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Home > CIIMA > Vol. 22 (2024) > Iss. 1

 

Communications of the IIMA

Abstract

This study explores the dynamics of digital transformation within the legal services

industry, focusing on the integration of artificial intelligence (AI) to augment

human capabilities. By examining the interplay between institutional norms and

technological innovations, this research aims to understand how AI disrupts

traditional legal practices while maintaining ethical standards and promoting

equitable access to justice. Employing a qualitative content analysis, this research

analyzes data from international news sources spanning April 2011 to March 2021.

The study examines the roles of key industry actors, identifies barriers to digital

adoption, and explores the implications of digitalization for competition within the

legal sector.

Institutional Theory is utilized to highlight the pressures influencing AI adoption.

Findings reveal three primary barriers to digital transformation in legal services:

limited incentives for technology investment due to traditional billing models,

competency gaps between legal expertise and IT skills, and institutional resistance

from entrenched professional norms. Despite these barriers, AI technologies offer

significant opportunities for efficiency and innovation in legal practice. By

automating routine tasks such as document review and case analysis, AI allows

legal professionals to focus on higher-value activities requiring human judgment

and creativity.

This research contributes to the discourse on digital transformation by highlighting

the unique challenges and opportunities within the legal services industry. It

provides a nuanced understanding of the sector’s slow yet ongoing adaptation to

AI innovations, enriching the theoretical and practical discussions on digital

transformation in professional services. The study’s reliance on news sources for

data collection may not capture the full breadth of internal industry perspectives

on digital transformation. Future research could benefit from case studies or

interviews with legal professionals to deepen the understanding of AI’s impact. For

legal practitioners and firm managers, this study underscores the importance of

reevaluating business models, enhancing IT competencies, and navigating

institutional norms to leverage AI technologies effectively. The findings suggest that

digital transformation in legal services holds potential for democratizing access to

legal advice, though it raises ethical considerations regarding the quality of

automated services and data security. By investigating these dynamics, this study

aims to contribute to a more comprehensive understanding of how AI can be

ethically integrated into legal practices, ultimately enhancing human

capabilities and promoting societal well-being.

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