Kirsten Medder The Real estate forum, hosted by Legatics, delved into the impact of legal technology on real estate transactions. The discussions covered challenges such as selecting the right technology and how these innovations affect clients, while also highlighting the opportunities they present. Featuring both panel and group discussions, the event showcased how legaltech can transform and streamline processes, driving greater efficiency in real estate. These insights emphasize the evolving role of technology in modernizing the legal aspects of real estate transactions.
Panel discussion
The panel discussion illustrated both the promise and growing pains of legal tech adoption, with a need for continued work to streamline processes as the industry evolves.
The panel expressed a positive outlook for the 2024 real estate market, anticipating growth across various sectors following a slower period, though external factors such as geopolitical events may alter the trajectory. Legaltech tools were seen as vital for improving efficiency, quality, and early involvement in deals, with features like automation and data analytics. However, these tools must integrate seamlessly and be used consistently to realize their full potential. Challenges include evolving AI capabilities, security issues, and maintaining fundamental legal skills.
Emerging technologies, such as large language models, offer both risks and significant opportunities for innovation, competitive advantages, and enhanced client value. Ongoing efforts are required to streamline processes and address platform confusion within the evolving real estate landscape.
Use of technology
Summary of key points from the discussion about using legal technology:
- Live collaboration platforms improve the drafting process through real-time updates and accountability between parties
- Automation tools have significantly increased efficiency, with one firm citing a 10-15% gain through their transaction management system
- AI is helping firms get involved in deals earlier by quickly analysing data and presenting insights to client pitches
- Emerging technologies like large language models present massive potential but also risks that need mitigation
- Real estate specific tools are making more progress than generic products at addressing industry needs
- The benefits of tools are best realized when integrated to ensure seamless data transfer and accessibility
- Challenges include inconsistent tool usage, changing AI capabilities over time, and potential platform reliability issues
- Continued training is needed as automation takes over routine tasks to maintain skills like deal structuring
Client experience
Summary of key points about the client experience discussed:
- Clients are increasingly expecting firms to adopt legaltech and leverage capabilities like speed and analytics
- However, security restrictions from some larger clients pose barriers to full utilisation of tools on certain matters
- Firms need to work collectively to get legaltech approved to help meet rising client demands
- Early AI adoption allows firms to get involved in deals sooner by quickly analyzing data and presenting insights, adding value when pitching to clients
- Collaboration platforms provide real-time visibility that enhances the client experience through improved delivery and transparency
- Automation has the potential to free up lawyer time for more strategic work, resulting in a better client product and experience overall
- Errors found through diligence automation demonstrate tangible value and benefits to clients over traditional methods
Group discussions
The group roundtable discussions covered the challenges of navigating tool integration and adoption, including selecting suitable tools, overcoming user resistance, and more.
Integration & adoption
Summary of key points on integration and adoption:
- Mid-level associates often resist adopting new tools due to familiarity with previous methods, with a tendency to focus on minor obstacles rather than overarching deficiencies
- The desire for integration and open connectivity is evident, but it comes with a risk of overcomplication due to the variety of tools involved, potentially amplifying existing risks
- The challenge lies in the lack of guidance on selecting suitable tools
- User-friendly tools are more favored, while those with steep learning curves face resistance
Opportunities and education
Summary of key points on opportunities and education:
- Legaltech presents an avenue for reclaiming valuable time for other pursuits, whether it entails acquiring new skills or dedicating more hours to billable work
- Within law firms, inclusion and engagement are paramount in the innovation journey
- Rather than marginalising individuals from technological advancements, it’s crucial to involve them in meaningful discourse and decision-making processes
Speed, efficiency and cost
Summary of key points on speed, efficiency & cost:
- Interconnectivity among various technologies is vital, particularly in environments saturated with tools and platforms.
- Establishing a centralised hub for integration and training becomes imperative in navigating this complexity.
- As efficiencies are gained through technology, lawyers may end up doing less time recording for clients. However, this reduces revenue at the same time as firms take on additional costs to pay for legal tech subscriptions and solutions.
- It is important find ways for firms to recoup their investment costs in legal tech while still providing value to clients through more efficient services.
Over reliance on technology
Summary of key points on overreliance on technology:
- The allure of AI and other advanced systems notwithstanding, maintaining appropriate checks and balances remains imperative.
- The dangers of excessive reliance on technology are underscored, emphasising the need for human oversight to mitigate unintended consequences and preserve control over critical processes and decisions.
Real estate finance forum 2025
The annual Legatics Real estate forum will be held in April 2025, in London. To attend the forum, sign up to save your spot.
