Key Legal Technology Trends for 2002

by Dennis Kennedy

It's once again time to dust off the old crystal ball and peer into the future of technology in the legal profession. I see ten clear trends for 2002. To round out this survey of the future, I also invited a panel of legal technology experts to add their best insights for the year ahead.

The result is a highly useful list of ideas, forecasts and analysis for the year ahead, especially for firms struggling with what to do in a time of uncertainty and a slow economy. As you plan your technology strategy for this year, this list will help you identify and address some key issues and supplement your own technology to-do list.

I. TEN PREDICTIONS FOR 2002

1. Loose Security Sinks Ships
Security issues vaulted to the top of our concerns in 2001. Stories about hackers, script kiddies and denial of service attacks have made everyone aware of security issues. With terrorism experts predicting outbreaks of cyberterrorism, you can't afford to drop your guard in 2002. No one, especially anyone with a full-time Internet connection, should be lax in his or her security measures. Add to the mix a virtual blizzard of e-mail viruses and indications that some hackers see law firms as a point of access to otherwise secure corporate information and we have conditions that are ripe for serious security problems involving law firms. Expect to see at least one major story of a law firm being hacked in 2002.

2. Testing Travel Alternatives
People are more circumspect about travel these days. The result will be a greater focus on using technological alternatives to travel. Perceived performance drawbacks with videoconferencing and other options began to seem more tolerable in late 2001 as people weighed their concerns about physical safety. The current psychological state will create a demand for developments in videoconferencing and related options in 2002, with significant improvements likely to come in these areas. Watch, too, for innovative uses of NetMeeting and other Internet tools, including old Internet standbys such as message boards. The big surprise may come in the growing use of instant messaging by lawyers.

3. Microsoft - Its Own Worst Enemy?
Over the last few years, the legal profession has largely turned into a Microsoft shop. There are benefits of that shift, but there are also costs. Office XP, for example, showed that Microsoft was willing to listen to lawyers' needs. On the other hand, there are growing questions about just how high the price we pay to Microsoft really is. Microsoft's controversial changes to its licensing policies ruffled more than a few feathers in 2001. Stories of security holes in Microsoft programs became routine as hackers and virus writers used Microsoft programs for target practice.

However, the warning issued by the FBI in December 2001 about security problems in Windows XP may have marked a critical turning point in the Microsoft era. The Windows Update site at http://windowsupdate.microsoft.com/default.htm may now be the most important security site for all of us to know.

As a result, much attention will be paid this year to Microsoft and the reliance on an integrated Microsoft platform. The problem: the antitrust case aside, there are few practical alternatives for most law firms. Nonetheless, look for more firms to investigate Open Source alternatives, such as Linux, the Netscape browser, e-mail alternatives to Outlook, and, perhaps surprisingly, the Macintosh platform.

4. E-Managing the E-Mail Mess
An interesting survey indicated that whatever the number of e-mail messages people received, whether ten or several hundred a day, they all concluded it was simply too many messages. E-mail is truly the "killer app" on the Internet, but things have spun out of control to the point where the phrase "e-mail management" seems like a bad joke. From managing your inbox to waging war against spam to the plague of e-mail viruses, it's easy to feel overwhelmed by e-mail. Add to that the difficulty of finding old e-mails when you need them. E-mail has already created storage and bandwidth problems for many firms. But the biggest issue for many firms is simply finding ways to ensure that e-mails are made part of the actual paper client "file." Expect firms to devote considerable time and resources to this issue in 2002. Unfortunately, there is no easy solution out there now, but I've heard of several companies focusing on this issue.

5. Personal Knowledge Management Possibilities
E-mail is just one component of the information tidal wave that washes over lawyers every day. Try remembering whether you saw a case mentioned on a web site, an e-mail newsletter, a discussion list, a phone call or by a colleague. It's not a matter of digging through a stack of papers on your desk or flipping through a legal pad any more. While many software companies are targeting the legal market with enterprise knowledge management tools, adoption of these enterprise tools in the practice at large is probably several years away. At the personal level, it's a different, and welcome, story. Look for new bookmark managers, personal search assistants and organization tools to appear throughout 2002. The dot-com collapse of 2001 took down some very promising tools in this category, but much interesting work is being done in this category.

6. Web Sites That Matter
Hey, I know most firms and lawyers have a web site by now. Here's a test: go to your firm's site and try to use it just like you do any other site on the Internet. Then compare it to your favorite sites. See the problem? Take a look at the traffic statistics for your site. Are they what you hoped for? Is your web site hurting you or helping you? People increasingly rely on the Internet for all kinds of information. The image your firm's web site creates for users speaks volumes about your firm. I expect to see by late 2002 a renewed emphasis on and evolution of law firm web sites to be truly useful for both clients and the public at large and allow firms to capture the benefits of being on the Web. Expect to see renewed emphasis on client services, delivery of professional services (as U.S. firms try to catch up with innovation in the United Kingdom and Australia in particular), extranets and, believe it or not, ways to generate revenue streams off web sites through pay-for-content mechanisms and other innovations.

7. Home Computing Drives Office Upgrades
Lawyers who purchase home computers often find that, in addition to having a faster, more feature-laden machine at home than in the office, they are a generation or two ahead of their firms in software. If at home you are using Word XP and in the office you continue to use Word 97, you will at least feel a disconnect, if not outright frustration. Lawyers buying Palm and Power PC devices, e-mail pagers and wireless devices (or receiving them as gifts) put great pressure on firms to accommodate these devices on the office system. No technologically savvy lawyer likes to feel that technology tools hinder his or her practice. That feeling is likely to grow in 2002 and, from simple things like CD burners and scanners to handheld security issues and demand for new software versions, law firms will hear lawyers complaining about not being able to do the things they can do at home.

8. Economy Emphasizes Excellent Decisions
With a slow economy, law firms are faced with choices about technology spending. The natural tendency will be to pull back and reduce technology spending. This approach may be completely wrong for some firms and a wise choice for other firms, depending on how those decisions are actually implemented. How do you decide? That will be the big question in 2002. Much as in the stock market, a return to good fundamentals and a focus on return on investment is key. More important, however, is adopting a strategic approach that involves planning and equipping yourself with technology that will take your practice to where you want to go. That will take time and effort, and probably result in a few disappointments, but there is definitely a cost of standing still. My best tip: talk to your young lawyers and get them involved in technology decisions.

9. Outsourcing - A Necessary Option?
Many firms are lucky to find an IS staff that can maintain their networks. To find and keep a staff that also keeps up with security and other issues is extremely difficult. Expect to see many firms consider outsourcing network security and other traditional IS functions to third party vendors. Firms were rightfully wary of ASPs (Application Service Providers) in 2001, but the trend for ASPs, software subscription models and outsourcing of certain functions has a certain inevitability to it. A tip: firms probably do not want their IS departments signing standard outsourcing agreements without review by knowledgeable attorneys. It is not yet clear what the impact of storage of client data with or allowing potential access to client data by third party service providers will be on attorney-client privilege or confidentiality obligations.

10. Working the Way We Work
I've seen more signs that we are moving toward technology that works more like the way we work. In the past year, I've used the excellent case management program, The MasterList, because it reflects in many ways the way I work.

It has a project-oriented focus, a great way to "triage" to do lists and a good platform for dividing projects up into component tasks. Even better, a recent feature incorporates a mindmapping program that allows me to create the mindmaps (a form of visual outline) that I use for things like planning this article. Also, watch for continuing developments in handheld devices that reflect the ways that people actually work.

Bonus - Two Trends to Watch

1. AI - 2002 will see the beginning of some interesting artificial intelligence based applications moving into the legal profession. One of the most exciting developments in legal technology is based on technology developed by DolphinSearch (http://www.dolphinsearch.com) and is being implemented by Michael Kraft and his colleagues at Kraft, Kennedy & Lesser (http://www.kkl.com). This technology uses a pattern recognition approach that actually evolved out of years of research in dolphin communication. These applications have some fascinating possibilities, mainly at the large firm level at this point, and may address several of the issues discussed above and below.

2. Blogs - Some of the real energy on the web can be found in the growing use of weblogs or "blogs". Blogs are simple journals published, usually daily, on the web. They can be used as mini-newsletters, places to collect thoughts and links and ways to provide news and other updates. Blogs are a true web phenomenon and may have application in both internal knowledge management and external communication to clients and others. A great introductory resource on blogs can be found at http://www.well.com/user/jd/weblog/roundup.html. The recently released software tool called Radio (http://radio.userland.com) may be the easiest way to enter the world of blogging.

II. PREDICTIONS FROM OTHER LEGAL TECHNOLOGY EXPERTS

Wells Anderson - Legal Technology Consultant based in Minneapolis (http://www.wellslegaltech.com)
I hate to bear the bad news, but forewarned is forearmed. In 2002 we will see sharp increases in the numbers of lawyers who lose the entire contents of their hard disks to viruses. Too many are uninformed and not taking basic precautions. As the volume of spam e-mail messages grows rapidly, interest in smarter filtering software and services will increase. On a brighter note, more law firms will roll out practice management software as Lexis-Nexis spreads the word about Time Matters and West Group advertises ProLaw. Larger firms will take interest in full practice management in a Web browser, like Time Matters World Edition, because the technology reduces implementation headaches and deploys virtually anywhere.

Jeffrey Beard - Legal Technologist at Quarles & Brady and Legal Technology Columnist (http://www.quarles.com)
We'll see more evolutionary, as opposed to revolutionary, advances in legal technology usage. "Convergence" and "integration" of will be driving forces to that end. The portal concept will further permeate the practice, as information from discrete sources and programs will become integrated and accessible in more convenient methods. However, a number of firms will still "be thinking about it" during 2002.

Other trends I see for the coming year:
1. Document imaging and collaboration tools will continue their penetration in litigation and transactional practices, as a more efficient means to work with the ever-increasing number of documents involved.

2. Mobile solutions will continue to flourish, as attorneys and their clients need to rely upon remote access to their relevant information. However, security issues will remain paramount.

3. Stronger focus on practice segment accountability and profitability as financial well-being is placed under the microscope.

4. E-commerce and electronic document usage may get a boost as individuals and businesses seek alternatives to mail handling problems.

5. Until the U.S. adopts a "universal" wireless standard for portable devices, high-end wireless solutions will have difficulty keeping up with European and Asian efforts.

Jim Calloway - Lawyer and Practice Management Advisor for the Oklahoma Bar Association (http://www.okbar.org/map/)
1. The pace of miniaturization of tech devices continues to speed up. Already there are unbelievably tiny hard drives and ultra-small mobile phones. Soon airline travelers may ditch the hassles of their laptops in favor of a chip on a key chain that contains all of your software and data and can be plugged into a waiting computer at your destination.

2. Online education and training should boom this year. Online CLE programs offer convenience to the busy lawyer. If a law office software vendor really wants to distance itself from the competition, put a complete free online training program for the product on the web.

3. Video-conferencing has really taken off in the post 9-11 world. We already have depositions with the participants in different states. How soon will it be until you can answer the court's motion docket call from your desk at your office via the Internet?

4. Access codes and copyright law will become the topic of dinner table discussions as many of the anti-consumer provisions of the Digital Millennium Copyright Act become more well-known and understood. It's amazing what a few million in lobbying bucks can buy these days.

Sam Guiberson - Lawyer and Legal Technology Consultant
In the latter part of 2002, I see the beginning of an Internet renaissance focused on multimedia delivered over the Internet. We won't see the great "convergence" media conglomerates have been licking their chops over for many years, but early adopting consumers will begin to utilize more imagery, video and audio for free and for sale on the web.

Lawyers will also begin to integrate more diverse media into their computing experience, on and off the job. Motion practice will go in motion and painting a picture for the jury will be taken literally. In 2002, legal advocacy training will include the axiom, "One lawyer who speaks in many media is worth a thousand lawyers using only words."

Jerry Lawson - Lawyer and Author of The Complete Internet Handbook for Lawyers (http://www.netlawtools.com)
1. I believe there will be a major backlash against Microsoft over shoddy computer security. One harbinger of this was PC Magazine columnist John Dvorak's suggestion last fall that Microsoft needs to redesign its macro structure from the ground up. People are finally beginning to understand that basic features like Windows Scripting Host and the Microsoft macro system are fundamentally unsound. You can patch them and patch them, and patch them again, but the underlying weaknesses are still there.

2. In the legal research area, I see an increased interest in what is known as the "Invisible Web," documents like PDF files and information stored in databases that aren't accessible via normal search engines. The factual information available there can be particularly valuable for litigators. The book, The Invisible Web, by Sherman and Price is a good guide.

3. Extranets will become even more important. The most common use at first will be providing clients with housekeeping information like billing records. Some more innovative firms have begun using them more aggressively to provide legal services over the Internet, and this trend will continue. It makes sense, for a variety of reasons.

4. Finally, instant messaging services will undergo a drastic increase in popularity - especially if the incompatibility problems can be resolved.

Wendy Leibowitz - Legal Technology Columnist (http://www.wendytech.com)
1. The most technologically-impaired institutions in our legal system - no, not your law office, I mean the courts - will begin to make real use of electronic filing and other tech tools to serve their clients and improve life for litigants. The year 2001 saw the U.S. Supreme Court accept electronic filings in Bush v. Gore, and, during the anthrax scare that stopped the Court's postal mail, Justice Rehnquist ordered that filings be accepted by (gasp) e-mail. Admittedly the move to technology came because the Court had no choice, but let's take progress where we can. The courts are "getting it" when it comes to technology.

2. The products will become truly easier to use, which they have not been. This will lead to unintended consequences as more people master the technology and use it. For example, some courts have started to put forms online to help pro se filers. This has led to an improvement in pro se filings - but also to an increase in pro se filers, which the courts did not anticipate and might not welcome. In 2002 we will think more carefully about the outcomes of widespread technological acceptance, and will try to be better prepared.

3. We will see, in the latter half of the year, a return to entrepreneurship by many lawyers who are investing in the technologies. After the dot-coms went dot-gone, and the recession hit, many people took refuge in the Big and Safe. But the Internet's level playing field is a constant invitation to lawyers to invent their own, better way to practice, and to try to market it on their own. Technology will unleash the solo practitioner in every lawyer.

4. We might see some use of the technology to try to build meaningful international legal communities and civil gatherings, online and off, on standards for everything from cell phones to military trials. S