According to a report by ACC, 78% of surveyed professionals consider a legal tech unit a must-have in their organizations.

In addition, Gartner predicts that the legal tech sector will double in size by 2027, thanks to recent advancements in AI.

This spells heightened opportunities for lawyers who aren’t just fluent in legal language but can also talk shop when it comes to technology. So, if you’ve been considering a switch to a career in legal tech, now’s the best time to take the plunge.

Here, we’ll be covering everything you need to know about making this transition, from the various areas of legal tech you can explore to key skills you should master for success in your new area of practice. 

What is legal tech?

Source: Patricia Manso via LinkedIn

Legal tech (short for legal technology) is a subset of the legal industry, which focuses on using digital tools to streamline legal workflows.

Its general objective is to make legal processes cheaper, more efficient, and accessible using technology. That way, legal teams can spend less time buried in mundane tasks and use more of their bandwidth to add real value to their law firms and corporate organizations.

Major areas of legal tech include document automation, legal research, cloud storage, contract management, and legal analytics, among others.

Also read: Top Legal Careers for the Future You Need To Know

Five top career paths in legal tech

Legal tech is fairly broad. So, there’s a slew of career options for anyone who wants to get into the industry.

Let's look at five major career paths you can explore.

Source: Thomas A. via LinkedIn

#1 Contract manager

A contract manager is a professional who oversees the creation, execution, and ongoing management of business contracts in an organization.

The goal of a contract manager is to improve efficiency, minimize risks, and maintain compliance at all stages of the contract lifecycle.

Modern contract managers are well-versed in technology and use dedicated platforms for handling end-to-end contracting processes.

According to ZipRecruiter:

• There are currently over 46,500 contract managers in the United States (US).
• Atlanta, Georgia, has the highest demand for contract managers.
• 46% of contract managers are women.

Glassdoor reports that contract managers make an average annual salary of $104,000 per year.

Transitioning from a lawyer to a dedicated contract management specialist is relatively easy since lawyers are often involved in contracting processes. Simply master the use of Contract Lifecycle Management (CLM) tools and brush up on your negotiation, record-keeping, document drafting, and people management skills.

‍#2 Legal operations (legal ops) manager.

‍According to Gartner, more than 90% of legal departments predict a workload increase in the coming years. Your role as a legal ops manager is to make life easy for other legal professionals.

You will be the bridge between law and technology, arming legal practitioners with the right tools to streamline their workflows.

You'll automate routine tasks and also train them to use various legal tech solutions to stay competitive.

‍Also read: A Day in the Life of a Legal Operations Manager

‍According to a report by Bloomberg Law, 57% of law firms and 43% of in-house legal departments currently have a legal ops unit, and the future is looking even brighter. In a different research by AxiomLaw, 98% of legal ops departments say they expect to expand further by 2026.Data from Glassdoor shows that legal ops managers make an average of $123,000 per year. However, this will ultimately vary depending on the company and industry.

Source: Robert Gonzalez via LinkedIn‍

#3 Legal data analyst

Source: Francis Lui via LinkedIn

‍Almost 70% of legal professionals say they incorporate legal analytics in their organizations.

Legal teams generate a colossal amount of data from contracts, legal cases, compliance activities, and corporate governance, among others.

This data has critical business implications, affecting everything from risk management and compliance to financial forecasting and strategic decision-making. However, making sense of this data isn't something the average legal professional is wired for.

“Most C-Suite executives bank on data and hard metrics and not word-of-mouth. When you have certain metrics that shed light on how legal teams have contributed to growing the revenue stream of the company, it becomes easier for the GC to make business cases.”

‍~ Gitanjali Pinto Faleiro, General Counsel, Company Secretary & CCO at Greenhill & Co.
‍Navigating the C-Suite as a GC

‍As a legal analyst, your role is to connect the dots between legal processes and business outcomes. You'll spend your day-to-day wrangling all kinds of data, using analytics tools to identify hidden trends that can help stakeholders make informed decisions and give your company a competitive advantage.

According to Glassdoor, a legal data analyst earns an average annual salary of $103,000.

‍Also read: Legal Analytics: Definition, Tools, and Applications

‍#4 Regulatory compliance manager

‍“With rapidly evolving legal technologies, the legal framework tends to lag behind. Whenever there is any amendment in a related regulation, you should be able to suggest necessary changes to the product team to ensure compliance.”

~Juliette Thirsk, Head of Legal at Peach Payments
‍The Counsel Corner: Streamlining Legal at a FinTech Startup

‍Technology comes with a lot of promise. But it also comes with potential risks, from sensitive data privacy concerns to ethical considerations.

New regulations are constantly emerging in response to technological developments, and without a defined structure for monitoring compliance, it is easy to lose track and get penalized.

As a compliance manager, your role is to help your organization stay on top of regulatory policies. You’ll identify new laws surrounding the use of technology and develop strategies that’ll help your company stay compliant without limiting its ability to compete for market share.

According to a report by the Bureau of Labor Statistics (BLS), employment for compliance roles will grow by 5% from 2023 to 2033. It predicts about 34,000 job openings for compliance professionals every year.

‍Glassdoor estimates an average annual salary of $172,000 for regulatory compliance managers in the US.

Source: Roy Snell via LinkedIn

‍#5 e-Discovery specialist

‍The estimated global spending on e-Discovery is expected to hit $17.1 billion by 2027. This growth comes as a result of the globalization of legal matters and the rising complexity of business interactions.

Also known as electronic discovery, this career path focuses on collecting and evaluating electronically stored information (ESI) for compliance audits, litigation, and investigations.

As an electronic discovery specialist, you’ll help organizations manage ESI from business deals, correspondence, and regulatory filings across emails, cloud storage, collaboration tools, and mobile devices.

This data will be useful during litigation, internal investigations, audits, or regulatory reviews.

According to Glassdoor, e-Discovery specialists earn around $88,000 per year.

Watch the Webinar: Elevate Your Legal Career: Proven Tactics for Moving Up the Ladder

Key skills for a career in legal technology

‍The beauty of the legal tech industry is in its ability to combine the precision and rigor of law with the innovation of technology. But to truly thrive in this ecosystem, you need to know your way around both worlds.

Thankfully, some of your skills and general legal knowledge are transferable to legal tech. Here, we will discuss the major proficiencies you'll need to succeed.

#1 Analytical thinking

‍To thrive in legal tech, you must master how to think beyond the obvious--to read between the lines. This is a skill you may already have as a legal professional. All you need to do is brush up on it and figure out how to leverage it for your new role in the legal tech ecosystem.

‍#2 People management

Source: Steve Gregory via LinkedIn‍

Legal tech isn’t just about tools, it’s about people, too. You must master how to communicate and collaborate with colleagues from other units.

Whether you're working with legal professionals who need a tech solution or developers trying to understand compliance requirements, you must learn how to connect the dots, making sure that everyone is on the same page at all times.

‍“Many great lawyers suck at managing people. It is just not the way their brains are wired. And when you put bad people managers in charge of people, it can be a disaster.”

~ Sterling Miller, CEO and GC at Hilgers Grabens PLLC
Ten Things: How to Manage People and Lawyers

‍ #3 Technical proficiency

‍You don’t need to know code, but you must know your way around tech. Being tech-savvy means mastering the basics of how tech works for various business scenarios and knowing how to incorporate digital tools into legal workflows.

You must understand how Artificial Intelligence, automation, cloud computing, and emerging technologies work from a legal perspective.

‍#4 Project management

‍Your ability to stay organized, handle tight deadlines, and collaborate with others will set you apart in legal tech.

Whether your team is rolling out new technology or managing an onboarding process, strong project management skills will always translate to high success rates and fewer glitches. You’ll be the one to make sure everything falls into place, delivering results without missing a beat.

‍#5 Adaptability

‍In the legal sector, things change quickly. New technologies emerge, regulations evolve, and business needs shift.

You must work with an open mind and be ready to make changes to accommodate new realities. This might mean learning new software, adjusting to new workflows, or changing how you deliver legal services entirely.

This will allow you to keep up with the pace of the industry and also drive positive changes for your organization.

Get undiluted insights from Counsel Corner

‍Whether you’re aspiring to start a career in legal tech or looking to level up, you need to always keep your fingers on the pulse of the industry. That’s how you know what’s hot and what’s not.

SpotDraft’s Counsel Corner is your ultimate destination for unfiltered insights. Here, you’ll get a front-row seat to the latest trends, insider tips, and real-world advice straight from the industry’s biggest players.

That way, you’ll ultimately build a career you’re proud of. 

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