AI Responsibly with ndMAX
Picture it: A sudden power outage shuts down the firm’s on-site servers, leaving lawyers without access to critical files. Even with battery backup, it’s a race to get to content before things completely shut down. Without cloud backup, valuable data may be inaccessible or even lost.
For IT administrators, minimizing downtime and providing lawyers with the tools they need to deliver exceptional client services is a requirement. As your small law firm grows, lawyers’ and clients’ technology requirements will become increasingly sophisticated. Does your current on-premises system have what it takes to keep up?
On-premises systems are expensive, difficult to maintain, limit legal teams’ capabilities, and lack the scalability necessary for modern practices. Transitioning to cloud-based solutions and integrating advanced AI capabilities might be the key to success. Here’s why legal IT professionals should embrace the cloud and AI.
On-premises document management systems (DMS) heavily burden IT admins at small law firms. In addition to the cost of the equipment and licensing, these systems require constant maintenance, frequent updates, and costly physical infrastructure to keep the firm’s intellectual property and confidential client data protected. They also hinder a firm's ability to scale and adapt to evolving business needs, and may also increase insurance costs, especially given how costly cyber insurance has become.
This is further exacerbated by the fact that most on-premises DMS platforms are quite old now. Most of the on-premises versions are no longer even updated or supported by the companies that created them. Their aging indexing systems that enable limited search capabilities can be very problematic for IT in that they have to be restarted and babied so that they remain functional and useful to legal teams.
For Richard and Richard P.A., their on-prem system was inefficient for managing complex litigation. Limited functionality and data storage forced them to use third-party tools, slowing operations and requiring constant troubleshooting. The firm eliminated costly hardware after transitioning to NetDocuments, a cloud-based DMS. It freed the IT team from daily technical issues, allowing them to focus on strategic improvements.
As firms grow or case needs demand increased storage, scaling on-premises systems only increases complexity and costs. Cloud computing (i.e., a cloud-based DMS) offers flexible, scalable solutions that eliminate these barriers. This allows cloud-based law firms to focus on innovation rather than routine maintenance and security.
Almost 4 in 10 law firms report that they have experienced a security breach in the last year, and the consequences are very high. Law firms are well-known as high value targets for ransomware and other types of cyber-attacks, because they store a treasure trove of the most valuable kinds of data for numerous people and companies. Also, many firms aren’t even sure they would know if an attack had occurred. Know this: It is no longer a matter of when your firm will be attacked, but how severe the attack and losses you suffer will be.
Having your intellectual property and confidential client data in on-premises servers means that your IT team must be highly skilled at protecting your network and servers. Most small firm IT teams are wearing many hats and not able to devote full-time resources to network security. Therefore, placing this valuable content in a cloud-based DMS reduces the burden on the firm’s IT team and shifts it to the DMS provider.
Cloud-based DMS vendors spend lots of time, money, and effort on building the most secure vaults and systems to both protect and minimize losses across all of their customers’ data. No small firm is ever going to meet those levels of security. Things like two-factor authentication, encryption, warning systems that shut down suspicious activity as soon as it is detected, third-party security audits, and specific incident response plans protect firms from data loss when a cyber-attack is attempted.
Not only all of the above, but your cloud DMS vendor can provide assistance with security audits by clients or insurance providers that can be especially burdensome for an already maxed out IT team.
On-premises systems demand large investments in hardware, software, and personnel. As law
firms grow, these costs multiply, requiring additional servers, storage, and space, which strains budgets and IT resources.
In contrast, cloud-based software, offers a more cost-effective and scalable solution for small firms. Cloud solutions reduce overhead and provide the flexibility to scale operations quickly and efficiently, enabling law firms to meet the demands of modern legal practice without physical infrastructure constraints.
Barrila Law fully embraced a paperless, cloud-based operation, reducing costs related to printing and storage. This transition not only improved their productivity but also their work-life balance, as they could work remotely during power outages, ensuring continuity of operations.
Today, being able to work effectively from anywhere is not a nice to have, but a must have. Having cloud-based technology, means no more clunky, costly, and problematic remote desktop setups to support, and less IT calls on nights and weekends. Legal and admin teams simply login from anywhere using their Internet browser of choice, secure in the knowledge that their content is protected within the DMS. Even without lugging their firm laptop along on vacations, client emergencies are easily handled as content is even accessible on mobile devices.
Cloud technology paired with AI and automation provides a transformative solution that streamlines operations and significantly enhances productivity. With all roads leading to a document and their numerous complex document-based workflows, this is even more true for law firms. Let’s look at how AI-driven cloud tools built into the DMS are reshaping law firm technology.
Document management systems that are AI-powered cloud solutions can automate routine tasks, such as document generation, data extraction, and summarization, allowing IT admins and legal staff to focus on more strategic, high-value work. For example, at Common Ground Condo Law, automation tools helped streamline document creation, saving time and reducing drafting errors, as well as opening up new lines of client service. They have even been able to free up lawyer time by shifting some automated tasks to staff. Small firms can achieve considerable productivity gains by adopting AI-powered automation and increase their ability to service more clients or open up new lines of business.
As experienced by Barrila Law, transitioning to a cloud-based DMS offers law firms the flexibility to work remotely while enhancing collaboration and productivity. With secure access to documents from anywhere, attorneys can seamlessly share files and collaborate in real-time, ensuring that critical information is always at their fingertips, allowing firms to respond quickly to clients' needs regardless of their location. This modern approach not only supports a healthier work-life balance and opens up the ability to increase the number of remote staff, but also positions the firm as a forward-thinking leader for both employees and clients who expect their lawyer’s technology to be modern and comparable to what they use in their personal lives.
Having a simple tech foundation makes a big difference, as experienced by Common Ground Condo Law. Generative AI is rapidly developing and has brought about a number of brand-new, untested legal tech providers that do one or two things well. Investing in a single AI-enabled legal-specific DMS platform that provides a full set of robust generative AI tools with wide applicability to multiple workflows and practice areas is going to be much less expensive and complex than having to invest in and manage multiple point solutions. Additionally, with the DMS serving as the core information governance for a firm’s most important and sensitive data, as well as that of its clients, lawyers do not want to remove files from the protection of the DMS and upload them into other (frequently brand new) technology solutions. Not only does that increase risk, but it makes already complex workflows even more complicated. This added complexity and risk affects both end users and the IT team that has to support their technology needs.
Cloud platforms enhance team collaboration by allowing legal professionals to work on documents simultaneously — with both internal and external collaborators. With NetDocuments, for example, version control ensures that no edits are lost, and teams can track every change in real time, improving the speed and accuracy of case preparation. Legal teams can work together across locations without worrying about document conflicts or data loss.
As law firms expand, their IT infrastructure must be able to scale accordingly. Cloud platforms offer seamless scalability, allowing IT admins to adjust resources like storage or new tools as needed. By adopting cloud solutions, firms ensure they aren’t restricted by outdated systems that limit their ability to grow and evolve with the market.
AI-driven cloud solutions simplify searching and organizing legal documents, enabling firms to deliver timely and reliable advice to clients. Barrila Law saw improvements in client service by using AI-powered document management to quickly analyze large data sets, responding to client inquiries faster and more accurately. This level of service not only boosts client satisfaction but also positions the firm as a leader in legal innovation.
Clients are increasingly asking about security. Cloud platforms offer real-time threat detection and insights, allowing firms to manage security risks proactively. This was critical for Lee & Lee, a law firm that transitioned to cloud-based document management. The real-time monitoring tools helped them comply with strict data security standards while safeguarding sensitive client information. These tools give IT admins the confidence to address potential breaches before they happen and comply with client and insurer requirements, keeping the firm’s data secure.
Cloud computing integrated with AI reduces operational overhead by eliminating the need for expensive on-premises servers. For example, Richard and Richard P.A. realized immediate cost savings after transitioning to a cloud-based DMS, with AI tools automating previously manual tasks. This allowed the firm to manage budgets more effectively without sacrificing performance or efficiency. Additionally, with their vast network of integrations with third-party tools that lawyers rely upon, such as most legal practice management systems like Clio, a legal-specific cloud-based DMS can smooth out workflows and sometimes eliminate the need for other software altogether.
Lawyers, often resistant to adopting new technologies, see a direct impact on their ability to manage cases more effectively, which drives greater interest and enthusiasm in funding IT projects. The visible improvements, from automation that reduces time spent on routine tasks to AI-enhanced tools that streamline client work, foster a willingness among legal professionals to support and champion new technological initiatives. This positive feedback loop — where clear benefits lead to greater interest and investment in tech solutions — ensures continued support for IT advancements that ultimately improve firm performance and client outcomes.
Transitioning to a cloud-based DMS with AI integration may seem daunting. However, IT admins can lead smooth migration with the right approach. Here’s how:
To stay competitive in today’s legal landscape, moving your firm’s infrastructure to the cloud is essential. Traditional on-premises systems can’t keep up with the demands of modern legal practice. A cloud-based DMS with AI-powered capabilities will boost efficiency, enhance security, and enable real-time collaboration — positioning your firm for long-term success.
Now is the time to act. Transitioning to a cloud-based DMS not only cuts costs but unlocks the power of AI-driven automation and increased efficiency. It’s more than a tech upgrade — it’s a strategic decision that empowers your firm to scale, adapt, and lead in a rapidly changing market.
Start today and explore the NetDocuments cloud-based DMS that has built-in automation and AI tools to help drive smarter workflows, stronger client relationships, and sustainable growth.
