The litigation funding space is evolving quickly, and emerging technologies are beginning to play a role in how litigation is evaluated, managed and funded. Here’s a handy guide to what emerging technologies mean for the future of the sector.
Artificial Intelligence
It seems that every sector is starting to rely on AI. After all, AI can simplify long-winded and time-consuming tasks and help in predicting success or assessing risks. The usefulness of AI is now extending to the litigation funding sector, helping with case management and analysis.
AI tools can, for example, analyse legal documents extremely quickly and accurately, summarise and evaluate a case’s potential risk or credit and even make predictions on rulings based on patterns. AI is speedy and highly accurate, and can help the sector save time, manpower and money in resource-heavy tasks.
Data Analysis
Data analysis plays an enormous part in assessing outcomes within the litigation finance sector. Historical patterns, outcomes and trends can be explored and analysed by the use of emerging technologies, such as data platforms. These can support investors as they consider success rates with a more data-driven approach that removes some of the guesswork from the prediction process.
Blockchain and Smart Contracts
Blockchain tech is a method of secure record-keeping that ensures transparency in any funding agreement. It can also help firms monitor arrangement terms and keep tabs on cash flow.
Part of this technology includes smart contracts, which help both funders and litigants to manage payments and ensure that contract terms are adhered to. This also helps to reduce an investor’s overall sense of risk and helps manage a litigant’s expectations. For those searching for litigation funding, specialists such as https://www.novo-modo.co.uk/litigation-funding can offer tailored support.
Aligning with ESG
Emerging technologies are also supporting the litigation finance sector to meet its ESG – Environmental, Social and Governance – obligations and criteria. As investors seek to support cases that involve social justice, for example, AI and data analysis can enable funders to identify cases that align with the ESG angle.
