How The Big Four Are Using Technology in Legal Services to Reshape the Industry

How The Big Four Are Using Technology in Legal Services to Reshape the Industry

According to an article by Bloomberg Law, the increasing role of technology in legal services is reshaping corporate legal work, with accounting’s Big Four firms emerging as serious competitors to traditional law firms.

In the article, Stuart Bedford, KPMG’s global head of legal services, predicts that corporations will increasingly turn to these firms due to their technological capabilities, particularly in managing vast datasets and streamlining contract integration post-mergers. The Big Four’s ability to apply advanced data extraction and analytics to unstructured legal documents positions them well for large-scale legal operations, creating competition in areas where efficiency and scale are paramount.

KPMG is leading this charge in the US, seeking approval from the Arizona Supreme Court to establish a legal services venture under the state’s alternative business structure (ABS) program, which permits non-lawyers to own law firms. This move signals a potential shift in the legal market, as Arizona’s regulatory approach opens the door for Big Four firms to expand into legal services. While KPMG claims its offerings will complement, rather than replace, those of traditional firms, there is an undeniable element of competitive displacement, particularly in cost-sensitive legal work.

The Big Four’s competitive advantage stems from their ability to reinvest profits into cutting-edge legal technology, an option not as readily available to traditional law firms operating under a partner-based profit distribution model. As a result, these firms are increasingly handling services such as post-merger integration, regulatory compliance, and supply chain reorientation at a lower cost and with greater efficiency.

Key Takeaways for Law Firms:

• Law firms must adapt to a legal market where technology plays a decisive role in large-scale corporate legal work.
• The Big Four’s entry into U.S. legal services, beginning with KPMG in Arizona, signals a shift toward alternative legal service providers.
• To remain competitive, firms should consider investing in technology in legal services and alternative service models, particularly in high-volume, data-intensive legal work.
• While specialized, high-value legal services will remain within Big Law’s domain, firms should explore collaborative opportunities to complement their expertise with technology-driven efficiencies.