The rapid advancement of automation, artificial intelligence, and other disruptive technologies is transforming nearly every aspect of our lives.
As these innovations grow more sophisticated and our world becomes increasingly connected, businesses across all industries—from automotive manufacturing and agriculture to legal services—are feeling the pressure to integrate new solutions and develop their own technological applications.
With our rising dependence on intelligent systems, what does the future hold? Could we eventually reach an AI singularity, where machines become so advanced that human labour is no longer necessary, allowing us to rethink how we spend our time and allocate the planet’s resources?
Perhaps. But for now, most technological advancements remain focused on specific applications—enhancing or automating human capabilities to solve particular challenges, often with practical business implications.
With countless applications being explored across industries by diverse teams, we are in a remarkable era of experimentation, and the legal sector is no exception. Learn more about emerging lawtech and how it’s revolutionising litigation funding.
What is lawtech? An overview
Lawtech refers to the use of emerging technologies in the legal sector, designed to enhance the delivery of legal services and improve the efficiency of the justice system.
Also known as legal tech, this field includes several key technologies:
Automation
Automation involves leveraging technology to complete tasks, such as scanning documents for relevant terms and organising them efficiently. It enables the rapid and accurate analysis of large datasets, identifying patterns or anomalies far more effectively than a human could. Currently, automation is primarily applied to routine and predictable processes.
Artificial intelligence
AI refers to computer systems that mimic human intelligence or perform tasks typically associated with it. A common example is chatbots, which use natural language processing to interpret and respond to human queries in a more intuitive way.
Machine learning
A subset of AI, machine learning allows systems to improve over time through experience. These algorithms can detect patterns in data and apply them to new scenarios, continuously refining their accuracy. Current applications of machine learning include speech and facial recognition, as well as predictive analytics.
James Scragg, Co-Founder at VWM Capital, highlights the transformative potential of these technologies:
“The possibilities are vast, and we’re only beginning to tap into what these innovations can achieve in our industry. VWM Capital is proudly ahead of the curve, using the incredible power of AI to optimise every stage of the funding process – delivering better outcomes for all involved.”
What benefits does lawtech provide?
Lawtech offers numerous advantages that are reshaping the legal landscape. Key benefits include:
Greater accuracy
Computers process information systematically with a high degree of precision, minimising human error. At VWM Capital, our AI-hardcoded model allows us to enter any market and assess a high number of claims rapidly, cherry-picking those with the highest chances of success for funding.
Improved efficiency
AI-powered tools can analyse vast amounts of data in record time, streamlining tasks such as legal research and document review. For example, in-house legal teams at companies like Unilever have reported saving an average of 30 minutes daily per lawyer by integrating AI tools into their workflows.
Cost reduction
By enhancing accuracy and efficiency, lawtech contributes to substantial cost savings. These savings can then be invested elsewhere.
Increased job satisfaction
As in other sectors, lawtech applications are likely to replace staff functions at lower levels as they target repetitive tasks such as administration. Rather than displace human workers, however, the hope is that human jobs will become more rewarding with these mundane tasks done for them.
Better legal outcomes
The combination of improved accuracy, efficiency, and cost-effectiveness contributes to better legal outcomes for clients. With more precise and timely information, legal professionals can make better-informed decisions, ultimately benefiting their clients.
Enhanced access to justice
We’re already seeing specific innovative applications of algorithmic technology in the litigation funding sector. These systems are able to analyse vast volumes of case data and case history to improve the identification of cases with a strong probability of winning.
This means that funders can confidently assist with cases of any size, including class action lawsuits that wouldn’t be possible without third-party financial support.
Lawtech applications in litigation funding
At VWM Capital, we harness AI for smarter legal finance, fusing lawtech with human expertise to improve every aspect of our service:
Scale
AI allows us to scale legal funding operations by streamlining processes and reducing costs.
Accuracy, efficiency, and returns
With the help of lawtech, accuracy and efficiency are vastly improved for the whole legal funding lifecycle. We can provide market-leading post-funding and auditing services, plus AI-powered portfolio management puts real-time data and insights in the hands of investment managers.
Risk management
We use AI in our case selection process to accurately select the cases with the highest chances of success and minimise risk. It also revolutionises our post-funding processes, and our ability to check and audit every funded case.
“No one understands lawtech quite like VWM Capital. It’s our mission to prove just how powerful it can be, and forge a better future for litigation funding in the process.”
James Scragg, Co-Founder, VWM Capital
The future of lawtech and litigation funding
In the 2024 International Bar Association report, The Future is Now: Artificial Intelligence and the Legal Profession, IBA President Almudena Arpón de Mendívil Aldama emphasised the undeniable impact of AI on the legal sector. She highlighted that, just as the internet revolutionised our lives and work, AI is poised to have an even greater influence on the legal profession and society as a whole.
As investment in the sector increases and technology becomes more powerful, applications within the legal sector are expected to expand into numerous areas. With this growing reliance on AI systems, it becomes crucial to ensure these tools are robust, reliable, and grounded in sound principles, free from unwanted bias. The ethical considerations surrounding AI and the need to ensure these systems operate in alignment with our values are anticipated to become the areas under most scrutiny.
In the litigation funding sector, lawtech applications offer significant benefits and open up exciting possibilities for funders, clients, and investors alike. As the market continues to grow, it will be intriguing to observe how the sector addresses these challenges.
“Rather than displacing human workers, I believe AI will create a shift in the nature of the work we do in the sector. We’ll likely see the emergence of new roles focusing on human skills such as empathy and ethics, and an increase in demand for training in technology oversight roles. At VWM Capital, while we’ve developed an AI-powered model that improves every stage of the legal funding process, we still lean on human expertise when required – such as seeking expert legal opinions on short-listed cases.”
James Scragg, Co-Founder, VWM Capital
Smarter legal finance is here
VWM Capital is spearheading change in the litigation funding space, using emerging technology to improve outcomes for our clients.
We finance a wide range of litigation claims for law firms, businesses, and individuals – from routine disputes all the way up to class action lawsuits. Our AI-driven approach puts us in the best possible position for success, streamlining processes, maximising accuracy, and minimising risk.
If you’d like to find out more about our funding options and what makes VWM Capital different, get in touch with a member of the team.