Scottish Legal Review: Identifying areas of future growth and prosperity

In the months to come, Scottish lawyers are expecting green and clean energy to continue to offer business opportunities. Among other trends predicted for the legal sector are more investment in technology, including artificial intelligence (AI), and ongoing efforts to increase diversity in staff roles.

Andrew Blain, managing partner at Shepherd and Wedderburn, identifies clean energy as a key growth area, along with financial services, technology and life sciences. “Our market-leading clean energy team – with over 110 lawyers focused on this sector – is well-placed to take advantage of clean energy opportunities,” he says.

Robert Forman, partner in the built environment at Burges Salmon, comments: “With a Scottish landscape that sets up the UK very well for reaching net-zero, looking ahead there are huge opportunities for further growth in the built environment sector as Scotland looks to bolster its ports infrastructure to support the growth of its offshore wind capabilities.”

According to Murray McCall, managing partner at Anderson Strathern, Scotland – like all countries – needs to tackle the growing impact of climate change. “Whilst efforts are made to reduce emissions and decarbonise, from a legal standing we need to prepare for the impact of a changing climate on housing, farming, water and energy supply,” he explains.

Katie Russell, partner in the employment team at Burges Salmon | Burges Salmon

When it comes to technology, lawyers see both benefits and risks for companies.

Katie Russell, partner in the employment team at Burges Salmon, says: “Some employees will be reticent in leaping to embrace AI and their concerns are legitimate. Employers should consider how they will address this as a priority.

“One of the barriers may be that employees simply don’t know what the tech can do in precise enough detail.

“Employers should explain their strategy for how they intend to deploy AI, emphasising how it can enhance roles by removing or reducing mundane tasks and making sure their people understand, on a task-by-task basis, how it can be used to make their job more efficient and rewarding.”

Euan McSherry, partner and head of dispute resolution at Aberdein Considine, says: “AI and innovative litigation funding arrangements are the main opportunities open to the sector. The new litigation funding landscape in Scotland has been fantastic for SME clients, in particular. Through innovative funding measures, our clients have been able to pursue legitimate claims without the same upfront strain on their cash-flows, as well as group action and mediation, which is a process which is voluntary, private, informal, collaborative and confidential.

“At its best, mediation promotes collaborative engagement and sees a robust exploration of the perceived difficulties each party may face in a formal determination process such as at court or at arbitration. All of this takes place before parties have started down the path of litigation, a path lined with upfront costs and demands on client’s time, with an uncertain destination at the end and no deadline for arrival.

“A mediated resolution of a dispute can be more effective, more flexible and more durable than an order imposed on the parties. And a party can walk away from mediation, at any time, without the risk of an adverse expenses award being made against it.”

He also expects to see greater centralisation of Sheriff Court civil procedure and use of technology, with virtual courts here to stay.

And Magnus Miller, partner in the dispute resolution team at Burges Salmon, says: “We expect to see a rise in technology-driven solutions, particularly with the increase in the use of AI for document review and production which will further streamline the process and make it more cost-effective. The integration of AI and digital platforms will play a crucial role in shaping the future landscape of dispute resolution in Scotland.”

Allan Wernham, managing director at CMS in Scotland, describes the rapid development of technology, led by AI, as a major opportunity for law firms over the next year. But he adds that this also brings challenges in terms of the scale of investment needed. “Bigger firms like ours are investing heavily. For some time we have been deploying machine learning technology to reduce the hours spent on traditionally time-intensive activities, such as due diligence, giving our people more time to add value where it really matters. Moving forward, as we embed new technologies on a day-to-day basis, we see lots of potential to further improve efficiencies in service delivery,” he explains.

McCall says: “AI is the biggest talking point, but everyone is feeling their way. The tech is still being piloted and lawyers remain naturally cautious about potential risks and unintended consequences. That said, it cannot be ignored and will revolutionise many areas of work when used correctly. We must ensure that the tools we develop produce accurate outcomes and do not compromise client data security.”

Turning to the make-up of the legal sector workforce, Blain says that, in common with many law firms, Shepherd and Wedderburn recognises there is more to be done on diversity.

“We strive to uphold our commitment to diversity and inclusion in all aspects of our business, including how we treat our employees, interact with our clients, and engage with our communities,” Blain says. “We take pride in fostering an environment in which individuals from all backgrounds feel welcome and are given the opportunity to thrive. We have built this environment by ensuring commitment to behaviours, processes and procedures that support diversity throughout the firm.”

He adds that a key initiative this year was the launch of a virtual legal work experience programme through the Forage platform. According to Blain, this has expanded the firm’s reach, enabling more students to gain skills and experience. He says this is of particular benefit to those living in more remote locations, or who are from lower socioeconomic backgrounds and find attending traditional work experience and gaining access to the legal profession more challenging.

Wernham says: “A working environment which enables people to be themselves is a happier, more stable and more productive one.”

He explains that the CMS Scholarship programme, which supports pupils whose economic circumstances can be a barrier to pursuing a legal career, was set up to help increase diversity. But he says there is a wider need to improve routes to qualification across the profession and improve access to underrepresented communities.

Claire Armstrong, managing partner Scotland at Dentons, says social mobility continues to be a concern for the sector, although The LawScot Foundation is helping.

“We have teamed up with The LawScot Foundation to help drive this forward. In addition to sponsorship, a number of our people across the firm are mentors to the students,” explains Armstrong.

“Diversity, in terms of ethnicity and disability, continues to be a challenge in Scotland, and we need to be better at being truly inclusive and diverse and consider it beyond gender.”