Legal tech is everywhere. From AI-powered contract review to automated workflows and self-serve tools, in-house teams are bombarded with transformation promises.
But legal leaders know that buying software is the easy part. The real challenge lies in building a business case that withstands scrutiny – one that goes beyond vendor hype and focuses on actual outcomes.
Legal functions are no longer exempt from demonstrating ROI. Whether reporting to the CFO, COO, or the board, General Counsel and legal operations professionals are increasingly expected to justify spending and show impact. With tech budgets under pressure, there is little room for fuzzy value propositions.
A strong legal tech business case is focused, commercial and aligned with wider business priorities. It sets out what the tool does, what it will change, and what that change is worth.
Why do many business cases fall short?
Legal tech vendors often focus on features, integrations, and user interfaces. However, most internal stakeholders are more interested in value, cost, and risk reduction. That disconnect can quickly undermine even the most promising project.
Common mistakes include:
- Over-reliance on vendor materials: Sales decks rarely reflect internal realities or constraints
- Getting distracted by shiny tech: Tools that look ‘cool’ may not shift the needle when implemented
- Failure to define the problem: Without a clear ‘why’, the ‘how’ becomes irrelevant
- Lack of data: Vague claims won’t survive budget scrutiny
- No cross-functional input: Ignoring IT, finance, or compliance will cause delays later
- Tech-first thinking: Pushing tools rather than solving problems
To make a legal tech business case stick, legal teams need to think more like internal consultants and less like buyers.
What a strong business case includes
A credible business case has three core elements: a clear problem statement, a defined solution, and a robust analysis of expected impact. It should also demonstrate that legal has done its homework and thought beyond implementation.
1. Problem definition
Start with clarity. What issue are you solving, and why does it matter?
This might be excessive time spent on NDAs, a backlog of matters not getting addressed, or an inability to track regulatory obligations. Be specific. Back it up with internal data or real-life examples. Avoid generalities like “We need to digitise legal” or “We want to innovate”.
2. Current state analysis
Set out the status quo. Include key pain points, bottlenecks, and inefficiencies. How are things done today? What does it cost? What are the risks? This helps build urgency and frame the value of change.
Use data if you have it, for instance:
- Volume of requests for legal review
- Average time to close a contract
- Hours spent on manual compliance tasks
- External legal spend driven by inefficiency
- Staff turnover and retention rates
3. Solution overview
Technology should now enter the picture. Describe the proposed solution in simple terms. Focus on functionality, usability, and compatibility with existing systems.
Avoid buzzwords. Instead of saying the platform uses “machine learning”, explain that it helps automatically extract key contract terms to reduce manual review. Consider including screenshots, demo insights or feedback from trial users if available.
4. Impact assessment
This is the heart of the business case. It answers the question: What will improve, by how much, and what is that worth?
Break it down into categories such as:
- Time savings: Estimate hours saved across legal and business teams.
- Cost reduction: Consider avoided external legal spend or reduced error rates.
- Risk mitigation: Link compliance improvements to potential regulatory exposure
- Speed: Highlight how the solution accelerates business processes
- Data and visibility: Show how reporting and analytics support better decisions
- People: Clearly indicate the impact on the team, such as managing workloads and retaining staff
If you can, quantify the benefits in monetary terms. This could be through saved headcount hours, reduced time to revenue, or decreased use of outside counsel.
Note: Lawcadia provides a handy Business Case Savings Calculator to assist with quantifying the value and savings the Lawcadia platform can bring to your in-house team.
5. Implementation plan
Show that the project is deliverable. Set out phases, stakeholders, timelines and resource requirements. Include internal dependencies (e.g. IT support, procurement) and highlight low-lift implementation advantages.
Mention how users will be onboarded and supported. Adoption is often the single most significant factor in realising value, so include a change management plan even if it is in short-form.
6. Cost summary and ROI
Provide a clear cost breakdown, including licence fees, implementation, training, and ongoing support. Compare against the benefits identified and express ROI over a 12–36 month window.
If exact figures are unavailable, use conservative assumptions. A business case that shows modest, credible savings is often more compelling than one that promises massive gains with little grounding.
7. Strategic alignment
Finally, tie the investment back to broader business goals. For example:
- Supporting commercial growth through faster deal cycles
- Improving compliance posture across jurisdictions
- Freeing legal resources to focus on strategic work
- Enabling better reporting to senior stakeholders
This helps position legal tech not as a standalone investment but as an enabler of broader organisational success.
What to leave out
A good business case is not a product pitch. It avoids:
- Excessive screenshots or technical jargon
- Vendor marketing language
- Unproven claims or speculative use cases
- Comparisons with competitors, unless substantiated
It also avoids overstating how quickly transformation will happen. Stakeholders respect realism.
Building internal support
Legal tech investment is rarely a solo decision. Bring in stakeholders early. Legal ops, procurement, IT and finance can all help shape a stronger business case and avoid roadblocks. User champions from the business side can also provide valuable insight into pain points and adoption challenges.
Pilots, proof-of-concept trials and feedback from reference clients are another strong tactic. They allow legal teams to validate assumptions, gather feedback and build internal credibility before committing.
Conclusion
Tech is no longer optional for in-house legal teams. However, not all tools are worth the investment. A well-crafted business case cuts through the noise, focusing on real outcomes, not abstract potential.
The best legal tech business cases are grounded in data, framed around business value, and delivered with clarity. They do not just ask for a budget; they make the case for change.
