Big Data and Its Applications: What are Lawyers Worried About?

Big Data is a big topic with legal professionals these days, and was revisited at the Legal Executive Institute’s COO & CFO Forum. Financial journalist, Gregg Wirth, deduced from the panel that law firms are not using data analytics, and if they are collecting data, they don’t know what to do with it. The data many firms collect is completely unstructured. They haven’t grasped that by structuring the data and analyzing it appropriately they can make firm improvements and increase efficiencies. Those who are smart enough to get data engineering consulting are able to improve their business operations and increase revenue. Cost is also an issue as the ROI may be difficult to distinguish with standard benchmarks like client satisfaction, reduced costs, and improved productivity. And don’t forget the costs associated with avoiding legal or compliance issues, which comprehensive business intelligence (BI) software can help identify. Law firms and almost all organizations are required to put in place effective data protection measures to ensure compliance with the GDPR laws or other similar data protection laws. If these measures do not comply, then firms face a number of legal repercussions, which is why it’s beneficial to understand more about the data a firm collects and how it is made use of.

Law firms are doing a fine job collecting massive amounts of data about their customers and own operations. Unfortunately, they’re failing to make good use of it, according to speakers at a series of panels on Big Data at the Legal Executive Institute’s recent COO & CFO Forum.

In fact, stakeholders usually don’t understand the data analytics process even though its implementation could result in increased firm efficiency and profitability. “There is a sense of urgency at law firms over Big Data because they know it’s important, but many may not know how to even approach it,” said James Michalowicz, president of Michalowicz Consulting, adding that it’s vital for top firm management to get the “buy-in” from partners if any effort to employ Big Data analytics is going to succeed.

This is difficult, Michalowicz acknowledged, because most lawyers would view Big Data as a threat to their jobs, their security and their expertise. “Most would see it as a threat, but the key is to make them see it like an opportunity.”

Another panelist, Oz Benamram, Chief Knowledge Officer at White & Case, put it more succinctly, saying: “Lawyers see Big Data like they see global warming. Some say it’s not happening and others say the consequences will only be felt after I retire.”

Dr. Christopher Zorn, a Research Professor at Penn State University and Principal at Lawyer Metrics, said lawyers need to better understand what Big Data is and how it can be used to improve their performance and that of their firm. Speaking on a panel called