Legal Document Automation: The Complete Guide for 2025
Ready to change the way you handle legal paperwork? Legal document automation lets you simplify and streamline your firm's workflows.
Document automation tools help you increase productivity and ensure document consistency and accuracy. Imagine drafting contracts, agreements and other important papers in minutes rather than hours.
You can focus on other key tasks and eliminate the boring work. It's a no-brainer for any lawyer looking to become more efficient.
In this guide, you'll learn what legal document automation is, get five examples of legal practice management software and get to know what Erbis, a legal tech powerhouse, can do for your business.
Are you ready to take control and transform your legal processes?
Let's begin.
What is Legal Document Automation?
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Legal document automation includes using software to create and manage repetitive legal documents. According to Gitnux report, an automated document management system saves time and reduces human error by 32%.
It's best for records you need to update regularly or use in a consistent format.
How document automation works
Document automation streamlines document creation using predefined templates. You can design the template with a specific structure and placeholders for variable information.
You can enter information into the predefined fields within the template. The software automatically fills in the fields with the provided data.
The result is a fully completed document ready for use, ensuring consistency and saving time.
Types of automated legal documents
Automation can handle many types of documents. It can manage simple papers like employment contracts and non-disclosure agreements.
It can also handle more complex legal documents like court forms, settlement agreements and intellectual property records and make them compliant and up to date with the latest legal standards.
Benefits of document automation
One of the biggest benefits of document automation is cost savings. Removing manual work from routine tasks means lower operational expenses. According to Forrester research, businesses save over $1 million by automating workflows.
Read our guide to learn how to optimize costs with outsourced software development teams.
You can create first drafts 72% faster and streamline the entire document lifecycle, including approvals and e-signatures.
Automation lets you modernize your workflow and get more productive. The McKinsey report shows that automation reduces time spent on document-related tasks by 50%. Creating legal documents quickly means more efficient project management in the legal sector.
Legal document assembly software also keeps your data safe and secure, which is required for sensitive legal papers.
Automated document solutions help you do more work without compromising quality or speed if you want to grow your business or client base.
Offering efficient, tech-savvy services attracts clients who expect cost-efficient solutions to help them keep up with competitors already enjoying significant benefits from AI and automation.
The State of Legal Document Automation
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Legal document automation has advanced significantly in recent years, and the legal industry is reaping the benefits.
The legal document creation process has become more sophisticated and offers solutions that streamline workflows, reduce errors, and improve overall document creation and management efficiency.
Current trends and developments
Cloud-based: Many legal document automation platforms are now cloud-based, so you can access, collaborate and get real-time updates across teams.
Template libraries: Advanced systems have extensive templates for different legal documents, so you don’t have to create records from scratch.
Integration with existing systems: Document automation tools integrate with legal practice management software and document management systems.
Mobile access: With the rise of remote working, many platforms now have mobile apps or responsive designs for on-the-go document creation and editing.
Version control and audit trails: Modern systems have robust version control and audit trails, which make documents more secure and compliant.
E-signature: Many document automation tools now have built-in electronic signature functionality, streamlining the approval and execution process.
AI and Machine Learning
Artificial Intelligence (AI) and Machine Learning (ML) are becoming more prevalent in legal document automation and bring new levels of efficiency and accuracy to the process.
Natural Language Processing (NLP): AI-powered NLP allows systems to understand and interpret complex legal language, allowing you to create and analyze documents more accurately.
Predictive text and auto-completion: ML algorithms can suggest relevant clauses or paragraphs based on the created document, speeding up drafting.
Document review and analysis: AI can quickly scan and analyze large volumes of documents and identify potential issues or inconsistencies that human reviewers may miss.
Risk assessment: ML can assess the risk profile of contracts and other legal documents and flag areas of concern for review.
Automated contract management: AI-driven systems can monitor contract deadlines, renewal dates and compliance requirements so you don’t miss any obligations.
Continuous learning: As these systems process more documents, they become more accurate and efficient. They learn from each interaction to improve performance.
Customized document generation: AI can create highly personalized documents by analyzing vast data and tailoring content to client needs or jurisdictional requirements.
The integration of AI and ML in legal document automation is making things more efficient and allowing legal professionals to focus on higher-value tasks that require human expertise and judgment.
As these technologies improve, we will see even more advancements in the future, and the landscape of document creation and management will change even more.
Features of Modern Legal Document Automation Software
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Let’s explore some key features of contemporary legal document automation software in more detail.
Template creation and management
Modern legal document automation software provides a solid foundation for document production. Lawyers can:
Create standard templates for common documents
Update templates when the law or firm changes
Store and centralize templates for easy access
Many corporate law firms use templates for M&A deals.
They have a library of standard document templates like share purchase agreements, due diligence questionnaires and closing checklists.
These templates can be customized for each new deal in minutes, saving hours of drafting time and ensuring consistency across deals.
Data integration and population
Advanced document automation platforms integrate with existing systems and can auto-populate papers. This feature:
Pulls information from client management systems, databases and other sources
Reduces manual data entry, minimizes errors and saves time
Ensures documents have the most up-to-date and accurate information
Employment law firms connect their document automation systems to HR databases.
When drafting employment contracts, they pull in employee details, job descriptions and salary information to reduce the risk of mistakes in sensitive employee data.
Conditional logic and complex document assembly
Conditional logic allows for dynamic documents. This feature:
Changes documents based on specific input data or selected options
Includes or excludes clauses based on set criteria
Creates multi-scenario documents with minimal manual input
Estate planning lawyers use conditional logic.
When creating wills or trusts, the software changes clauses based on inputs like marital status, number of children or types of assets.
It allows for quickly creating highly personalized estate planning documents without manual editing.
Collaboration and workflow tools
Modern legal document automation software has good collaboration and workflow tools to simplify the document creation process. These tools:
Allow multiple users to work on a document at the same time
Assign tasks and track progress
Comment and feedback for the review process
Large litigation teams use collaboration features to manage complex class actions.
Multiple lawyers can work on different parts of a complaint simultaneously, with senior partners using workflow tools to assign tasks, review progress and provide feedback all within the same system.
E-signature integration
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E-signature integration is now a standard feature in most document automation software. This feature:
Secures digital signatures
Finalizes documents faster
Allows remote signing
For example, if a company needs to approve a major business decision quickly, such as a new funding round or a significant asset purchase, the corporate legal team can prepare the required resolutions, circulate them for e-signature, and execute them within hours rather than days or weeks.
Version control and audit trails
Version control and audit trails are essential for document integrity and transparency. These features:
Ensure users always get the latest version of a document
Provide a full history of all changes to a document
Track who changed a document and when
For example, IP law firms rely on this feature heavily as patents and trademarks can have long term value.
Years after filing, if questions arise about the origins of certain claims or descriptions, the firm can refer to the detailed history of the document's development.
Mobile access
Cloud-based solutions with mobile access are becoming more important in legal document automation. This feature allows lawyers to:
Access, review and edit documents anywhere
Respond to client requests
Work outside of office hours
Imagine a lawyer getting an urgent client request while out of the office.
With mobile access, they can review the relevant documents, make changes and even finalize agreements on their phone or tablet.
Five Examples of Legal Document Automation Software
Let’s share some legal document management software examples to illustrate the features we discussed above.
PandaDoc
PandaDoc is a document automation and electronic signature platform. It offers templates, workflow automation and electronic signatures.
Key features include document analytics, CRM integration, and a clause library. Lawyers get faster document creation, better collaboration and quicker client approval.
Briefpoint
Briefpoint is an AI-powered legal document automation software that streamlines the drafting of discovery responses and request documents for attorneys.
It provides AI-assisted drafting, customizable templates and integration with research platforms. Lawyers get time savings, fewer errors and can handle more complex legal work.
Clio
Clio is practice management software for law firms. It offers case management, time tracking, billing, client portals, document automation, integrations with other legal tools and mobile access.
Lawyers benefit from more organization, streamlined workflows, better client communication, and more productivity and profit.
HotDocs
HotDocs is document automation software that turns complex legal documents into interactive templates. It provides conditional logic, repeat loops and integration with case management systems.
Lawyers get faster document assembly, more accuracy and the ability to handle complex document scenarios.
Rally
Rally is a legal workflow automation platform that automates repetitive legal tasks. It provides document assembly, e-signatures and process automation. It integrates with no-code automation tools, analytics and other legal software.
Lawyers get less manual work, consistency in legal processes and data-driven insights to optimize their practice.
While pre-made solutions offer helpful features, they come with limitations:
Limited customization to firm-specific needs
Potential integration issues with existing systems
Ongoing subscription costs that add up
Generic features that don't address unique workflows
Dependence on third-party vendors for updates and support
Custom software development for law firms offers significant advantages:
Solutions tailored to firm-specific needs
Seamless integration with existing tools and databases
Long-term cost-effectiveness without recurring subscription fees
Scalability to grow with the firm's needs
Full control over features, security and data
Erbis is an expert legal tech company that knows how to automate legal documentation.
With in-depth industry knowledge, Erbis creates solutions that save time and help law firms grow without adding headcount.
Our bespoke approach means each solution is built for your firm's workflow and goals, giving you an edge.
How To Implement Legal Document Automation With Erbis
Erbis is your automation powerhouse for legal tasks and your tech partner for streamlining document workflows, saving time and eliminating manual errors. We help your team become more productive without hiring extra staff.
Our talented team creates custom solutions tailored to your requirements or integrates existing ones.
Our integrations with legal research databases and cloud apps ensure your team is efficient and updated with the latest information.
Our AI and ML integration does all the software preparation for you so your firm stays ahead of the competition.
We can help you create mobile applications for on-the-go document management. It gives you control and takes the workload off your staff.
Our cybersecurity solutions keep your data safe, minimize the risk and maximize data protection.
With software development outsourcing, you can expect expert project management, QA, and business analysis.
Choosing Erbis means partnering with professionals who provide custom software solutions across all platforms and valuable tech consultancy:
GRC and security
Document automation
Blockchain and smart contracts
Case and knowledge management
Tech solutions for legal research
With our dedicated support, Erbis collaborates closely with you to help you achieve your goals.
Say goodbye to manual document processing and let your team focus on strategy. With our expert-led approach, enjoy the benefits of speed and productivity.
How Erbis Saved a Law Firm 28800 Hours and €3.5M Annually
Our client, a leading law firm in Eastern Europe, was looking for a technical partner with AI-powered development, strong legal expertise, extensive experience working with law firms, and high security and compliance standards.
Erbis was the ideal choice because our CTO previously served as the Chief Innovation Officer at a top law firm, where he gained valuable insights into best legal practices. He quickly prepared software requirements documentation.
We saved this law firm 28800 hours and €3.5 million yearly.
Read our case study to learn how.
Legal Document Automation Best Practices
Here are some best practices to improve your document automation processes.
Standardize templates
Create standardized templates for frequently used documents to ensure consistency across your organization and simplify the automation process.
Use clear headings
Adopt a logical heading structure in your documents to improve readability and facilitate automated data extraction and navigation.
Conduct regular audits and updates
Conduct regular audits of your automated documents and update them as needed to maintain accuracy and relevance in a changing business environment.
Secure your data
Implement strong security measures to protect sensitive information in your automated documents. Key strategies include encryption, access controls, and compliance with data protection regulations.
Implement analytics
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Use analytics tools to monitor the performance of your document automation system and identify bottlenecks, usage patterns, and areas for improvement.
Establish a feedback loop
Create a system for users to provide feedback on automated documents and processes, encourage continuous improvement, and identify potential issues.
Establish naming conventions
Develop and enforce clear naming conventions for automated documents to improve organization and searchability.
Plan for disaster recovery
Create a comprehensive disaster recovery plan for your document automation system to protect against data loss and ensure business continuity.
Implement multi-language support
If operating in multiple regions, choose the right document automation software that supports various languages and localization needs.
Integrate document comparison tools
Incorporate document comparison tools to easily identify changes between different versions of automated documents.
These best practices help optimize your document automation processes, ensuring efficiency, security, and adaptability within your organization.
Calculating ROI of Legal Document Automation
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The most straightforward method of calculating ROI for document automation is:
ROI = (Savings - Investment) / Investment * 100%.
Start by tracking documents to see how long they take to process. Compare the time it takes to prepare documents before and after automation.
A good metric is the reduction in document preparation time. For example, law firms have reported up to 80% reductions in time spent on contract drafting.
Balance automation with human oversight by combining the speed of automation with the expertise of professionals. Have lawyers review automated documents to add an extra layer of assurance and catch issues technology might miss.
Tracking ROI helps you measure the value of your document automation investment and adjust as needed to improve efficiency and security.
Conclusion About Automated Legal Documents
Automated documents can speed up your workflow and make tasks easier. Getting rid of repetitive tasks helps you focus on growing your business.
Many law firms are now automating document processing due to:
Speed: Create documents faster, which is time you can use for more important things
Accuracy: Automation reduces errors compared to manual drafting and delivers better output
Consistency: Using templates keeps all documents aligned and professional
Automated legal documents help you serve your clients better. Faster document turnaround times mean happier clients and an edge over the competition.
To start your automation journey, identify areas in your workflow that need improvement. Implementing automation gradually will make the transition smoother, allowing you and your team to adapt to new processes.
Automating your legal practice makes you a more efficient, competitive and responsive firm in the legal industry.
FAQs About Automated Legal Documents
Let’s answer the most common questions about legal document automation.
Document automation in law means using software to create legal documents automatically. It helps lawyers create custom documents faster. By using templates and inputting specific information, the software produces documents ready to use or review, saving time and reducing errors.
An example of document automation is generating contracts. Using a platform like Clio you can input client’s and deal details and the software will produce a custom contract based on that information. It speeds up the creation process and keeps it standardized.
Document workflow automation manages the entire life cycle of a legal document, including drafting, review, approval and filing. By automating those tasks, you ensure documents move through each stage smoothly, increasing productivity and keeping track of where each document is.
The three stages are:
Drafting: Initial stage where basic information is input to create a draft.
Review and edit: Check for errors and make changes.
Finalization and approval: Complete the document and get all approvals before it’s ready.
Each stage helps to create accurate and complete legal documents with minimal manual intervention.
