Navigating the minefield of legal technology investment
Modern law firms are investing more in technology than ever before, with Miller’s 2025 benchmarking report revealing that IT spend now often exceeds Professional Indemnity Insurance costs in larger firms. This reflects a shift towards digital solutions, most recently including those incorporating AI.
Effective IT solutions can help mitigate risk and reduce negligence claims, by ensuring robust data integrity and secure the management of sensitive information, minimising the risk of data losses or errors that could lead to service failures.
Technology solutions do come with their own risks of course. Cyber security breaches, for example, may result in theft of client monies, or prejudice your ability to provide key services to clients. Planning for unexpected outages or cyber breaches will help reduce the impact of such events should they arise. Selecting IT systems that meet stringent data protection standards and regularly auditing their performance further supports risk mitigation.
Conversely, failures due to inadequately chosen third-party providers, or poorly implemented systems, can expose law firms to regulatory action and professional indemnity exposures, so thorough due diligence and ongoing monitoring are essential.
Due diligence should cover areas such as encryption standards, multifactor authentication, access controls, certified data centres, business continuity planning, and strong contractual protections. These measures enhance security, reduce the likelihood of errors or breaches, and ensure firms retain control and recoverability of their data. Cloud services offer scalability and often superior security, but gaps between demo and actual performance can arise if implementation or user training is poor.
Ultimately, by investing in secure, compliant, and well-supported IT systems, law firms can significantly reduce the risk of negligence claims, regulatory action, and management liability. Regular reviews, audits, and feedback from peers should inform procurement decisions, ensuring chosen systems meet both operational and regulatory needs.
Calum MacLean’s recent thought leadership article: Navigating the minefield of legal technology investment – provides further guidance > Navigating the minefield of legal technology investment – Miller