2. 2Feb 2017
Growth would occur mainly among mega-firms and boutique
firms, leaving mid-sized firms as a dying breed.
The “Barbell” Effect
The legal industry is undergoing significant consolidation at the
top while becoming highly fragmented at the bottom.
mid-sized firms= dying
of the world’s lawyers are in firms with fewer
than 100 lawyers96%
of lawyers are in firms with 25 lawyers or less
of all U.S. lawyers are sole practitioners
Law firms are under pressure to develop new ways
to differentiate themselves and increase share of
wallet via technology and integrated services.
We are now seeing an acceleration in the
introduction of new technologies - almost as if
the industry is making up for lost ground.
The question law firms get
asked by their clients:
How do we know
we’re getting our
7. 7Feb 2017
The legal industry in the U.S. alone represents
about $437 billion in spend with two key trends:
Source: Thomson Reuters
1. Companies taking their services in-house, including
2. Outsourcing key services to non-law firms
8. 8Feb 2017
Tremendous pressure on in-house counsel not only to cut
costs, but also to justify every dollar they spend.
This pressure impacts outside law firms because they need
to justify their fees and the quality of their services like never
How to measure QUALITY in a standardized and objective way, and in an
approach that’s prescriptive in nature and able to guide the business?
Traditionally, legal business only knows how to measure COST.
And therein lies the challenge and source of friction between in-
house counsel and outside law firms.
Barclay’s and Amazon have
started to give preference to
firms that can substantiate
that they are innovating,
1. Unbundling and
2. Matter project
3. Improved technology
4. Efficient and continuous
So now law — like every other industry — is clearly a
target of disruptive technologies, even if it is one of the
And much of this pressure has come from in-house
Now there are hundreds of start-ups to assist both law
firms and clients to be more efficient in the legal world.
What are the trends?
The Darwinian theory would probably lead us to
believe that only law firms that are big enough to
have a large budget for tech will survive…
How can a small boutique or mid-sized firm
survive as legal technology spend moves into
Artificial Intelligence and Cyber-security?
Enter: The Nextlaw Global Referral Network
Free, not pay-to-play
Is not limited to one law firm in
any one location
Uses a new technology
platform that makes it easier
and faster to find the right
lawyer at the right firm
Promotes reciprocal repeat
Provides instantaneous access
to the top talent around the
Allows you to market to your
clients and assist them virtually
14. Networks like Nextlaw can help with the dilemma of
obtaining new technology necessary to survive the new
First, Networks can educate through knowledge sharing, like everything Labs invests in,
the latest trends, the newest start-ups in legal tech, and all the new technology that is
out there or which is coming.
Second, Networks can use their power of scale and assist all interested members in
getting needed technology at an affordable price. By aggregating demand, Networks
should be able to exert purchasing power and lead to lower prices for their members.
Third, Networks themselves can look for new technologies that can be used by members
on an ad hoc basis - within the platform! No longer should small firms need to pay
millions for advanced tech when they can pay on an as-needed basis for the tech that is
accessible through the platform.
Drive Technological Evolution
Power of Scale