Aderant’s Acquisition of Virtual Pricing Director: Implications for Legal Technology Innovation

Context of Aderant’s Acquisition of Virtual Pricing Director

Aderant, a prominent player in legal technology, has recently acquired the SaaS legal pricing solution, Virtual Pricing Director (VPD), as of 28 October. This acquisition underscores Aderant’s commitment to integrating advanced technology solutions that leverage artificial intelligence (AI) and adaptive workflows. The purpose of VPD is to assist law firms in accurately pricing their services and formulating effective pricing strategies, thereby addressing the increasing demands for fee transparency and alternative fee arrangements within the legal sector.

Founded in 2017 through a partnership between Burcher Jennings and Validatum, VPD has established itself as a leading authority in law firm pricing. The firm, co-founded by Richard Burcher, combines software solutions with consultancy services, emphasizing the dual nature of its offerings. This acquisition not only expands Aderant’s technological capabilities but also enhances its consultancy services, which are crucial for law firms navigating the complexities of modern pricing strategies.

Main Goal of the Acquisition

The primary objective of Aderant’s acquisition of VPD is to build an all-encompassing platform that integrates pricing, finance, and billing functions into a cohesive solution. This integration aims to provide law firms with a comprehensive understanding of their pricing history and profitability, thus enabling them to make informed decisions regarding fee arrangements. As stated by Aderant’s CEO, Chris Cartrett, pricing has emerged as one of the most significant challenges faced by law firms globally. By incorporating VPD into its portfolio, Aderant seeks to alleviate these challenges through enhanced technological solutions.

Advantages of the Acquisition

• Enhanced AI Capabilities: VPD utilizes AI technologies to generate matter plans and pricing guidelines, allowing lawyers to create tailored proposals for clients. This technological enhancement positions Aderant to offer a more robust pricing solution than existing options in the market.
• Vendor Agnosticism: VPD’s commitment to remaining vendor agnostic ensures that it will continue to support various law firms, regardless of their existing systems, thereby fostering wider adoption of its solutions.
• Integration of Consultancy Services: Aderant’s aim to preserve and promote the consultancy aspect of VPD’s offerings ensures that law firms receive guidance in addition to software solutions, enhancing their overall pricing strategy.
• Actionable Insights: By utilizing VPD’s capabilities, law firms can transform the data they collect into actionable insights, enabling partners to make strategic decisions based on historical pricing data.

Future Implications of AI in Legal Pricing

The integration of AI in legal pricing, as demonstrated by the acquisition of VPD, is poised to revolutionize the legal industry. The ability for lawyers to interact with pricing software using natural language could significantly streamline processes. For instance, future developments may allow partners to query the software for optimal resource allocation based on client instructions. This advancement represents a shift towards more intuitive interfaces, making sophisticated pricing tools accessible to a wider range of legal professionals.

Moreover, as Aderant continues to invest in back-office operations and AI technologies, the legal sector may witness a shift where firms that proactively adopt such innovations gain competitive advantages. The ongoing evolution in legal pricing strategies facilitated by AI will likely redefine how law firms approach fee structures, ultimately leading to a more transparent and efficient legal services market.