The Legal Services Board (LSB) recently issued new statutory guidance urging legal regulators to foster a regulatory environment that encourages technological and innovative solutions to meet consumer needs. This guidance emphasises the importance of regulators explaining to the public the benefits of using technology to access legal services.
The LSB defines innovation broadly, encompassing new ways of delivering legal services, improving efficiency, productivity, and adopting new business models. It highlights that innovation can include non-consumer-facing advancements and stresses the need for legal professionals to remain competent and informed about technological developments.
This guidance is based on extensive research and consultation, including a major survey published last June which revealed that the pandemic boosted lawyers’ confidence in technology, resulting in a significant increase in its use over the past three years. Another study found that lawyers underestimated the public’s willingness to use technology in legal services.
The guidance outlines three key outcomes for regulators:
Enable Technology and Innovation: Regulation should support the use of technology to improve access to legal services and address unmet needs. This includes promoting technological solutions to inform consumers about prices, quality, and redress options.
Balance Benefits and Risks: Regulators should ensure that the benefits, risks, opportunities, and costs of technology and innovation are balanced in the public interest. This might involve ensuring consumers are aware of how technologies like artificial intelligence are used in legal services.
Foster an Open Regulatory Environment: Regulation should encourage market entry for innovators. This can be achieved through pilots, regulatory sandboxes, and reducing barriers to entry.
LSB Chair Alan Kershaw emphasised the need for regulators to embrace innovation to improve access to legal services and address unmet needs, while remaining vigilant to potential risks.
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