September 16, 2022

Legal Document Automation - A Guide for Law Firms!

Law is a paper-intensive industry that calls for dire changes for higher productivity. One such change could be bringing in automation for legal document processing. Want to learn more on the topic…read ahead!

If automation for law firms brings to mind images of robots and machines replacing humans in your firm, you can rest easy. The reality is that automation is simply technology that simplifies the recurring manual tasks or processes that people must do, enabling them to be more productive and efficient.

Think tools. Think about the uncalculated cost of inefficiency wherever you see it in your law firm…time tracking on envelopes or corners of notebook pages, or gathering paper logs and inputting time into a spreadsheet. Files that are available only when a person is available to pull them. Reporting that requires manual manipulation to aggregate data from multiple sources.

We still need people to know the law, do the thinking and work with clients. And automation for law firms frees people to do just that, instead of pulling their hair out in frustration or spending nights and weekends on complex manual business tasks.

What is Document Automation?

As a baseline, document automation is software that allows you to collect data and generate documents automatically, based on rules that you set up in the software for those documents.

It is much more than just mail-merge (sometimes referred to as "document assembly"). It can handle complex logic, pull and push data from different sources, integrate across your software suite, and even act like a client portal.

Benefits of Document Automation include:

  • Simplifying your document creation process
  • Enabling easier delegation of tasks and remote collaboration
  • Auto-populating key information across sets of documents all at once
  • Auto-inserting specific text based on rules 

Document Automation for the Legal Industry

Legal document automation isn’t scary. Automating the creation of documents isn’t intended to replace, minimize or threaten what lawyers do. Lawyers always have been, and always will be, the guardians of the legal documents that form the basis of all business; but by automating certain parts of the process, they can be liberated to focus on elements of the role that add real value.

But where to start? Document automation can bring speed, efficiency, consistency, lower risk and lower costs – but how do lawyers, whether in-house and in private practice, start to realize those benefits? How do we define the key terms, how does the process work, and which documents are suitable? What can we learn from the early adopters about getting buy-in, implementing solutions and measuring ROI?

A lot of small and mid-size firms are automating document assembly, which can sound like a daunting task but is really a lot simpler than its technical-sounding name might suggest.

Keep reading to get a better sense of how document automation can deliver value for your legal firm.

How Does Document Automation Work for Legal Practices?

Perhaps you have a document where the number of parties changes on a case by case basis, thereby requiring changes in each document. For example, when a client has no children, a section of a certain document is not included. However, when they do have children, the section is included. Also, the subject-verb agreement will have to be correct throughout the document, which depends on whether there are no children, one or several.

It can be tedious to go through a document manually and find/replace all of these subject-verb agreements and other areas that need editing. That’s where automation comes to the rescue. Instead of manually finding and replacing, a document automation solution will prompt you to enter the number of children. Then, the software will make the appropriate changes throughout the document.

So, if there is one child, the document will read “The one child was...” instead of “the one children were…” or any other mistake. It’s nice not to have to manually go through each conditional section of the document to make sure it fits the specifics of your case.

Why is Legal Document Automation Important?

Automation in legal firms is gradually becoming the norm. Here are a few reasons why legal firms need to hop onto this legal technology to create and manage documents.

1. Saving Time

Firms using document automation saw an 82% reduction in time spent on document drafting. So, where do these time-savings come from? The biggest time-saver is the fact that you only have to enter information once - information that can be used in many matters during the course of a client relationship. Plus, that time-savings is compounded when you create a template set, a group of similar documents you use regularly for clients. With automation, information will auto-populate across an entire group of documents simultaneously and save you the effort.

2. Avoiding Errors

Lawyers often wear a lot of hats. They’re often switching between different clients, matters and tasks, each with their own specific needs. This legal multitasking combined with manual processes can cause us to make mistakes. You can overlook a grammatical error or misspell a name, which can set an unprofessional tone with a client, or cause issues with court filings. According to a Thomson Reuters study, 90 percent of attorneys reported a reduction of citation and copy mistakes when using legal document  automation solutions. In a nutshell, with legal document automation, you can set up guardrails that make these errors easy to avoid. 

3. Empowering  Teams

Document automation makes it a lot easier to delegate legal drafting tasks to other members of your team, including associates, paralegals or admins. When these members of your team have access to templates, designed by experienced lawyers, this enables more of your team to work on billable tasks without constant supervision. And, thanks to the centralization of the documents, it’s easier to collaborate on and review documents created by other members of your team — even if you’re all in different locations.

4. Focussing on What Matters the Most

When you spend less time on legal drafting, you can focus on what matters most to you. You didn’t start practicing law because of a deep passion for drafting documents like commercial leases or engagement agreements. Most of us joined to make a positive change, whether that change is in our clients’ lives, our family’s lives, or perhaps something loftier, like fostering a more just society. When you can automate the bulk of legal drafting, you can spend more time doing whatever it is that excites you about your career. Not to mention, you have more time for life outside of work, whether that means watching a movie, spending time with family, grabbing a coffee with friends, reading a good book, or whatever else you enjoy.

When to Automate

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Consider document automation if your documents or processes are:

• High risk and require constant inputs and outputs across a standalone document or a broader suite

• Done repeatedly, using well-established documents and processes

• Tedious or time consuming to complete manually

• Done on a fixed-price basis and/or with low profit margin

When not to Automate

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Document automation may not be suitable for:

• New areas of legal practice with processes and documents that are still to be settled

• Unique or non-repeatable tasks and bespoke matters, done on an ad hoc basis

• Matters with frequently changing requirements

If automation is not the right solution, consider other ways to improve matter management, such

as task management tools and process mapping.

‍How Does Document Automation Work for Legal Practices?

Perhaps you have a document where the number of parties changes on a case by case basis, thereby requiring changes in each document. For example, when a client has no children, a section of a certain document is not included. However, when they do have children, the section is included. Also, the subject-verb agreement will have to be correct throughout the document, which depends on whether there are no children, one or several.

It can be tedious to go through a document on Microsoft Word and find/replace all of these subject-verb agreements and other areas that need editing. That’s where automation comes to the rescue. Instead of manually finding and replacing, a document automation solution will prompt you to enter the number of children. Then, the software will make the appropriate changes throughout the document.

So, if there is one child, the document will read “The one child was...” instead of “the one children were…” or any other mistake. It’s nice not to have to manually go through each conditional section of the document to make sure it fits the specifics of your case.

‍Common Misconceptions About Legal Document Automation

Before you understand the main features of legal document automation, it is important to go over some common misconceptions about legal document automation.

Here is what legal document automation is NOT.

1.Document Automation isn't Complex

Most document automation tools range in complexity with some even offering 'no-code' solutions to document automation. It isn't something requiring a computer science degree and is meant to  make your life easier, not harder. Most of the legal document automation solutions are intuitive and easy to learn, even if it does require some setup and customization to make it work for the needs of your practice.

2. A Dangerous Robot Sent from the Future

A majority of legal document automation softwares has been built  by industry professionals, not robots sent from the future to make your job more confusing. Some legal document automation solutions have been built by lawyers for lawyers where practical experiences translate to a deep understanding of the documents used in the practice of law.

3. Legal Documents are too Complex for Document Automation

The perceived complexity of a document is largely due to how many external applications or programs need to be used to compile all the necessary information. On one hand you have to retrieve all financial information from an Excel spreadsheet, on the other you must pull any client details or contact information from a CRM system. When performed manually, this can undoubtedly lead to a seriously complex process for creating your documents. When document automation software is brought into the fold, automatically producing such documents with ease, efficiency, and accuracy, does it still seem like a multifaceted process? Document automation seamlessly pulls information from all necessary sources—regardless of how many there may be—eliminating the need for cutting and pasting.

Top 3 Processes that Need Automation in Law Firms

Documents

Correctly implementing document automation returns lucrative results. Not only does it save time, but it also improves accuracy. You can use a standalone software or a law practice management software that offers a document automation feature.

Client Intake

Create webforms that your clients can fill out and use that information to schedule consultations, confirm their appointment and send any instructions or correspondence you may have. You can use that same information to create a representation agreement and a new matter in your system if they become a client.

Client Communications

Create email templates for client updates and communications you use on a regular basis, especially for any communications that require action on your client’s part. Utilize a system or practice management software that has a client portal, so your clients receive documents coming in and going out automatically. Have templates ready for your billing workflows, such as correspondence regarding outstanding balances.

How to Automate your Law Firm?

Automating your law firm might seem easier said than done, but with the right steps in place, the transition can be much easier than you think. Below are six steps to consider when adopting automation technology at your firm.

Choose what to automate: The key is to start with one thing at a time. In particular, start with one thing that you don’t like. Now, think of all the tasks that would be a lot simpler and quicker if you didn’t have to manually execute them.

Evaluate the value of each task: You’ve created a list of all the things you don’t like doing. The next step is to decide which ones are the best automation opportunities. Does it take a lot of time to do? Is it repetitive or tedious? Or is it a necessary task but non-billable? Most importantly, is it time-sensitive?

Create a plan: If you determine your law firm could benefit from automating numerous tasks, create an action plan so you can tackle changes one by one. You’ll also need to prioritize implementation as part of your daily tasks, without jeopardizing the attorney and client experience.

Research automation tools: Once you’ve prioritized which processes to automate, conduct research to find the best solution that fits your needs/

Develop a change management plan: Technological change can be uncomfortable and intimidating for your staff. Ensure they’re aware of the plan. Also, make sure your firm has proper training in place for the easiest transition. It’s always better to communicate change early.

Review and repeat: Although part of the advantages of implementing automation includes being able to just “set it and forget it” thinking everything will be taken care of later, it's always an advantage to regularly re-evaluate your process over time. There are plenty of customization opportunities using automation tools. Also, each vendor will regularly offer new and updated features, so never be complacent with your technology. In fact, regularly asking for feedback from staff and clients will help you uncover valuable opportunities for improvement—and further savings on overhead.

VisionERA - Offering Unparalleled Growth Opportunities for Law Firms.

VisionERA’s document automation capabilities can allow legal firms to quicken the pace at which they produce documents while maintaining quality and mitigating risk. Leverage our AI powered intelligent document processing capabilities and produce documents quicker while improving the quality and consistency of your services. Built on a continuous learning mechanism with feedback for OCR retraining and unstructured content retrieval, and loaded with other capabilities such as a recommendation engine for better sampling of feedback files, and an AI powered IDP advisory that provides insights for strategic decision making, VisionERA can help legal firms automate their manual document processes  and help them free up time for taking on more high-value, strategic, value-added work- all at the click of a button.

If you want to discuss how legal document automation can help your law firm, schedule a free demo with our product experts now.

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