Northern Ireland law firms believe digitalisation will influence their practices the most in the coming years, according to a new survey.
Statista surveyed legal professionals to compile a list of the Northern Ireland’s Best Law Firms for 2022, and asked them a range a questions regarding their past experiences and future outlook.
Respondents were asked what developments will influence their firms in future, and a majority (66.2%) said digitalisation.
Digitalisation is the use of digital technology to improve business models and boost growth. Firms said that many of the court processes have historically been slowed down by to the use of paper and inefficiencies leading to rising costs and delays.
They also reported that digitalisation allows them to work remotely more often and cuts down on the requirement for administrative staff.
Post-pandemic, respondents said digitalisation is one area which will impact on all legal practices.
And the pandemic has separated out those law firms that can work seamlessly from home and those who need to be in the office.
Law firms warned that those who cannot innovate “will be left behind”.
The second most common development firms said would influence them in the coming years was the shortage of skilled employees available to recruit. Some 27.3% cited this as a worrying trend for the future.
Respondents said this was because of the competition in the market, with shortages creating pressure on salary rates and difficulties competing with the salaries offered by bigger firms for in-demand sectors.
Firms said there is an increasing number of large international firms seeing the benefits of operating from Northern Ireland and there is rising demand for skilled employees, with a challenge in also being able to retain talent.
One law firm said they work in a very specialised area and candidates with relevant experience and/or interest in this area are in short supply, in addition to a lack of focused training in specialised areas at undergraduate and pre-qualification level.
A total of 9.1% of lawyers who responded to the question also said the qualifications of current employees was also something that will influence them going forward.
Some 18.2% of respondents said developments in legislation with influence their firms the most in the coming years.
Firms said changing legislation requires advice and increased regulation decreases the viability of their businesses.
One law firm reported that there is a “significant assault” on critical human rights legislation and the boundaries of administrative law.
Globilisation was cited an influence in the coming years for 14.3% of respondents, who commented that more and more Northern Ireland firms are looking beyond NI and the UK for work.
Some 9.1% of respondents cited other developments that will influence their firms the most in the coming years. These include the culture, character, chemistry and competence of the firms and lawyers involved and potential cuts to legal aid, which many firms rely on as a significant revenue stream.
Another development raised was the shrinking personal indemnity (PI) market. Personal indemnity insurance covers legal costs and expenses incurred in your defence if you are alleged to have provided inadequate advice or services that cause your client to lose money. Insurance premiums for PI are on the rise due to increasing numbers of insurance companies pulling out of this market, among other problems.
Firms also said the wider economic outlook and the commodisation of workstreams are developments that will influence them the most in the coming years.
Meanwhile, the Law Society of Northern Ireland, the professional body of the solicitor profession in Northern Ireland, will be celebrating its centenary in 2022.
The society has a membership of almost 6,000 solicitors including 3,000 solicitors who work in private practice, the public sector, in businesses and in the voluntary sector throughout Northern Ireland.
And it will also be at the heart of the changes which the profession will face in future.
It says it’s continuing to invest in the future of the profession including opening a new state of the art meeting space in the heart of Belfast’s Legal Quarter.
The Law Society describes the opening of the Meeting Space as a major investment.
The society says the space is ideally located for members of the legal profession given its close proximity to the courts. And it hopes that the space can also be used to facilitate Alternative Dispute Resolution.
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