The LegalTech Ecosystem in Wales

Despite all these positive examples, there appear to be two main obstacles to greater collaboration and coordination in the sector: (i) the need for a joined-up approach to the Welsh legal ecosystem, involving all the relevant stakeholders, and (ii) the challenges presented by a sector characterised by a preponderance of small firms, which may lack capacity for sustained engagement and retain a strong individual identity. The first obstacle was directly addressed by the creation of the Law Council of Wales in 2022, defined by its constitution as “a forum for the legal sector to come together to deliberate and act on common issues affecting the legal sector in Wales 56 ”, including “[d]eveloping a collective approach to the economic development of the legal sector in Wales to promote the sector and facilitate its growth and sustainability 57 ”. The establishment of the Law Council of Wales was recommended by the Thomas Commission 58 and its executive committee consists of prominent members of the legal sector in Wales including members of the judiciary, academics, practising legal professionals and various legal organisations. The Council’s work to date involves establishing working groups in the areas of legal education and training and legal services. 59 The second obstacle appears to be more challenging to address, although the technological transformation that the sector is undergoing appears to provide a strong opportunity for greater collaboration, as discussed later in this report. c) Advice deserts With a significant percentage of Wales’ legal services focused around Cardiff and Swansea, and the significant cuts to Legal Aid funding since 2012, this is thought to have contributed to an ‘advice desert’ in rural and post-industrial areas of Wales. As these areas tend to be more traditional ‘high street’ firms dealing in civil, family and criminal matters where Legal Aid funding has been dramatically reduced, this has led to fewer viable legal practices and a barrier to accessing justice for consumers. 60 The level of Legal Aid spent in Wales has fallen from £113.60m in 2011/2012 to £80.14m in 2018/19. 61 d) Slow adoption of legal technology Legal technology has been highlighted as an area which particularly requires increased awareness, guidance and training in Wales. 62 The Jomati report found that “the country’s LegalTech and online legal services market barely exists at all 63 ”. The finding was echoed by the Thomas Commission, which recommended that “Welsh Government should provide strong support for investment in technology 64 ”, 56 Law Council of Wales, Law Council of Wales Constitution (31 January 2022), Schedule 1, available at https://www.lawcouncil.wales/_files/ugd/d065c0_be44ef1850e74c679e5359dae3136d39.pdf. 57 Ibid. 58 The Commission on Justice in Wales (n 1), recommendation 65 (p. 26). 59 Emma Waddingham, “A Forum for a Resilient, Relevant and Accessible Legal Sector in Wales” (Legal News Wales, 4 July 2022), available at https://www.legalnewswales.com/features/a-forum-for-a-resilient-relevant-accessible-legal-sector-in-wales/. 60 The Commission on Justice in Wales (n 1), paras. 9.70-9.71. 61 Ibid, para 2.103. 62 Jomati report (n 3), 112. 63 Ibid, 6. 64 The Commission on Justice in Wales (n33) 403

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