the latter, they need to focus on technology privacy and make sure they’re on the cutting edge of privacy and cybersecurity innovations, as well as insurance coverage and response times.
When it comes to selecting a specific legal tech company, Wilkins also prefers vendors that have experience with managed reviews to help create e-discovery searches.
Wilkins adds that forensic investigations are critical in legal technology and that the vendor should also have someone who can testify in court if there is a problem with the data.
“You can find a great provider, but the genius behind the algorithms doesn’t know how to speak and testify,” he says. “You need the whole package. The fewer people touching my data, the better.”
The basic technology package
Lauren Davidson-Ibarra, attorney, co-founder and CEO of Los Angeles-based Astral Law Group, says she opted for the simplest package for her two-person firm, choosing the legal research platform LexisNexis.
She made this decision because she realized that basic Internet services (e.g. Google) don’t help much when researching state and federal case law. She considered Lexis and Westlaw, but chose Lexis because it was less expensive at a total of $250 per month.
“Price aside, Lexis has really great practice guides for all areas of law and great templates. You can select any practice area you want and see all types of filings from pre-trial to trial to verdict and execution of judgment,” says Davidson-Ibarra.
In addition to Lexis, her firm also pays $20 per month for ChatGPT-4 and ChatGPT-4o. Davidson-Ibarra had originally considered hiring a remote assistant or part-time paralegal to handle the firm’s administrative tasks, but ChatGPT-4 does everything the firm asks except answer the calls.
Larger companies tend to use a greater variety of technologies.
Chambord Benton-Hayes, founder and principal of Benton Employment Law in Oakland, California, says she and most of her staff come from large law firms and therefore have a lot of experience with legal tech. For case management, they use MyCase, a software commonly used on the plaintiff side. They also use AI for limited evidence and are considering using AI technology to assist with billing.
When selecting companies, reliability and efficiency are key, says Benton-Hayes. One of the companies that originally hired her firm deleted an important stored document that could not be recovered.
“We look for companies that respond quickly to issues and have a good track record of customer support,” she says. “Privacy is also critical. When it comes to using AI technology, we never share confidential or sensitive information.”
Final steps
Consider how technology can help you reduce costs, recommends Kaufman. Does the new solution you’re considering replace or integrate with other software? Can it help reduce your company’s headcount, high payment processing fees, or even warehouse and office space?
Make sure you also ask for references from existing customers of other companies.
“While a good case study or well-crafted presentation can be appealing, I can think of several examples where this was not the case in practice or the approach was rigid and did not integrate well with our systems. This was a waste of time and resources and hindered case processing,” says Jason E. Taylor, founder of the Law Offices of Jason E. Taylor with offices in North Carolina and South Carolina.
Companies can eliminate this risk by getting multiple references to confirm the value of the cases, Taylor says. But keep in mind that what works for one company may not work as well for another.
Before he finally signs the contract, Taylor asks about hidden costs, such as training and ongoing support.
