Data Privacy Needs & Trends in Litigation Support

One of the most important trends in our 2024 survey was the rising importance of data privacy in litigation support. Increased adoption of virtual legal technology and innovative technologies like Artificial Intelligence (AI) have created new challenges for data protection. But forward-thinking firms are meeting them head-on.

Below, we’ll walk through insights on how data privacy impacts vendor selection, where firms’ cybersecurity stands, how they’re mitigating attacks and controlling costs, and the role AI plays.

Data Privacy and Vendor Selection

In 2024, law firms seeking litigation support services are building data privacy considerations into their vetting and selection process when comparing technological platforms and solution providers.

Here are the top priorities law firms considered when vetting vendors in 2024:

• 70.86% of respondents prioritize vendors’ data privacy policies
• 51.14% require healthcare privacy compliance with an independent audit
• 45.54% consider end-to-end encryption of transmitted files essential
• 25.81% prioritize vendors’ cyber liability insurance coverage

These data points are consistent with our findings from last year, with the biggest difference in compliance with the Health Insurance Portability and Accountability Act (HIPAA). The 51.14% of firms that require HIPAA compliance audits is up about 5% from the 48.67% who did in 2023. This might be because of adjustments to HIPAA enforcement; both minimum penalties and yearly cumulative maximum fines have increased across all kinds of violations for 2024.¹

The clear takeaway here is that firms are (rightfully) seeking out litigation support technology partners that will help them meet their cybersecurity and data privacy goals.

Firms’ Cybersecurity Protections

Law firms are aware of the risks that a data breach could pose to them and their clients, and they remain confident in their ability to defend against these risks. Per our survey, 76.67% of firms agree that their firms are adequately protected against cybersecurity risks, including 46.46% strongly and 30.03% somewhat agreeing. These figures are up from 2023’s 71.65% overall agreement, with the biggest increase in strongly agree (+12.71% YoY). In addition, 5.78% of respondents disagreed in 2023, whereas just 4.50% felt unprotected in 2024 (-22.15% YoY).

Relatedly, the vast majority of firms (73.74%) confirmed that their practices complied with information security and privacy standards, including regulatory frameworks.

These data points suggest that confidence in cybersecurity and data protection is up, which is increasingly critical as firms increase their use of digital tools like remote depositions and AI technologies. Without a careful approach, technologies of all types can leave firms vulnerable to unsecured data transmissions. It’s absolutely critical to work with litigation support providers that ensure robust data protection.

Mitigating Cybersecurity Threats

Despite firms’ confidence in their data privacy protections, they continue to be targeted by cyberattacks. In 2024, 200 firms reported being the target of a directed cyberattack. While the overall number dropped from 2023 (272), the share of respondents who reported being attacked stayed relatively constant (19.85% in 2023 vs. 20.92% in 2024). This points to the fact that, no matter how well-protected a firm feels, it could be targeted by cybercriminals.

Beyond our respondents, 2024 has seen an overall increase in cyberattacks on firms, especially in big law. One AM 100 firm reported a hack that could have compromised the social security numbers of over 6,000 people, and three AM 200 firms also filed breaches before Q3 2024.² While 2023 saw 28 law firm breaches in total, 2024 already had 21 and counting by late May.

Cost Control and Data Privacy Integration

One relatively universal principle in data privacy and cybersecurity is minimizing variables. According to our survey, this consideration relates to how firms control costs and maximize their data protection, as many are opting to consolidate their legal technology vendors.

These are the top ways firms are controlling costs across litigation support providers:

• 58.44% use a limited number of vendors
• 30.68% select vendors with the lowest costs
• 27.92% review budgets frequently

Consolidation is being pursued at almost double the rate of low-cost seeking—and nearly as much as that and the next-highest method combined. This is at least in part because of its inherent efficiency and security assurance. Using more vendors means increasing risk exposure.

In addition, the best vendors’ commitment to privacy standards provides additional assurance.

Looking Ahead: AI and Data Privacy in Litigation

Finally, our survey unveiled the increasing role AI-related risks are playing in law firms’ data privacy and cybersecurity posture. AI in law is picking up steam, with 25.92% of firms currently using it, 31.72% expecting to increase use in 2025, and 48.84% believing AI will become mainstream in 3-5 years.

However, this widespread AI adoption comes with security and ethical concerns, as emerging technology is subject to evolving threats. The American Bar Association (ABA) released a formal opinion in July 2024 outlining lawyers’ obligations to avoid reliance on AI, uphold client confidentiality and consent, and generally ensure accuracy and fairness across their uses of AI tools.³

To that effect, our survey found that more firms are training and educating professionals on AI’s challenges in 2024 (49.13%) than were in 2023 (36.33%). This number will continue to increase over time, and firms should also incorporate other approaches, like seeking out vendors that prioritize AI security and ethics best practices while also supporting staff awareness.

Commit to Data Privacy with Confidence

Looking ahead to 2025, law firms are placing greater emphasis on data privacy and security both internally and across the litigation support partners and other vendors they work with. They prioritize data privacy when vetting vendors and look to consolidate the number of vendors used in favor of less, more secure options—especially as threats from AI-related technology trends are growing.

U.S. Legal support helps law firms and legal professionals keep their cases on track without compromising their data privacy.

To learn more about how we can help, get in touch today!

Sources: 

1. Mercer. HHS adjusts 2024 HIPAA, certain ACA and MSP monetary penalties.  https://www.mercer.com/insights/law-and-policy/hhs-adjusts-2024-hipaa-certain-aca-and-msp-monetary-penalties/
2. Above the Law. Biglaw Firms Fall Prey To Cyberattacks, With Data Breaches On The Rise. https://abovethelaw.com/2024/05/biglaw-firms-fall-prey-to-cyberattacks-with-data-breaches-on-the-rise/
3. Hosch & Morris. AI Legal Ethics: New Guidance from the ABA. https://www.hoschmorris.com/privacy-plus-news/ai-legal-ethics-aba-formal-op-512

Julie Feller

Julie Feller is the Vice President of Marketing at U.S. Legal Support where she leads innovative marketing initiatives. With a proven track record in the legal industry, Juie previously served at Abacus Data Systems (now Caret Legal) where she played a pivotal role in providing cutting-edge technology platforms and services to legal professionals nationwide.