Legal and Compliance Technologies to Focus on Post COVID

In BICSI Blog, BICSI Bytes, Featured, Newsby info@bicsi.com.au

COVID-19 has accelerated the push toward digital business-transformation for most businesses and, according to Gartner, legal and compliance leaders are under pressure to anticipate both the potential improvements and possible risks that come with new legal technology innovations.

To address this challenge, the Gartner Hype Cycle for Legal and Compliance Technologies, 2020 listed 31 must-watch legal technologies to allow legal and compliance leaders to identify innovations that will allow them to act faster. They can use this information for internal planning and prioritisation of emerging innovations.

“Legal and compliance leaders must collaborate with other stakeholders to garner support for organisation wide and function wide investments in technology,” said Zack Hutto, Gartner Legal and Compliance practice director. “They must address complex business demand by investing in technologies and practices to better anticipate, identify and manage risks, while seeking out opportunities to contribute to growth.”

Enterprise legal management (ELM), subject rights requests, predictive analytics, and robotic process automation (RPA) are likely to be most beneficial for the majority of legal and compliance organisations within a few years. They are also likely to help with the increased need for cost optimization and unplanned legal work arising from the COVID-19 pandemic.

ELM

This is a multifaceted market where several vendors are trying to consolidate many of the technologies on this year’s Hype Cycle into unified platforms and suites to streamline the many aspects of corporate governance.

“Just as enterprise resource planning (ERP) overhauled finance, there is promise for a foundational system of record to improve in-house legal operations and workflows,” said Hutto. “Legal leaders should take a lesson from ERP’s evolution: ‘monolithic’ IT systems tend to lack flexibility and can quickly become an anchor not a sail.”

Legal application leaders and general counsel must begin with their desired business outcomes, and only then find a technology that can help deliver those outcomes.

Subject Rights Requests (SRRs)

The demand for SRRs is growing along with the number of regulations that enshrine a data subject’s right to access their data and request amendment or deletion.

Many organisations are funnelling their subject access requests (SARs) through internal legal counsel to limit the potential exposure to liability. According to the latest Gartner Security and Risk Survey, this costs on average US$1,406 per SAR.

In the face of rising request volumes and significant costs, there is great potential for legal and compliance leaders to make substantial savings and free up time by using technology to automate part, if not most, of the SRR workflow.

Predictive Analytics

This is a well-established technology and the market is mature, so it can be relatively simple to use ‘out-of-the-box’. Typically, the technology can examine data or content to answer the question: ‘What is likely to happen if…?’

“Adoption of this technology in legal and compliance is typically less mature than other business functions,” said Hutto. “This likely means untapped use cases where existing solutions could be used in the legal and compliance context to offer some real benefits. While analytics platforms may make data analysis more ‘turnkey’ extracting real insights may be more elusive. Legal and compliance leaders still should consider and improve the usefulness of their data, the capabilities of their teams, and the attainability of data in various existing systems.”

RPA

RPA’s potential to streamline workflows for repetitive, rule-based tasks is already well-established in other business functions. Typically, RPA is best suited to systems with a standardised — often legacy — user interfaces for which scripts can be written.

“Where legal departments already use these types of systems it is likely that RPA can drive higher efficiency,” said Hutto. “However, not all legal departments use such systems. If not, it could make sense to take a longer view and consider investing in systems that have automation functionality built in.”