Blog Post

If your legal tech is just about being cheaper, it’ll fail in the coming recession

July 17, 2019

Exigent’s CEO talks to Legal Tech News about how legal tech providers should prepare for the approaching recession and how in-house teams should tackle it.

“A slowdown will hit legal department budgets, and if they haven’t invested in legal technology during a boom, it’s likely they won’t during a slowdown,” said David Holme, CEO of Exigent and Chairmain of recently launched VC fund Bright Minds. He was talking to Legal Tech News reporter Victoria Hudgins, who asked about how the upcoming recession will hit legal tech providers.

In the article “Legal Tech Bets on Compliance, Risk Management to Weather Next Recession” Exigent’s CEO “cautioned that solutions that only provide a service at a reduced price will be affected by the recession.”

“I fear a lot of startups have really not considered the real commercial reality and return people are looking for,” he continued. In the article Holme also highlights that “the flush of investments in legal technology hasn’t translated to higher technology adoption by in-house departments or law firms.”

The reporter highlights that “indeed, less than half of in-house legal departments leverage technology, as innovation in the legal tech tools requires sizable investments. While some corporate counsel say adopting technology is part of preparing for a recession, that only works if one plans ahead.”

She continues: “Still, Holme asserts that data analysis platforms will have the most success during the next recession, particularly because of its wider impact to the corporation’s overall finances and risk.”

“Everyone in the corporate environment is talking about how to better use data,” Holme said. “[There’s] still an opportunity for legal to do that because they do sit on top of this huge amount of data but it hasn’t been used.”

To read the full article please visit: https://www.law.com/legaltechnews/2019/07/16/legal-tech-bets-on-compliance-risk-management-to-weather-next-recession/

Leave a Reply

Your email address will not be published. Required fields are marked *