Technology and regulation


Click here for the latest paper/podcast – updated 22 October 2019


Background

In its business plan 19/20, The LSB introduced a new policy objective focused on ensuring that regulation keeps pace with technological innovation. Projects being undertaken to deliver this objective are detailed below:

New technological innovations, including artificial intelligence applications like algorithmic decision-making, automated document assembly, and chatbots as well as other developments such as blockchain, have the potential to transform how legal services are provided, including making them more accessible and cheaper for consumers, but they also create risks for consumers and providers.

In November 2018, the LSB published a research report entitled Technology and Innovation in Legal Services which found that legal services providers want to make use of technological innovations, but many do not because of real, or perceived, regulatory, ethical and practical risks.

It will be up to the legal service regulators to anticipate and respond to the risks raised by new technologies so that legal service providers can use them to deliver better services to consumers.

As part of fulfilling its commitments in its current Strategy and Business Plan, the LSB is undertaking the following projects to assist the regulators in this work.


Developing approaches to regulation for the use of technology in legal services

We’re developing a new resource of information and advice for legal services regulators to use as they develop their respective approaches to technology regulation that meet the needs of the professions and consumers. To do this, we’ve invited experts in legal services and technology – including academics, legal professionals, and tech specialists – to contribute their views on these issues.

Over the next year, these experts will submit papers examining a range of topics regulators will need to consider. To complement these papers, each will sit down to talk to us about their findings in ‘Talking Tech’, the new LSB podcast.

The first two papers and the episodes of ‘Talking Tech’ that accompany them are available now. Read the papers and listen to the interviews with their authors below. ‘Talking Tech’ is also available on iTunes, Spotify and Amazon’s Alexa.

Further instalments of the series will be released later this summer, with topics including: blockchain, the impact of technology on legal education, and the impact of technology on the regulatory framework created by the Legal Services Act 2007.

NB: The views expressed in these papers and podcasts are those of the authors, and do not represent the views of the Legal Services Board. The Board will respond to the papers upon conclusion of the project in early 2020.

 


Part 1: Alison Hook: Lessons from abroad – international approaches to regulating legal technology

About this paper 

The paper explores the adoption of legal technology in key jurisdictions and how legal regulators are responding, before looking for possible lessons from other sectors. The report concludes with some recommendations addressed both to the LSB and the frontline legal regulators in England and Wales. The paper is accompanied by a podcast which is available below.

The Use and Regulation of Technology in the Legal Sector beyond England and Wales – Alison Hook [PDF]

Podcast transcript: Talking Tech part 1: Lessons from abroad

About Alison Hook

Alison is the co-founder of Hook Tangaza following the merger of Hook International and Tangaza Advisory Services in 2016. Alison leads on Hook Tangaza’s technical assistance, trade and regulatory work.

Before setting up Hook International in 2011, Alison was the Director of International at the Law Society of England and Wales where she played a leading role in advocating for more open legal markets and working with government to develop an export promotion strategy for UK legal services.

Earlier in her career, Alison worked for the European Commission, both in London and Brussels and for the Foreign and Commonwealth Office in London and Lagos. She graduated in economics from the University of Edinburgh and holds a Masters in Economics from Warwick University and an MBA from the Open University.


Part 2: Professor Roger Brownsword: What can legal services regulators learn from medicine and finance?

About this paper

This paper considers how regulators in professional services sectors other than law, particularly health and financial services, are regulating new technologies used to deliver consumer services, and what lessons legal services regulators can learn from their experience.

The paper is accompanied by a podcast which is available below.

The Regulation of New Technologies in Professional Service Sectors in the United Kingdom: Key Issues and Comparative Lessons [PDF]

 

Podcast Transcript: Talking Tech episode 2: What can legal services learn from medicine and finance

About Roger Brownsword

Roger Brownsword holds professorial positions in Law at King’s College London and Bournemouth University, and he is an honorary Professor in Law at the University of Sheffield.

His many publications in the area of law and technology include Law and Human Genetics: Regulating a Revolution (Hart, 1998) (co-edited with W.R. Cornish, and M Llewelyn), Human Dignity in Bioethics and Biolaw (OUP, 2001) (with Deryck Beyleveld), Rights, Regulation and the Technological Revolution (OUP, 2008), Regulating Technologies (Hart, 2008) (co-edited with Karen Yeung), Law and the Technologies of the Twenty-First Century (CUP, 2012) (with Morag Goodwin), the Oxford Handbook on Law, Regulation and Technology (OUP, 2017) (co-edited with Eloise Scotford and Karen Yeung), and Law, Technology and Society: Re-imagining the Regulatory Environment (Routledge, 2019).

He is the founding general editor (with Han Somsen) of Law, Innovation and Technology; and he has been a specialist adviser to parliamentary committees as well as being a member of various committees, research groups, and working parties focusing on aspects of law and technology, most recently the Royal Society Working Party on Machine Learning.

 


Part 3: Professor Noel Semple: ‘Tending the Flame: Technology and the Legal Services Act 2007’

About this paper

This paper considers the different types of challenges that technological innovation poses to the Legal Services Act 2007’s regulatory framework, and whether the framework is capable of supporting technological innovation that benefits consumers while also addressing the risks it poses to them.

The paper makes some recommendations about how the current regime could be adapted to better address these challenges, but its overall conclusion is that the LSA regime remains capable, for the time being, of responding to them.

The paper is accompanied by a podcast which is available below.

Tending the Flame: Technological Innovation and the Legal Services Act Regime (PDF)

 

Podcast Transcript: Talking Tech episode three: Technology and the Legal Services Act

About Noel Semple

Noel Semple is Associate Professor at the University of Windsor Faculty of Law. He studies access to justice.  His work asks how the law and legal institutions work in real life, and it aspires to improve their ability to do so. Empirical research (both quantitative and qualitative) and policy analysis are key tools in his scholarship. He draws upon and seeks to contribute to the law and society and empirical legal studies traditions. He teaches and writes in the fields of civil dispute resolution, legal ethics and professionalism, and family law.

Noel’s work has appeared in the International Journal of the Legal Profession, Osgoode Hall Law Journal, the Canadian Journal of Women and the Law, and the Family Court Review, among other journals. He has taught Legal Process at the University of Toronto Faculty of Law, and Children and the Law at the University of Western Ontario Faculty of Law.


Part 4: Dr Anna Donovan: Blockchain: Developing Regulatory Approaches for the Use of Technology in Legal Services

About this paper

This paper charts the evolution of blockchain and other distributed ledger technologies as tools for radically simplifying common legal tasks such as identity verification and contract fulfilment.

The paper is accompanied by a podcast which is available below.

Blockchain – Developing Regulatory Approaches for the Use of Technology in Legal Services [PDF]

Podcast Transcript: Talking Tech episode four: Reacting to new technologies: Blockchain

About Dr Anna Donovan

Anna Donovan is the inaugural Vice Dean (Innovation) at the Faculty of Laws, University College London and is also a member of the UCL Centre for Blockchain Technologies. Anna is a member of the UK LawTech Delivery Panel where she chairs the Education Taskforce. Anna regularly advises global law firms, tech companies and financial organisations on the adoption and regulation of LawTech and distributed ledger technologies, with a particular focus on smart contracts. Anna is currently a member of the BSI Steering Group developing industry standards for the utilisation of smart contracts. Anna is a qualified solicitor in England and Wales (currently non-practising), having spent eight years in corporate practice prior to academia. Anna is also admitted as an attorney-at-law in New York.


Further information

For more information on this project, please contact the project manager, David Fowlis.


Promoting the wider use of regulatory sandboxes

In addition to the work described above , in 2019/20 we will also be undertaking a project to promote the wider use of ‘sandboxes’ by sector regulators. Sandboxes are a way for regulators to create a ‘safe space’ where providers  can develop  their innovations and test them with real consumers under the regulators’ supervision. Further details of this project are forthcoming.