publication of the International Legal Technology Association
Issue link: https://epubs.iltanet.org/i/355985
ILTA WHITE PAPER: JULY 2014 WWW.ILTANET.ORG 21 BIG DATA: OPPORTUNITIES AND RISKS With all the positive hoopla surrounding big data, the concept also brings with it a host of negative issues. Here are some pros and cons on the topic. Positive effects include: • Efficiency: Allows us to save time and decreases time spent on similar matters • Profitability: Increases the number of matters and clients, hence the bottom line • Productivity: Improves effectiveness day to day (i.e., what used to be completed in a week now takes just a day) • Proactivity: Allows us to do more to prepare for certain outcomes (e.g., a firm can predict in advance where it might need specific practice groups of associates because there is a gap in classes) • Compliance: Provides the ability to track data patterns and user behavior and notify firm management about irregularities on sensitive matters before they become a problem However, the world of big data also brings risks, including: • Automation: As more tasks are automated, human judgment is not part of the analysis, meaning data can be flawed • Speed: With a faster turnaround rate, there is greater potential for mistakes or "noise" • Predictability: Users need to realize big data does not point to certainties but to the predictability of results • Privacy: Consider what data is exposed and if there are any legal implications • Politics: Decide who should have access to these insights (only partners or senior management?) • Skill Set: Determine who has the ability to analyze and manage big data (KM or IT staff or attorneys?) When embarking on a big data initiative, one needs to fully consider all risks involved in the project and how the new insights will be utilized. BIG DATA AND LEGAL: WHERE ARE WE HEADED? Though there's disagreement about whether big data is "here and now" in the legal industry, everyone agrees we need to become more aware of the effects of big data for the future. What will catapult law firms into the big data arena? One factor revolves around client expectations. Big data is currently affecting many of our clients, and their expectations around it are growing. There is also a risk of not using it — namely malpractice. Clients could come to expect this analysis as a basic type of service before engaging a firm. Many KM professionals also agree that we need to get a better handle on how big data will affect firms/legal departments internally. How can big data make firms more profitable? According to Oz KNOWLEDGE MANAGEMENT: MINING FOR GOLD IN BIG DATA When embarking on a big data initiative, one needs to fully consider all risks involved in the project and how the new insights will be utilized.