Lawtech: Levelling the Playing Field in Legal Services?
25 Pages Posted: 22 Apr 2021
Date Written: April 21, 2021
The legal services market is commonly thought of as divided into two “hemispheres”-- PeopleLaw and BigLaw. These segments represent, respectively, individuals and corporate clients. The last few decades have seen an increasing concentration of resources within the legal profession toward serving corporate clients, to the alleged detriment of consumer clients. At the same time, the costs of accessing legal representation exceed the financial resources of many ordinary citizens and small businesses, compromising their access to the legal system. We ask: will the adoption of new digital technologies lead to a levelling of the playing field between the PeopleLaw and BigLaw sectors? We consider this in three related dimensions. First, for users of legal services: will technology deliver reductions in cost sufficient to enable affordable access to the legal system for consumer clients whose legal needs are currently unmet? Second, for legal services firms: will the deployment of technology to capture economies of scale mean that firms delivering legal services across the two segments become more similar? And third, for the structure of the legal services market: will the pursuit of economies of scale trigger consolidation that leads both segments toward a more concentrated market structure?
Keywords: legal services, legal tech, lawtech, access to justice
JEL Classification: K40, K41, L84, O33
Suggested Citation: Suggested Citation