Seven key benefits of legal document automation

To remain competitive and profitable, legal teams need to find ways to streamline manual processes, reduce redundancies, and improve operational efficiencies. One easy method for accomplishing these goals is implementing a legal document automation process. 

What are the benefits of document automation?

Can legal documents be automated? The answer is yes. While there are countless benefits, here are just some of the vital advantages law firms get with document automation:

• Increased workflow efficiency. You can create a wide range of legal documents in a fraction of the time it previously took with document workflow automation. In fact, you can create first drafts up to 72% faster than manual creation while also streamlining and automating document lifecycle steps such as approvals and e-signatures. 
• Increased profitability. On average, lawyers without an automation tool spend up to 56% of their time drafting. Automating reduces the time it takes to create legal documents, freeing lawyers to work on higher-value matters. 
• Reduced likelihood of errors. When lawyers have to create documents from scratch, it increases the possibility of mistakes. Automating legal documents eliminates these concerns, producing document templates that are accurate and consistent every time. 
• Integration with other technology. Automated data inputs from integrated practice management systems, so your information is entered in only one place and is easy to reuse. 
• Retention of firm "know-how." When lawyers leave a firm, a lot of brainpower and know-how could go missing. However, document automation can remedy this since it essentially serves as a continuous repository of firm knowledge. Bonus: it can help speed up the onboarding of new lawyers at your firm. 
• A better client experience. The ability to produce customized legal documents quickly provides an enhanced experience and improves client satisfaction and retention. More — and happier — clients equals overall firm profits.
• Attract new clients. Today's clients are technologically savvy and expect a lot — and document automation can deliver on those expectations. By offering self-service options for clients to access and create legal contracts when needed, they will remember their experience and likely return to your firm if new legal issues arise. 

For decades, law firms have operated under a business model where lawyers spend much of their day on time-consuming tasks like researching and drafting contracts and other detailed legal documents. As technological advancements like artificial intelligence (AI) continue to permeate every aspect of life, lawyers may want to explore ways to harness and use this technology to their advantage.

What is legal document automation?

Document automation is the process of using software to create automated templates for documents — like contracts — eliminating the need to build documents from scratch every time. Once a template exists, software users typically answer a questionnaire, which the software uses to generate the contract instantly. Some software can then create a suite of related documents from the same initial data inputs as needed. 

Document automation solution options include standalone software, which isn't part of a larger technology suite but may include specialized features like template libraries for specific jurisdictions. Other software integrates with existing systems with an open API, allowing it to speak to the firm's technology. 

Making the case for document automation adoption

The process of automating documents is as simple as it is effective. It uses your firm's existing legal documents — including contracts, purchase agreements, estate planning documents, leases, licenses, etc. — to generate templates that you can use to produce new legal documents.

Today's legal marketplace is more crowded and competitive than ever, and law firms must find ways to differentiate their services and approaches from those of their competitors. Document automation significantly benefits lawyers and their clients — helping your firm be more targeted and strategic. 

Are you ready to implement a document automation process?

From how you promote your firm to how you interact with clients, technology is rapidly changing how firms operate. Even if your firm has been slow to embrace new technologies, your clients are using them and expect you to quickly deliver the detailed documents they need to resolve their legal issues.

The hard truth is that firms failing to adopt new technologies and continuing to operate under outdated business models risk being surpassed by competitors — and seeing their client and profit bases dwindle. Adopting document automation is an effective way to gain an advantage over competitors and attract and retain clients while increasing your firm's profit margins.

What to look for in document automation software

Firms have choices when investing in document automation software. While considering your options, it's helpful to evaluate them on ease of use, appearance, and user interface. These qualities support smooth adoption and, therefore, a higher return on investment (ROI). Other software features to closely assess include: 

• Template creation
• Custom fields
• Integration capabilities 
• Data gathering abilities
• Ability to "suite" documents 
• Workflow and approval capabilities in questionnaires

Implementing document automation

It's essential to take a strategic approach to software integration in order to leverage the benefits of document automation. First, advocates must make the business case to critical stakeholders, including the managing partner and the finance and IT directors. You should build this business case on the following business considerations: 

• Why should the business automate, and what will the ROI be?
• Are the appropriate resources available, or are the costs included in the business case?
• What is the impact of this change, and the plan to manage it?
• What does a successful implementation look like?

Once a firm selects a vendor, leaders should appoint a project team to manage the implementation. Important milestones will include:

• Project kickoff
• Site configuration
• Template authoring, training, and automating
• Automation review and testing
• Launch

The implementation project team should have a change management strategy in place. This proactive plan should include communicating the change, managing stakeholders throughout the firm, and defining and ensuring the adoption of new processes. 

How do you automate a document process? 

Document automation may sound complex, but in this guide, we simplify the conversation to understand, evaluate, and implement it at your firm.