Publication

The new challenges of the legal sector in the region

21 2019 March
INCAE Executive Education

Like any other, the legal sector is undergoing changes due to the impact of new ways of doing business. Blockchain, big data and artificial intelligence, among other new technological tools, have been incorporated into the business email of the firms that have seen the need to upgrade to be able to fit into industry 4.0

Along with the above, they are facing the demands of generations of collaborators millennials y centennials, who are not satisfied with a good check at the end of the month, but are looking for other benefits such as flexible hours, social impact projects and greener environments, among other situations.

How are large law firms preparing to face this situation? José Antonio Muñoz, founder and regional partner of Dentons Muñoz, points out that human talent is the most valuable asset of a law firm. 

For his part, Hernán Pacheco, lead partner of EY Law, maintains that law firms have to accommodate the expectations of the new generations. “We are being very unattractive to millennials and we will not be able to retain talent. Companies in this industry invest a lot of time and money in the knowledge of a collaborator, which is why rotations are very expensive and must be the exception ”, he says.

What will be the impact of the new technologies? The legal industry was one of the least impacted by technological changes, a situation that is beginning to change according to Luis Castro, a partner at BLP.

In recent years tools have been adopted to make legal work more diligent and thereby save money. For example, certain markets have ventured into sharing all litigation information digitally, which was one of the most costly situations in the process. 

"We are clear that the industry is going to change more in the next 10 years than in the last 100," says Castro. 

For his part, Diego Martín, partner of the Consortium, points out that legal professionals must also be adapted to a customer who is more technology-supported, therefore it is essential for the success of the business have a complete website, active social networks, high value-added software within the companies and an app so that customers can be checking the status of their processes at any time and in any place. 

Changing your mindset is another of the great challenges, lawyers should not be just recipients of clients' needs

“We have to abandon passive strategies and be more active We need a radical change and to end the vision of the professional who waits at the desk, we have to go on the market. New Attorneys Must Become Industry Specialists get to know the clients' business better and not stay within the norms of traditional service. They must become more comprehensive advisers ”, considers Pacheco.

Another area of ​​opportunity is regulatory affairs, especially mergers and acquisitions. The same occurs with Litigation, especially against the State, in matters such as competition, the environment and the tax area.

In summary, specialists recognize that the legal industry benefits with the advances of the modern era because every major disruption is accompanied by regulation.
 

Excerpt from the article published in Summa magazine, number 297.

Subscribe to our blog