As far as the legal sector is concerned, the way to organize the division of labor between different players is governed to a large extent by transaction costs. If the technology changes, transaction costs will also change, which will change the competitive situation. Insofar as established actors are unable to recapitalize and reorganize their business, they will largely be replaced by new service providers for the benefit of the customers in a creative destruction process.
Declining transaction costs also affect the size of the companies and the number of jobs. At the same time, increased productivity will increase the demand for work. Simple routine jobs and encodable tasks disappear while demand for problem-solving and creativity increases. Less qualified legal work with more repetitive elements will be automated or, as far as possible, moved to other countries (legal process outsourcing). The qualified, creative legal information that is difficult to digitize or where qualified legal and personal services are requested will remain. However, even qualified legal work will change through greater use of different types of analysis tools as part of the work. Digital technology and developments in artificial intelligence allow for the collection and analysis of huge amounts of data. In some cases, they may be used by other automated systems and production processes.
In other cases, however, the possibilities of big data and artificial intelligence are a complementary tool for better, faster and more informed decisions. Implementing digital technology also requires a partially different business model where employees are given a different and extended responsibility. Tomorrow’s day demands that employees be responsible, initiative-oriented and persistent.