The legal industry, traditionally cautious with change, is bracing for a transformative year in 2024. Leading legal tech experts have shared their predictions, painting a picture of rapid technological advancements, shifting costs, and a reshaping of the legal landscape.

Emerging Tech Takes Center Stage:

• AI on the Rise: 2024 promises a major leap for AI within legal services. Jake Heller, CEO of Casetext, foresees big players taking the lead, accelerating widespread adoption. As Joey Seeber, CEO of Level Legal, points out, the cost of AI could even see a decline by year's end, further fueling its integration.

• Blockchain Beyond Hype: Tokenization, specifically of assets and securities, is anticipated to see increased institutional adoption, as per Lilya Tessler, Partner at Sidley Austin. This signals a move beyond the theoretical and into practical applications.

• Hyper-Personalization via GenAI: Clients can expect legal experiences tailored to their individual needs thanks to evolving Generative AI capabilities. Jack Newton, CEO of Clio, predicts a surge in such personalized services, marking a shift in client-lawyer dynamics.

Cost Concerns and Consolidation:

• Tech Cost Optimization: While early AI adoption costs remain high, experts like Heller anticipate significant cost reductions as software and hardware optimization progresses. This could democratize access to powerful legal tech tools.

• Consolidation Wave Continues: The market is bracing for further consolidation, with private equity driving the growth of larger players. While Joey Seeber sees potential downsides in declining service levels from these giants, he also identifies opportunities for bespoke providers to fill the gap.

The Business of Law in 2024:

The legal industry, long known for its slow pace of change, is bracing for a transformative year in 2024. Client expectations are soaring, driven by the ease and efficiency of technology in their everyday lives. To meet these demands, legal firms must prioritize a client-centric focus, navigate the burgeoning talent wars, and embrace the AI revolution reshaping the landscape.

Client at the Center Stage

As Dino Eliopulos of Fulcrum GT asserts, "Data-driven vendor selection and strategic partnerships will become crucial differentiators" for firms seeking to deliver exceptional client experiences. Laura Bloxham of Orrick adds, "The best corporate practices won't simply integrate generative AI into their own work streams, but guide their clients on how to integrate it into theirs." Stephanie Corey of UpLevel Ops predicts this AI integration will necessitate "fixed-fee structures for certain services, as the efficiency gained will diminish the profitability of the hourly billing model."

Jackie Donner of LawFlex believes captive ALSPs will be a rising trend, "a good solution to absorb mid-level talent law firms are hemorrhaging, and a way to stop clients migrating to independent ALSPs." Gina Shishima of Norton Rose Fulbright advises, "As clients' demands evolve, it's vital that their business services and support teams adapt and embrace new ways of working."

The War for Talent Heats Up

Ed Estrada of Estrada Legal Consulting predicts, "2024 will see firms upgrade and fine-tune internal processes, attorney efficiency, and client service." This requires attracting and retaining skilled professionals. Murray Joslin of Integreon sees "administrative support becoming far more specialized to practice group disciplines and needs." Hunter Jackson and Michael Shea of McDermott highlight the need for "hallucination-free GenAI offerings" to meet client security and accuracy expectations.

Jerry Levine of ContractPodAi emphasizes, "This is one of those turning points in the practice of law where we'll see adaptation or failure... I think we'll see continued pressure from clients for lawyers to adopt innovative, secure, and ethical technologies." Anthony V. Lupo of ArentFox Schiff warns, "Firms that don't or are slow on the AI uptake will lose market share and clients... Traditional leverage models will substantially change."

AI Reshapes the Game

Jack Newton of Clio predicts, "Next year and in the future, legal tech will witness a surge in hyper-personalized services, thanks to AI's evolving capabilities." Matt Spencer of Suited sees AI "slowly implemented to reduce lower-level, research-oriented work," impacting traditional law firm structures. Bill Mariano of Lighthouse adds, "Adoption of GenAI will be quicker than any other tech we've seen...Lawyers that are unwilling to leverage technology will be left behind."

However, not all are rushing headlong into the AI embrace. Ed Macnamara of ArentFox Schiff cautions, "The question for 2024 remains whether GenAI will extend its influence beyond established platforms to make a substantial impact on the business of law...Forward-thinking firms might use it to critically evaluate existing processes, but the majority will likely adopt a more cautious approach." Christopher Ryan of Harbor sees "more exploration of GenAI and advanced analytics use cases," with firms needing to figure out "investments and partnerships."

Crypto Craze Revisited

The rollercoaster ride of the crypto-verse is expected to continue in 2024. Mike Burshteyn of Morrison Foerster predicts an explosion of litigation arising from the fallout of the bear market, including disputes over tokens, DAO governance, and liquidity partnerships. Regulatory pressure will remain hot, with the SEC and CFTC potentially issuing groundbreaking decisions that may shape the industry's future. However, Cat Casey of Reveal believes the intersection of Generative AI and the Metaverse could reignite web3, bringing more realistic avatars and virtual assets to the forefront.

Melissa Bender, Partner in the Asset Management Practice and Head of the Cryptocurrency & Blockchain Group, Ropes & Gray, adds, “Looking ahead to 2024, many in the industry are hopeful that the growing regulatory clarity in jurisdictions such as the EU, Singapore and UAE will foster growth. Sophisticated financial institutions remain committed to developing blockchain technologies for purposes of facilitating trading and settlement activities, although this is long term build. Perhaps the brightest ray of hope for crypto in the US in the upcoming year is the increasing optimism that the SEC will approve a spot bitcoin ETF and we continue to see major institutional players and specialized crypto firms filing and updating their applications.”

Web3 and Beyond

Technology enthusiasts like Phil Harris expect a revival of technologies discredited during the crypto winter, such as blockchain and NFTs, due to their enhanced security and ubiquity. Wendell Jisa of Reveal anticipates more mergers and acquisitions, particularly involving Legal Service Providers and private equity firms aiming to capitalize on legal AI's success. Damir Kahvedzic of ProSearch warns of challenges surrounding the collection and review of data from Apple's upcoming Vision Pro spatial computer. Eleanor Lightbody of Luminance predicts a boom in AI startups and the rise of "AI insurance" for mitigating bias and potential risks.

Data and Decision-Making

Olga V. Mack of CodeX sees consent management evolving beyond compliance to become a central pillar in legal data utilization, potentially involving blockchain for authentication and security. Steve McNew of FTI Technology envisions disruptive business models and customer engagement strategies enabled by web3, NFTs, and the Metaverse. Mat Mendel of Innovative Computing Systems highlights the integration of Microsoft's M365 ecosystem with advanced AI tools like Copilot and Intune. Jake Routhier of Orrick Herrington & Sutcliffe predicts further diversification of software distribution channels, with platforms like Discord and TikTok gaining traction for reaching younger audiences.

Legal tech in 2024 will be a fascinating landscape to navigate. From AI's growing influence to the evolving crypto landscape and the rise of web3, there will be no shortage of developments to keep an eye on. The winners will be those who can embrace change, adapt to new technologies, and prioritize client-centricity in an increasingly dynamic legal environment.