Law firms pitching for corporate legal work are starting to notice that the use of technology has become a priority in their requests for proposals (RFPs). This spotlight on legal tech, combined with in-house belt-tightening, means firms need to do more than just “check the box” when making their pitch to win or retain work.
This year, 48 percent of corporate legal departments plan to move work, according to Thomson Reuters’ State of the Corporate Law Department report. And a majority of respondents say they will evaluate the “use of appropriate technologies” as part of their selection process for the right law firm:
- One in five (20 percent) say it’s a mandatory requirement that firms illustrate their use of legal tech
- Half (52 percent) consider it as part of their process
Law firms are also becoming more aware of the importance of legal tech as firms seek more insights into how their lawyers are using software to serve clients. A 2023 Wolters Kluwer survey shows nearly half of law firms (46 percent) say legal tech is one of their top needs to meet client demands for improved productivity and efficiency.
So, what’s the best way for law firms to showcase how their use of legal tech benefits clients in pitches and proposals? Let’s look at some common challenges facing clients that legal tech can alleviate and strategies to differentiate your technology from competitors.
Zero In on Budgets and Savings
Clients aren’t interested in lawyers using legal tech for vanity — they expect technology to result in cost savings. Is your firm tracking the number of hours saved on tasks through technology compared to legacy methods? A side-by-side comparison of billable hours spent on matters relevant to the client, when using your technology versus less effective approaches, could be a powerful and persuasive illustration of savings.
If your firm is pitching for litigation work, data extracted from modern legal case management software can offer clients cost certainty and information to make informed decisions, adding value. Software can track the number of hours worked by different timekeepers across the stages of the litigation lifecycle. If your firm uses analytics, you can identify matters that are likely to reach trial and go to a jury verdict and others that could settle early. Your pitch should include the types of data your firm tracks, or has access to, and analyzes. Then, highlight why this information is valuable to the client’s situation.
Highlight Added Value
Law firms should remember they aren’t just competing against other firms. Alternative legal service providers can offer clients cost-effective services, including discovery and contract drafting. Understanding the playing field, firms should tailor their pitch to illustrate how their use of legal tech can give the client a greater overall value.
For example, because your firm is able to eliminate hours of tedious, manual, and repetitive work through automation, your budget provides the client more time to discuss matters and ask questions with senior attorneys. That scenario is more valuable to the client than just saving money on a portion of their litigation timeline.
Technology can also give the client greater value through streamlined communication, keeping the number of tools you ask them to interact with to a minimum. In your pitch, show a brief overview of how easy it is for the client to communicate, share information, and get status updates using your legal technology.
For example, in a single case management solution, clients and the law firm can centralize collaboration and integrate with other tools while portals give the client on-demand access to status updates, deadlines, and budget information. A quick walkthrough of your system can give the client a big-picture view and give them confidence that the information they need will be at their fingertips.
Be Upfront About AI
About one in seven in-house teams (14 percent) said “transparency in AI use” was mandatory in their law firm selection process, according to the Thomson Reuters survey. And a recent LexisNexis survey found 80 percent of corporate legal executives expected outside counsel bills to be reduced as a result of the use of AI.
If your prospective client is comfortable with the use of AI, you’ll want to be clear about how your firm uses it to achieve efficiencies and what steps you’re taking to keep data secure and prevent infamous “hallucinations” such as made-up case citations.
Additionally, don’t forget to highlight how AI is integrated into the legal tech your firm already uses for even greater efficiency. For example, when AI is added to case management software, it can generate analysis and identify connections between characters, documents, and transcripts in seconds. And in discovery, AI can efficiently organize, categorize, and analyze hundreds of gigabytes of data, suggesting relevant documents for lawyers.
Again, this type of automation can eliminate hours of repetitive manual work, not only leading to client cost savings, but greater value to the client as these hours can be devoted to higher-level analysis by senior attorneys.
Secure the Win
Wrap up your proposal by reinforcing your data privacy standards and your firm’s policies for using AI and other legal technology ethically, including steps you take to ensure accuracy, auditability, and security. Share your past legal tech successes and client testimonials. And above all, drive home the specifics on how your firm’s use of specific technologies leads to cost savings throughout the lifecycle of the client’s matter, eliminates communication pain points, and gives the client overall budget transparency.
Jill Goldstein is a senior account executive at Opus 2, a leading legal software and services provider. Before joining Opus 2 in 2021, she served a number of technology clients where she provided technology solutions to Fortune 1000 companies, law firms, accounting firms and consulting firms.
