A recent report from the Law Society has called on the Welsh government to provide financial support for small and medium-sized welsh law firms to adopt new legal technologies. This comes as a response to the challenges these firms face in keeping pace with larger counterparts when it comes to tech investments, particularly in artificial intelligence (AI) and other productivity-boosting solutions.
The report highlights the importance of a collaborative effort between the Welsh and UK governments to introduce grant schemes that can ease the financial burden of tech adoption for smaller firms. This move could help modernise the legal sector in Wales, allowing it to compete more effectively on a national and international level.
Struggles Facing Welsh SME Law Firms
According to the Law Society, many small and medium-sized law firms in Wales lack the resources to invest in cutting-edge legal technologies, unlike their larger counterparts. These firms face significant challenges in identifying the right technologies that could enhance their operations. Choosing the wrong tools can result in substantial costs, making tech investment a risky endeavour for firms with limited budgets.
The report urges the Welsh government to create grant schemes similar to those found in other countries, such as Singapore’s Tech-celerate for Law programme. Singapore’s model provides law firms with up to 80% funding for technology investments, which has greatly benefited their legal sector. By following such examples, Wales could create a more competitive and technologically advanced legal landscape.
“Welsh SME law firms need financial support to adopt lawtech solutions,” the report states. “The Welsh government, ideally in collaboration with the UK government, should look towards developing a grant scheme to support these firms in the adoption of lawtech.
The Role of AI & Advanced Technology in Welsh Law Firms
Artificial intelligence (AI) is playing a transformative role in the legal sector, but Welsh firms will require significant support to fully realise its potential. The report stresses that the Welsh government must work in partnership with tech companies to help firms navigate the complexities of AI procurement and implementation.
“Firms must be supported by the Welsh government and in partnership with tech firms in both the procurement and implementation of AI,” researchers wrote, adding that firms must understand both the potential and risks involved as AI technology evolves.
Additionally, the report recommends a joint review by the UK and Welsh governments into the current and future utilisation of emerging technologies within Wales’ legal system. This review would assess the effectiveness of existing systems while identifying new opportunities for technological advancement.
How Advanced Technology is Transforming Law Firms
The rise in legal technology is providing vital solutions to daily challenges while also offering opportunities to streamline other aspects. Client onboarding in particular can take time but legal technology is elevating this process while ensuring due diligence checks like ID checks and source of funds checks are compliant with the regulatory guidelines of the Solicitors Regulation Authority for firms in England and Wales and the Law Society of Scotland for Scottish law firms.
Advanced legal technology is elevating law firms and crucially enabling them to streamline their processes, enhance due diligence protocols and create efficient workflows meaning they can expand their services, onboard more clients and increase company revenue. Verify 365 is playing its part in helping law firms reach these targets. Our comprehensive client onboarding technology enables law firms to complete a variety of different checks including ID verifications, address checks, source of funds and KYB checks while meeting the regulatory framework set by the Solicitors Regulation Authority.
Future of Justice in Wales: Devolution and Development
Looking towards the future, the report cautiously welcomed the possibility of devolving justice functions to Wales. However, it stressed that the Welsh government must first lay the groundwork to ensure the legal sector is ready for such a significant transition. Jonathan Davies, head of the Law Society in Wales, advocated for the establishment of a dedicated minister for justice to oversee the sector’s development.
“A minister for justice would create a much-needed budget line for the sector,” Davies stated. “Evolution, not revolution, will ensure that the sector is in the best place before the Welsh government takes the reins”.
The Law Society’s report lays out a comprehensive roadmap for modernising the legal sector in Wales, with a strong focus on technology adoption, talent retention, and ensuring equal access to justice across the country. By providing grants for SME law firms to invest in legal technology and addressing the growing issue of legal deserts, the Welsh government has the opportunity to transform the legal landscape and secure a sustainable future for the sector. However, achieving these goals will require collaborative efforts between the Welsh and UK governments, alongside the legal and tech industries.
