What a legal tech demo does not show
14 hours ago
- #legal tech
- #vendor risk
- #technology procurement
- Half of unused features in a platform are discovered after six months, with poor support and costly change proposals.
- Vendor valuations, like 50x ARR for some legal AI firms, reflect growth bets not current value, creating buyer risk.
- Venture-backed companies have a 75% failure rate, suggesting many legal tech vendors may not survive in five years.
- Vendor lock-in risk occurs because implementing complex software involves significant investment, making switching costly.
- Firm size dictates risk appetite: small firms can experiment more easily, while large firms need ring-fenced pilots.
- Technology decisions are strategic, requiring scrutiny of vendor stability, direction, and personnel for partnership quality.
- Effective vendors answer tough strategic questions honestly, distinguishing true partners from marketing-driven suppliers.