You might’ve started to hear the term “NewLaw” quite often now, right? Surprisingly, this concept has been around since 2013, when Eric Chin, a U.S.-based attorney, currently serving as principal consultant in legal innovation, legal technology, and strategy, coined it.
Generally speaking, almost every law firm claims to be NewLaw as we’re entering the digital era. That’s because businesses, whether software houses, marketing agencies, E-commerce or law firms, are automating most of their tasks. Automation requires technology, and it obviously makes life much easier. Businesses start producing better results at lower expense, and teams have less workload to manage.
But why are we talking about automation and technology? Well, NewLaw is kind of a similar concept.
So, What is NewLaw?
Let’s hear it from Eric Chin himself. In an interview with JosefLegal, Eric described his vision behind NewLaw. Here’s what he said:
“As I originally conceived it, the NewLaw business model describes the businesses that use labour arbitrage at the centre of their business model in the delivery of legal services. Some of the examples of this, of course, include legal process outsourcing firms, lawyer secondment firms and fixed fees legal service firms that leverage on-demand lawyers.“
In simple terms, NewLaw is a method of delivering legal services that differs from traditional law firms. Instead of only using lawyers in offices, it can include things like:
- Legal process outsourcing companies, such as HazenTech Inc.
- Virtual legal assistants
- Technology-driven platforms for contracts and compliance
- Alternative law firms that work on fixed fees, not billable hours
Essentially, NewLaw refers to new models of delivering legal work. It’s faster, cheaper, and often works with the help of technology or outsourced teams, rather than relying solely on the traditional law firm model.
So, if we classify the use of technology in running a law firm, that leaves us with five areas:
- Winning clients
- Managing the workload
- Carrying out operations
- Controlling security risk
- Gaining insights
Winning Clients
Traditionally, law firms relied heavily on physical marketing. i.e. mainly depending on personal connections, establishing relations, grapevine marketing, and individual reputation.
NewLaw firms, on the other hand, market themselves like any other industry, utilizing digital marketing (SEO, email marketing, social media, PPC) and business development strategies (cold calling, market research, lead generation, etc.).
The key difference? Traditional firms wait for work to come to them, while NewLaw firms actively go out and capture it. They treat client acquisition as a business function. That’s why you’ll see NewLaw firms running targeted campaigns, tracking leads with CRMs, and measuring ROI on marketing efforts.
Managing Workload
Managing workload in traditional firms typically meant piling tasks on associates, manually tracking deadlines, and relying on late nights at the office. Ironically, it felt more like an endurance test than about efficiency.
NewLaw firms don’t work the old way. They lean on technology and outsourcing partners to handle repetitive, time-heavy tasks. Document review, legal research, e-filings, and case management can all be automated or delegated.
The result? Work gets done faster, with fewer errors, and without burning out teams. Instead of drowning in admin, NewLaw firms keep their people sharp for the actual legal battles.
Carrying Out Operations
Operations in traditional law firms were mostly about paperwork, physical files, and countless internal approvals. Things moved slowly because everything eventually depended on something.
NewLaw firms manage operations smartly. They’ve digitized case files, using cloud-based systems, and adopting legal project management tools. They’re handling tasks such as billing, scheduling, and compliance checks automatically, which also decreases the chances of human errors.
This not only speeds things up but also makes firms more transparent and client-friendly. Clients can access updates in real-time, rather than waiting weeks, which naturally builds trust and strengthens long-term relationships. Efficiency becomes part of the firm’s DNA.
Controlling Security Risks
Security has always been a concern for law firms, given the sensitive data they hold. Traditionally, that meant locked file cabinets and limited access to records. However, with NewLaw, security takes on a very different look.
Law firms now rely on encryption, multi-factor authentication, and advanced cybersecurity protocols to protect sensitive client information. Outsourced partners and cloud-based systems are monitored continuously to prevent breaches.
More importantly, compliance with data protection laws is built into every step of the process. NewLaw firms demonstrate to clients that their information is safer than ever by combining technology with strict risk management.
Gaining Insights
Traditional firms rarely looked at data beyond billable hours. Decisions were based on instinct, experience, or hierarchy. NewLaw firms, however, use analytics to gain insights that directly impact performance.
They track client behavior, measure case outcomes, and analyze time spent on different tasks. This data isn’t just for reporting; it helps predict trends, allocate resources, and improve client service.
Imagine knowing which cases are most profitable, which tasks eat up time, and which clients are most engaged. That’s the power of data-driven decision-making. With NewLaw, firms stop guessing and start making smarter moves backed by real numbers.
What's the Difference Between NewLaw and BigLaw?
Apart from NewLaw, there’s another term called BigLaw. Both of these are two sides of the legal industry, but they couldn’t be more different.
BigLaw firms have been around for decades. They offer high-end services to major corporations and affluent individuals and are known for their formal structure, long hours, and high billing rates.
On the other hand, NewLaw is the modern, tech-savvy alternative. It focuses on efficiency, cost-effective services, and flexibility. NewLaw firms often work with smaller businesses and startups, using technology to simplify processes and provide affordable legal solutions.
Here’s a list of the differences between NewLaw and BigLaw:
Aspect | NewLaw | BigLaw |
Business Model | Focuses on efficiency, flexibility, and technology-driven solutions. | Traditional, large-scale firms with a focus on premium legal services. |
Pricing Structure | Often offers flexible pricing, including fixed fees or subscription models. | Typically follows hourly billing, which can be high for clients. |
Work Environment | More collaborative, informal, and tech-driven with less hierarchy. | Formal, hierarchical structure with a focus on seniority. |
Client Base | Serves startups, SMEs, and tech companies with cost-effective solutions. | Caters to large corporations, high-net-worth individuals, and major industries. |
Technology Use | Heavy reliance on technology for efficiency and innovation (AI, automation). | Limited tech integration, mainly focusing on traditional legal methods. |
Work-Life Balance | More emphasis on flexible working hours and remote work options. | Often requires long hours and high pressure to meet client demands. |
Service Focus | Specializes in disruptive, emerging industries like tech and media. | Known for high-stakes corporate, litigation, and mergers and acquisitions (M&A). |
Role of ALSPs in NewLaw
Alternative Legal Service Providers (ALSPs) are companies that deliver specific legal services without being traditional law firms. They typically focus on tasks such as document review, compliance, research, e-discovery, or contract management.
So, in several ways, ALSPs represent the same philosophy that defines NewLaw. Both models break away from the traditional reliance on in-house lawyers and billable hours. Instead, they use specialized teams, technology, and cost-effective methods to deliver results faster.
ALSPs help law firms reduce workload, cut costs, and scale services without hiring full-time staff for every function. In simple words, they work like the manufacturing units of industries. Here’s how it works:
Client Onboarding > Attorney Client Meetings > Tasks Assigned to ALSPs > Execution of Tasks > Work Submission > Attorneys Handle Lawsuits
The tasks performed by ALSPs are mostly operational but highly critical in legal affairs. These include:
- Legal drafting
- Research
- E-filing
- Document processing
- CMS handling
- Inbox management
- Legal correspondence
- Legal assistance
Here’s how it helps Lawyers:
- Frees time
- Reduces effort
- Is cost-effective
- Increases accuracy
- Improves client satisfaction
- Is scalable
In practice, ALSPs are one of the strongest examples of NewLaw in action. They represent how legal services can be unbundled, outsourced, and delivered in smarter ways than the traditional law firm model ever allowed.
NewLaw Firms' Competitive Advantages
NewLaw firms have clear advantages over traditional law firms. Let’s take a look:
Speed and Transparency
Since NewLaw firms use tech, specifically AI, the speed of case processing remains really fast. Also, the entire work process stays transparent, keeps clients in the loop and ultimately builds their trust.
Higher Efficiency
When a law firm utilizes smarter ways, you can guess what happens next. Operations run smoothly, case backlogs become a thing of the past, clients onboarding increases and the law firm’s overall performance grows significantly.
Financial Balance
NewLaw firms balance finances using cost-effective methods. For instance, they would hire a legal process outsourcing company like HazenTech Inc. that charges a flat $10/hr fee. When comparing this with having an on-site team, you’re saving money on insurance, benefits, office space, stationery and all other expenses an on-site resource would want.
Specialized Expertise
Not every task needs a partner’s attention. ALSPs and tech platforms cover compliance, e-discovery, and document review, tasks handled by professionals who specialize in these areas.
Faster Growth
Traditional firms grow slowly because hiring takes time. NewLaw firms scale instantly by leveraging additional support through ALSPs and digital tools, expanding without overwhelming their teams.
Future of Law Firms
What’s the future of traditional law firms? Let’s take a look at some statistics:
- Law firms are changing fast. ALSPs and NewLaw models have pushed the legal world into new territory. Alternative Legal Service Providers hit a $28.5 billion market in 2023, up from $20.6 billion in 2021.
- More than 57% of corporate legal departments now use ALSPs for e-discovery, litigation support, and flexible resourcing.
- Large law firms aren’t behind. Approximately 87% report using ALSPs in at least one service category.
- The LegalTech market is growing, too. It was valued at USD 29.4 billion in 2024 and is expected to reach USD 62.1 billion by 2033, growing at a rate of ~8.7% annually.
- AI is making significant inroads: 21% of law firms currently use generative AI, and many more plan to do so.
So what’s the summary? The future is clear: firms that fail to adapt to technology, automation, and flexible provider models risk being left behind.
Summing Up
At its core, NewLaw is about delivering legal services more efficiently, cost-effectively, and intelligently. This means outsourcing routine work to ALSPs, utilizing tech platforms for contracts and compliance, and transitioning away from billable hours toward predictable pricing models.
We broke it down into five areas: winning clients, managing workload, carrying out operations, controlling security risks, and gaining insights. In every area, NewLaw firms outperform BigLaw because they treat law like a modern business, not an old institution.
The numbers prove it: ALSPs are now a $28.5 billion market, and more than half of corporate legal departments rely on them. The future of law is already here, and it looks a lot like NewLaw.
