In many law firms, legaltech and business development (BD) still operate in silos. Innovation teams experiment with new tools and process redesign, while BD focuses on working with partners to develop clients, launch new services and increase revenue. Both groups are essential – but without integration, legaltech risks becoming a cost centre and BD misses the opportunity to leverage innovation as a differentiator.
The firms that succeed in today’s competitive environment are those that bridge these gaps, aligning innovation with business goals. When BD and innovation/legaltech work together, firms can move from pilots to profits: securing tangible ROI on rolling out new tools, building tech products that respond to client needs and reinforcing market differentiation. Additionally, when marketing joins the conversation at a strategic level, innovation becomes an essential part of the brand promise and the client experience.
Start with the business problem
A common mistake in legaltech initiatives is starting with the tool, not the problem. A typical recommendation is to map processes and identify pain points that could be eased by leveraging technology. Furthermore, in recent conversations around implementing legal AI tools, the common advice is to identify the use cases first and scale the tool rollout only after that.
A more strategic best practice goes one step further: start by identifying which areas would benefit most from a technology-driven boost, strategically speaking.
- Which areas face profitability challenges?
- Which services could be strengthened through differentiated service delivery?
- Which key client relationships could be enhanced through legaltech platforms or products?
BD should be at the table (if not in the driving seat) when priorities are defined and roadmaps are set for legaltech activities.
Efficiency begins with the right questions
Efficiency-driven projects in particular – workflow and document automation, or augmenting document review with AI tools – should not be adopted in the abstract. They should begin with a hard look at the firm’s services under the most pressure:
- Which areas are facing pricing pressure or fee erosion?
- Where are we seeing commoditisation and declining profitability margins?
- Where are clients questioning value, and where do competitors already offer faster, cheaper alternatives?
Targeting innovation where pressure is highest creates impact that partners and clients can measure. It ensures technology adoption is not ‘innovation theatre’ but a practical response to real challenges. A close cooperation with the BD teams, a joint evaluation of priorities from a business point of view can amplify the ROI on the legaltech teams’ projects and, thus, the success of its agenda.
Client-facing products need a clear business goal
Many law firms are experimenting with client-facing digital products: self-service automation platforms, client dashboards, compliance tools, and so on. These are promising avenues for growth, but too many are launched without clarity on what they are meant to achieve.
Every product should be built around a specific business goal, for example:
- Additional revenue through subscription models
- Lead generation by capturing client needs earlier in the lifecycle
- Key client value-add, deepening relationships through bespoke solutions
- Brand differentiation that positions the firm as innovative and client-focused
Such business goals should not be defined alone by the innovation teams. BD has a key role in identifying what the envisaged return should be on a legaltech product’s investment and what the BD objective of the legaltech project is. Without a clear objective, firms risk investing in ‘nice-to-have’ tools that don’t move the needle commercially.
Test with clients, not just internally
Another frequently overlooked step in legaltech product development is validation with clients. Too often, firms spend months designing tools they believe clients want, only to find that adoption is weak.
The fix is straightforward: involve clients early. BD specialists and client relationship managers can assist the legaltech team in validating the value proposition of the product idea. Testing prototypes, gathering feedback or even co-developing solutions together with the clients not only improves product-market fit but also strengthens client relationships in the process. Clients feel heard, valued and invested – and firms avoid wasting resources on unneeded features. Both client relationship management and innovation goals are pursued in a such a collaborative approach.
The role of marketing: beyond announcements
Marketing’s job in innovation/legaltech isn’t just to announce new tools. It’s to position it as part of the firm’s identity: client-focused, modern and differentiated.
That means:
- Shaping innovation with brand in mind. Marketing helps guide innovation teams toward developments that reinforce the firm’s positioning in the market, ensuring every initiative supports the broader growth strategy.
- Turning tools into value propositions. Rather than promoting technology in isolation, marketing ensures new tools are communicated as part of the firm’s overall value promise – translating features into client benefits such as speed, transparency or certainty.
- Embedding innovation in the brand story. Marketing integrates legaltech into wider campaigns, thought leadership and sector narratives, reinforcing the firm’s reputation as client-focused and forward-looking.
In short, marketing doesn’t just promote innovation – it makes sure innovation strengthens both the brand promise and the client experience.
Summary: growth through collaboration
The legal market is changing fast, driven by technology, AI and client expectations. But legaltech on its own doesn’t guarantee competitiveness, just as BD or marketing on their own can’t innovate service delivery. True growth happens at the intersection: when legaltech/innovation and BD and marketing collaborate to target the right opportunities, validate ideas with clients and ensure every initiative supports business strategy.
Law firms that master this integration will do more than keep pace with change. They will lead it – transforming innovation from scattered experiments into a growth engine that drives profitability, client loyalty and long-term competitive advantage.
Dr. Andrea Miskolczi, MBA is the managing director of InterAlia Consulting.
The Law Firm Marketing Summit takes place in London on 14 October. Click here to read the agenda and here to book a delegate place.
Email your news and story ideas to: [email protected]
