Transformation lags behind evolution
The industry has had to adapt to innovations such as technology, but more still needs to be done to transform it
While the legal sector in SA continues to grapple with the challenge of transformation, new challenges are already emerging, such as those created by artificial intelligence (AI) or those posed by virtual law firms.
It’s not exactly the right time for any sector in SA to be facing challenges. The economy — while performing better than many expected — isn’t exactly steaming ahead at full speed.
Deloitte SA’S director at the risk advisory practice, Candice Holland, says the legal sector is experiencing major changes at the moment, both from a regulatory perspective and from a market relevance point of view. She says the sector will have to reinvent itself significantly if it hopes to be part of the value chain to clients in the future.
Holland says as with any economic downturn, everyone continued to struggle.
“Hopefully this will begin to turn. But it does require firms to reimagine themselves and introduce more digitally enabled solutions,” she says.
When the economy is looking up you’ll find that there are large commercial deals being negotiated and attorneys are at the centre of those negotiations.
They are looking at the terms of the deal, if there are any regulatory requirements, the finance structuring, tax requirements or competition commission requirements.
But on the other hand when the economy is not active and deals are unravelling, attorneys will be at the centre of any restructuring, business rescue or liquidation.
Holland says she has noticed cost optimisation and cost reduction for legal consulting are also typically more in demand when
What it means: Industry needs to focus on bringing transformation on a par with its modern advancements