A recent report by the Law Society emphasises the need for the Welsh government to grant financial aid to small and medium-sized law firms, enabling their investment in legal technology.
The Law Society’s report suggests that grants should be provided, potentially modelled after international initiatives like Singapore’s Tech-celerate for Law which offers up to 80% funding for tech investments. This would aid SME law firms in Wales which often lack the resources that larger firms possess, especially when choosing the right technology, a process that can be costly if missteps occur.
The report also highlights the necessity for the integration of artificial intelligence. For this, the Welsh government should collaborate with tech firms to support law firms both in acquiring and implementing AI systems efficiently and safely. Researchers urge for a comprehensive review by both UK and Welsh governments on the utilisation of current and emerging technologies within Wales’ legal sector.
The challenge of retaining legal talent in Wales is also discussed, with recruitment being a major concern for 17 out of 20 SME law firms interviewed. Despite an increase in law graduates, many are leaving the country for better opportunities. The suggestion includes additional bursaries for students who commit to staying in Wales for five years post-qualification, though implementation challenges exist.
Emphasising the idea of ‘nearshoring’, the report suggests the potential for Cardiff to become a hub for outsourcing functions by larger law firms to cut costs. The strategy involves creating bases in various locations and offering flexible workspace options throughout Wales.
Concerns over ‘legal advice deserts’ in rural Wales are raised, with a call for greater accessibility to legal aid outside the urban M4 corridor. Mark Davies, chair of the Law Society’s national board for Wales, expressed deep concern over this growing issue.
The report cautiously supports the devolution of justice functions, suggesting that the Welsh government should establish a comprehensive framework before further devolution. Jonathan Davies, the head of the Law Society in Wales, cited the need for a minister of justice to create a focused budget for the sector, presenting a vision of gradual evolution rather than abrupt changes.
The Law Society report outlines a forward-thinking blueprint for the future of Wales’ legal sector, advocating for both technological advancement and strategic talent retention to enhance its long-term viability.
