The Downside of Automation

The Disadvantages to Having Your Firm Automated…

Yes, you read that correctly. 

In our fast-paced world where we are constantly looking for every way to make things more efficient, more effective, less laborious, more agile, flexible, improved quality with less human error, all wrapped up in a nice little bow called cost saving – there is a downside. A disadvantage. A not-so-nice-to-have.

Sure, automation has taken the heavy-lifting graft and made it that much easier for law firms to digest, to process and to charge for – so much so that legal eagles have been freed up to concentrate on the more complicated legal matters that they can really sink their teeth into. It’s saved the legal profession from being bogged down by the proverbial paperwork and has made the workplace a less stressful, more harmonious place – in theory anyway. 

But at what cost?   

And this is coming from us – a legal tech company. 

The truth is, we have written – naturally – time and time again about the advantages of automating your law firm to some degree. We have explained how it can assist with your accounting and reporting, how it can take your billing requirements and contract review processes and complete them almost at the touch of a button. We have sung jubilantly about the pros of automation and will continue to do so as we wholeheartedly believe that it is the way to go. 

But – and again, there is always a but – with the good there is the bad. With a pro there must be a con. You know, the whole yin and yang shebang. It’s the nature of things. How the world works. With an up there is a down. You catch our drift…

With that said, in this article, we will be chatting about some of the disadvantages that come with automation. Because yes, there are some. 

So, without further ado.  

What are the Disadvantages of Automation?

While we still believe that there are many benefits of automation in the workplace, we have realised that it’s not without its drawbacks. Challenges posed by workplace automation include –

Cost of Implementation

While automation can pay significant dividends, it’s important to note the implementation costs when calculating the potential return on investment. There’s no denying that initiating the whole automation process can be costly but not doing so can be even more so. But at this stage, it’s worth considering whether the initial implementation cost will be balanced out by the future cost savings that automation provides. 

These costs include direct costs like purchasing software licenses, working with service providers for configuration and rollout, data infrastructure and governance, and ongoing maintenance, as well as the costs associated with employee training, software monitoring and support, and more. 

Businesses that require highly customised solutions can expect to pay an additional premium. These capital expenditures can be a difficult obstacle for companies to overcome if they are already operating on tight margins. 

Shifts in Employee Roles

As far as we are aware, automation hasn’t – as yet – resulted in the loss of “knowledge worker” jobs. In fact, a 2020 study  from the Wharton School at the University of Pennsylvania found that the companies that adopt automation increase their number of overall employees. This is due (most likely) because of the increases in productivity and revenue associated with automation. 

What does change however is the balance of employees. 

What we mean is – the number of managers in an organisation will most likely decrease because automated processes require less oversight. This means there’ll be a higher demand for high- and low-skilled staff members, and a decrease for middle-skilled staff members. 

Need for Reskilling and Training

As automation takes over certain tasks and shifts the types of roles that will be in demand, staff members may need some upskilling and reskilling in order to continue thriving in the workplace. 

And with all this upskilling and reskilling involved, there will naturally be a demand, no a need for the soft skills like relationship-building and effective communication – the things that automation cannot duplicate. 

Loss of Flexibility

While automation can be tailored to suit a specific firm or business’s needs – something we are proud to offer at AJS – there’s no denying that it removes a certain human touch from the equation. 

Why? Well, the chances of machine learning, AI or a chatbot picking up a client’s inflection in their voice when they like something, or the firms’ very specific nuances that make them special, is still very unlikely or at least improbable. This can lead to a client feeling rather frustrated when they have spent money for their legal accounting and practice management software to work “just so.” 

It’s safe to say that human involvement will still be needed. Similarly, customised approaches to specific tasks or processes will still require manual intervention aka humans. 

Limited Creativity 

Automation can limit creativity and innovation, as computers, machines are designed to follow specific instructions. It takes a human being, a person to think outside the box (or algorithm). It takes a person to apply their mind and come up with a brilliant new idea – to innovate. Your computer understands a process – any thinking beyond that spells a Terminator type Skynet taking humankind down scenario. 

Now that’s creativity. 

Human Interaction

We just can’t get away from it. 

As much as we try to limit humans from the equation so that we can rely “solely” on machines, automation still requires a certain degree of human interaction. We have proven that. 

Among other things, humans need to monitor the processes and ensure that all is working correctly. Humans also design the automation processes in the first place, ensuring   that all foreseeable scenarios are sufficiently accounted for. 

This can require a lot of foresight and a good understanding of what is needed in any particular situation. Especially where understanding nuance is required. 

And this all requires a human being. 

Maintenance and Repairs 

Automated machines require regular maintenance and repairs. They are machines, after all. 

This can be costly and time-consuming. There will also be the associative cost of downtime when the machines are maintained and repaired. You simply won’t get away from this. But perhaps the cost of maintenance is something that can be agreed upon with a human at the right service provider for you.  

As you can see, there are several less favourable considerations to keep in mind when looking to automate your practice. Some things can be helped – like human interaction. More of an effort can be made to ensure that staff members interact, that staff members are trained as is necessary, that staff members feel incorporated into the firm. Most importantly, for those staff members who have had a role change, it’s important that their position within the firm be reiterated and that their roles are redefined in a way that makes sense to them. 

Automation can represent a major learning curve within your practice, in particular for those team members that are directly involved with designing automated processes. And that shouldn’t be ignored. It’s important to ensure that everyone adjusting to the changes that automation can introduce feel safe, feel protected and feel like they are part and parcel of your team. 

As for cost – well that is something that you will need to assess from two points of view – 

1.         Can you afford to absorb it as part of your operating expenses?

2.         If you don’t automate, what will it cost you later on down the road when all your competitors have automated, and you haven’t? 

Because at the end of the day – automation is here to stay. It’s helping businesses in all industries. It’s making things cost effective, affordable, efficient, with less human error and ready in less time. You simply cannot beat that. There’s one word of caution we want to make – don’t allow the pressure to automate take away from the very work you are an expert at. Be sure you are automating for the right reasons and not only because it’s a client’s expectation. 

In the meantime, if you are ready to incorporate a new tool into your existing accounting and practice management suite, or if you need to start from scratch, take a look at what AJS has to offer – we have the right combination of systems, resources and business partnerships to assist you with incorporating supportive legal technology into your practice. Effortlessly.

AJS is always here to help you, wherever and whenever possible!

– Written by Alicia Koch on behalf of AJS

(Sources used and to whom we owe thanks: Schafer; Emeritus; WLP; Futurelearn and Macrometa)