Law for Professionals Kai Jacob Dierk Schindler Roger Strathausen Editors Liquid Legal Towards a Common Legal Platform Law for Professionals Moreinformationaboutthisseriesathttp://www.springer.com/series/16313 (cid:129) (cid:129) Kai Jacob Dierk Schindler Roger Strathausen Editors Liquid Legal Towards a Common Legal Platform Editors KaiJacob DierkSchindler DeloitteLegalRechtsanwaltsgesellschaft RobertBoschGmbH mbH Stuttgart,Germany Stuttgart,Germany RogerStrathausen Dr.StrathausenConsultancy Sevilla,Spain ISSN2662-141X ISSN2662-1428 (electronic) LawforProfessionals ISBN978-3-030-48265-7 ISBN978-3-030-48266-4 (eBook) https://doi.org/10.1007/978-3-030-48266-4 #SpringerNatureSwitzerlandAG2020 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartofthe materialisconcerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation, broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionorinformation storageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilarmethodology nowknownorhereafterdeveloped. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant protectivelawsandregulationsandthereforefreeforgeneraluse. The publisher, the authors, and the editorsare safeto assume that the adviceand informationin this bookarebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor theeditorsgiveawarranty,expressedorimplied,withrespecttothematerialcontainedhereinorforany errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional claimsinpublishedmapsandinstitutionalaffiliations. ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSwitzerlandAG. Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland Foreword The 2020s looks set to be a decade of unprecedented transformation in the legal world.Newtechnologieswillbringradicalchangestothewaythatlegalservicesare delivered,andnewplayerswillrisetoprominenceinthemarketplace,notleastthe Big4butalso,itislikely,oneortwogame-changinglegaltechstart-ups.Thelegal departmentsofmajororganizationswillbeincreasinglydemandingoncostsandwill reinventthemselves,shiftingfrombeingfrustratedfire-fightersandblossominginto fully-fledgedlegalriskmanagers.Inthecourtstoo,therewillbetransformation,as virtual hearings and online courts replace much conventional public dispute resolution. To guide us through this remarkable maelstrom comes the second volume of LiquidLegal.In2017,IwaspleasedtorecommendthefirstcollectioninTheTimes newspaperintheUK.Itssuccessorismoreambitious,anditisapleasureonceagain to commend this body of work to the legal community. It is a smorgasbord of insights into the future of law, a rich resource for everyone who cares about the evolutionofthelegalindustry. It is a strikingly diverse collection. There is something here for everyone in the law:in-houselawyers,bothinindustryandintheprivatesector;practitionersinlaw firms of all sizes; legal technologists as well as knowledge engineers; academic lawyersandtheirstudents;andalternativeprovidersintheirmanyguises. Theeditorshavedonemuchmorethancommissionthecontributions.Toimpose some coherence on the many different perspectives, they have made explicit connections between related chapters,creatinga network ofanalyses, casestudies, visions,andresearch. The book also has a running and important theme—the idea of designing and building a common legal platform, a shared resource that could help avoid the duplication of effort and reinvention of the wheel that takes place globally today onaregrettablescale.Ifsuccessfullybuiltanddelivered,thisplatformcouldleadnot onlytoamoreefficientlegalmarketbutshouldalsoincreaseaccesstojustice. vv vi Foreword Iwishthisbookeverysuccessandlookforwardtothedebatethatitdeservesto generate. OxfordInternetInstitute RichardSusskind,OBE Oxford,UK March2020 Foreword: Start with Reality Bynow,formanyyears,thelegalcommunityhasbeendiscussingwhethertransfor- mationanddigitalizationisreachingourprofessionandwhatthisactuallymeansfor professionalsinthelegalecosystem. Althoughbookslike“TheEndofLawyers?”byRichardSusskind,whohasalso provided a foreword to this book, have shaken up our profession, I do have the impression that since then, the reality of many legal professionals has remained unchangedoratleastalmostunchanged.Nevertheless,manylegalprofessionalssee adarkstripeatthehorizon.Fortunately,itstillseemstobefaraway,andjustclosing the eyes is still sufficient to postpone any implementation of real changes and to justifycontinuingthediscussionaboutthemeritsofsuchchanges.Thethreathasnot materialized yet. However, the unease is growing and more and more people are feeling it. It is time to walk the talk. In fact, we are seeing that the transformation actuallyhasstartedafteradecadeofdiscussionandisacceleratingatabreathtaking speed.Itisnotthequestionofwhetherwechangebutonlyhow.Theactualquestion is:Dowedrivethechange,orwillwebeovercomebythetransformation? Tobeabletoleadasuccessfultransformation,wehavetostartwithlookingatthe reality. Understanding reality is the only sensible starting point for any journey. Althoughmostpeoplewillassumetheyknowthereality,becausetheydealwithit every day, the truth is that it is not as easy as it appears. Reality looks different depending on your standpoint. In addition, it is not sufficient to consider facts of today but you need to anticipate tomorrow, if not even the day after. You need to have an idea of what is coming, and this can only be an assumption. However, withoutmakingassumptionsyouwillnotbeabletosetaclearpath.Weneedtobe awareofwhereourassumptionsstartandbeopentoadaptthemwhenwerecognize that we were wrong. It is all about being open to change, observing what is happening,andbeinghappyifyoufindsomethingthatallowsyoutoimprove.We must learn to embrace ambiguity and that nobody is completely right in the first place. Another challenge we face is that we tend to see things we would like to see. Biasesarepartofourhumannatureandtheyinfluencehowweperceivereality.Self- awareness and the confidence to admit, also as leaders, that we might have been wrongdemandscourage.Wearenotimmunetotheseeffects,andhowwedealwith vviiii viii Foreword:StartwithReality them will determine our view and approach to the world and the success of our transformation. To make it even more complex, the bias can make you take the past as the reference point and thereby limit your ability to see, or even anticipate, upcoming changestriggeredbydigitalization—tothebetterortotheworse.Often,weexpect exaggerated changes from digitalization. We must retain an open mind to remain adaptable.Wemusthavethecouragetoapplyatrialanderrorapproachtodetermine whatisgoingon.ThisiswhyIlikedthebook“LiquidLegal—TransformingLegal into a Business Savvy, Information Enabled and Performance Driven Industry” (Jacob/Schindler/Strathausen(eds.)2017).Itdidnotassumetoknowwhatiscoming butbroughtavarietyofideastohelpustogetourpictureofwhatishappeningtoday. Once we have understood, and more importantly, accepted reality, we can set a targetandderiveacoursethatbringsustowherewewanttogo.Todothis,weneed notonlytolookatwhatweknowandwhatwehavelearnedinthepast,butwemust haveafreshlookatourtask.Experienceneedstobecomplementedbyopennessand thewillingnesstoquestioneverythingwearedoingwithoutreservation. What Is Driving Legal? Transformationisthebuzzwordofourtimes,andoftenwehearthatdigitalizationis thedriverofthistransformation.Ofcourse,thisistrue—butnotthewholetruth.In fact,newexpectationsfromourclientsandtheincreaseofcomplexityarethedrivers ofmostofthechanges.Today,clientsdonotacceptthatlawyerssitinanivorytower andjustdealwiththelaw.Answersandpracticalsolutionsarekey,andtimeisofthe essence. Practicing the law in such an environment becomes more and more complex. Just looking at the regulatory environment, the sheer amount of regulations, and the public expectation towards our clients, we have to admit that ourprofessiongetsmoreandmoredifficulttomaster.Formercertaintyinthelegal worldisreplacedbyambiguity.Weusedtoliveinalegalworldthatwasgoverned byapositivisticlegalconcept.Theoutcomeofacasewaspredeterminedbythefacts and by the law. It was just a question of how accurate the law was applied. We neededtogatherthefactsandthenwecouldapplythelawjustlikeamachine,which would bring us a result a good lawyer already knew in advance. The rule of law applied. The complexity of today’s international regulation puts limits on this approach. The law became only one part of a social and political interaction that influences theoutcomeofourwork.Ifwelook atlegal risksevolving today,often theoutcomecannotbedeterminedinadvanceanymore.Worse,Ihavetoadmitthat theevaluationofaspecificcase in10yearsmightbedifferent fromtheonetoday, evenwithoutanactualchangeinthelaw.Antitrustlawisagoodexampleforthis.In theEU,wehavequiteastableregulationbutnonethelesstheinterpretationtodayis quite different from what public authorities found 20 years ago. Nevertheless, still today clients typically expect from their lawyer to provide “the answer” and to foresee even future assessments of today’s decisions. The hindsight bias is largely known,butpublicpressurewillalsoplayitspart. Foreword:StartwithReality ix Deglobalization will lead to additional risks, making any forecast even more difficult, especially if we need to plan for some years in the future. The digital transformationatlargeaddsfurthertothechallenge.Softwareisanintegratedpartof manyproductsandAIapplicationsarefindingtheirwayintomoreandmoreareasof business. How are we supposed to deal with products that decide by themselves? Howdoesourlegaltoolsetapplytothis?Thesechangesleadtoanincreaseddemand forlegalworkandatthesametimemakeourjobmoredifficult.Partofourresponse mustbetochangethewaywework.Thisiswheredigitalizationjumpsinandnew formsofcollaborationbecomeanecessity.Weneedtosharetheknowledgewehave in our organization and find new interfaces to the business world to make sure we havealltheinformationweneedtomakesounddecisions.Justapplyingthelawas “legalmachines”liesinthepast.Donotgetmewrong,excellenceinlawisstillan indispensableconditionforalawyerbutitisnotsufficient.Merelyofferingspecialist knowledgewillnotearnyouaseatatthebusinesstableanymore.Weneedtobring differentspecialiststogethertofindthebestsolutioninawaynotslowingdownour reaction time and not multiplying the need for resources. A successful lawyer is a riskmanager,whoneedsabroadcomprehensionofthetechnical,commercial,and socialinteractiontoassesstheimpacthisorheradviceandthefollowingdecisions willhave.Weneedtodeveloptheprofessionfurtherandtoadmitthatwealsoneed newcapabilitiestostayrelevantasaprofession.Thiswillonlybepossibleifwelook atthepeople.Wehavetoorganizeourselvesaroundhumanbeings. However,noneedfordoomandgloom!Ibelievethatwearelivingininteresting times. We have the opportunity to rethink our profession. Nothing we learned and what seemed to be cornerstones of our profession remain unchallenged. We are askedtoquestionanythingandtochangewhatbecomesanimpedimenttousevenif itwashelpfulinthepast.Whatwedoandhowwedoitneedstobeusefultoday,and no merits of the past justify keeping something not supporting our transformation. Thisisnotabouttheonebigleap—wewillratherhavetotakemanysmallsteps,and sometimes,evenaccepttotakeastepback.Suchistheprocessofinnovation.Letus findatargetandmoveinthisdirection,andletusbehonest:somesetbacksarepart of the transformation—no problem, as long as the direction is the right one. Sometimes, we will have to amend our plan, and sometimes we even might need toadapttothetarget.Letusbeopentorealityandfollowourpathbutneverassume wearealwaysright.Collaborationanddigitalizationwillbekeytothis,butalsohave yourconcretetaskandyourowntargetinmind. People and Leadership Isiteasytoforeseescenariosthatarenightmares?Withoutadoubt.Isitpossibleto seeascenariowhereeverythingturnsoutwell?Again,withoutanydoubt.Thefuture isnotdetermined.Itisuptoustoshapethefuture.Thetransformationseemsathreat to some, but it depends on our choices and our actions. Whether it turns out positively or not does not depend on a certain technology but on the question: How do we deal with the transformation? It is our responsibility to implement the