By Pablo Yannone Sancho, Journalist at GLTH
Andrés knows both sides very well. He began his professional career as a lawyer in traditional law firms. Then, he turned into internal legal positions as in-house counsel in legal departments, assuming the task of purchasing legal services that used to bring him many visities of law firms that were trying to get him as a client. “They told me what great they were, the kind of experience they had and the kind of specific technical knowledge they could have”, says Andrés, “but usually the final outcome was that I was deciding on which law firm to outsource mainly because of the relationship I had or not with that specific partner, is a matter of trust.”
That was almost 15 years ago when he decided to “build something different,” a new business model closely tied to legal tech. “The model was based on freelance lawyers working remotely, and in order to coordinate that work and ensure the quality of the outcomes and services meet our standards, we needed technology.” So, once they took notice of where the gaps were, they started to build, also, their own tools.
His experience in the legal and technology sector has provided him a very deepful vision of business in Latam, a vision that he is, nowadays, diving into the pages of what will become his next published book, the first book on legal innovation built and written in Latin America for the Latin American market! What a better source of knowledge than an exceptional Latam Legal Advisor? He is sharing with us some interesting facts. Don´t miss it!
Which is the state of legaltech adoption in Latam?
Andrés starts answering this question by erasing a very typical perception on how lawyers adopt technology in general: they are less reluctant than it is usually said. First of all, “lawyers have used technology for their productivity and efficiency since the beginning of the times where technology was available”, notes Andrés. “Probably not with the kind of depth that we would like to have”, he follows. “At the end, lawyers usually are the late majority in the traditional Garner adoption curve”, which means that lawyers “get into tech” but get “slower into tech”.
In the specific case of Latam the adoption is slower, since Andrés believes that “usually Latin America follows the steps that are developing other more developed markets, like the US or UK markets. And that's much more developed and where you find the bigger law firms too and most successful law firms in the world .”
So, if there would be a comparison among other jurisdictions in terms of adoption of, for example, GenAI, we would see, says Andrés, that “Latin America gets more an observer rather than basically leader in the curve or the adoption curve.” “But we are going to adopt it”, follows Andrés. “And that's the important thing. The main discussion is how fast we are going to adopt it.”
The adoption of technology brings an interesting discussion to the table, a discussion that affects all markets and all jurisdictions: the model of business in law.
The dilemma between differentiation and productivity
Andrés approaches the discussion of model business by phrasing Peter Drucker, who talked about efficiency and differentiation. Two different strategies that have taken divergent, yet sometimes complementary, paths, according to Andrés. “If your main concern is productivity, adopting technologies that reduce costs is key,” he explains, referring to tools like advanced databases and automation software that enable lawyers to work faster and at a lower cost.
He notes that this approach is particularly useful for lawyers handling large volumes of routine tasks, where competing on cost is the priority. However, he points out that another group of lawyers focuses on differentiation, offering highly specialized and exclusive services, which allows them to charge premium rates. “Those competing through differentiation are less concerned with productivity because their added value lies in their expertise or providing a highly personalized service,” he adds.
Despite this distinction, Andrés warns that even lawyers focused on differentiation need to pay attention to their costs. “I can be a top-tier lawyer with only a few clients and charge very high fees, but if I don't manage my production costs, I’ll eventually face problems,” he explains, highlighting the importance of balancing both models.
Ultimately, the decision on which approach to follow depends on the strategic pillar of each law firm. “It doesn't mean you completely disregard one aspect,” he concludes, “but it’s crucial to define whether your main value comes from efficiency or differentiation.” Having this clarity will help law firms better navigate an increasingly competitive and technology-driven market. And having this clarity depends on data, which opens another controversial discussion: if we do not have data, which sometimes is the case of Latam, how can we make good decisions?
“We have a lot of asymmetries of information that don't help for a good analysis in this regard,” he explains. The main core issue remains: many law firms in the region still rely on outdated business models that take advantage of an immature and under-informed market.
This reliance on market immaturity creates a cycle where firms offer low-cost services with limited differentiation. As Andrés puts it, “If we have asymmetries of information, you can try to differentiate, but in the end, your products or services are low-hanging fruits in a low-cost model.” Essentially, the value proposition in these cases becomes more about providing routine, business-as-usual support rather than engaging in more sophisticated legal work.
Andrés notes that many law firms prioritize these types of commodity services, where the legal work is not highly technical or specialized. For many firms, “a relevant part of their business is business-as-usual support,” he recalls partners stating in previous conversations. This dependency on routine services means that higher margins and profitability often come from areas where firms can manage to differentiate themselves, typically outside of the low-cost, standardized work.
A recent trend in Latin America is that in-house legal departments have begun to take over a large portion of these routine tasks by using technology and developing their own teams. This has led many law firms to lose part of their core business, as companies seek internal efficiency to handle repetitive legal tasks. “In-house teams have become much more sophisticated because they have a deeper understanding of the business,” Andrés points out, which means that firms now only receive more complex or specialized work.
This trend has put pressure on the Latin American market, which has historically been less developed in terms of technological adoption and sophisticated segmentation. Nevertheless, Andrés highlights that this phenomenon is driving change. The future of law in Latin America, according to Andrés, will depend on addressing these asymmetries and evolving beyond simple business models.
A little bit about Andrés' background
At 44 years old, Andrés has dedicated his career to pushing the boundaries of the legal industry, driven by a passion to challenge the traditional norms of law practice. His mission is clear: to transform the legal ecosystem in his region and beyond. “My purpose, what motivates me every morning, where I put my passion, is to try to contribute in some way to the market to change things,” he says. Disillusioned by the conventional ways of law, he strives to create a more innovative, sustainable, and forward-thinking legal environment.
Andrés’ journey into law started with a genuine love for the subject. “I really enjoyed studying law. I was a good student, I got good grades, so I was happy studying my degree,” he recalls. However, once he entered the professional world, he quickly noticed the pressures and challenges faced by lawyers, including the overwhelming stress of the profession. Rather than accepting this as the norm, he saw an opportunity for change. “It's very stressful. I don't like it. So I probably tried to make changes in that as well.”
His work now focuses on the broader impact that lawyers can have on their communities and society as a whole. “I came to the conviction that lawyers can impact their communities, society in general, from a much broader perspective than we are used to,” he explains. Through his leadership in legal technology groups, writing a book, and participating in global conferences, he has become a vocal advocate for innovation within the legal field.
For Andrés, the future of law is not just about legal expertise but about shaping a healthier, more adaptable, and impactful profession. He continues to challenge the status quo, driven by a deep belief in the power of legal professionals to create lasting societal change. “That's my dream,” he says simply, embodying a vision of law that is as forward-thinking as it is transformative.
Founder, Alster Legal
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