Legal AI Software Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.19 Billion |
| Market Size (2029) | USD 3.64 Billion |
| CAGR (2024 - 2029) | 10.70 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Legal AI Software Market Analysis
The AI Software Market In Legal Industry is expected to grow from USD 2.19 billion in 2024 to USD 3.64 billion by 2029, at a CAGR of 10.70% during the forecast period (2024-2029).
Artificial intelligence (AI) has always been at the forefront of utilizing new technical breakthroughs for productivity and efficiency improvements in the legal industry. Also, due to the advancements and the increase in processing power in NLP, neural networks, and chips, the legal sector is observing improved value in its application.
- The legal industry has started implementing AI technologies more frequently to handle legal operations effectively. For instance, an internal legal department often spends 50% of its time examining contracts, even those as simple as non-disclosure agreements, slows down operations and causes unnecessary bottlenecks. By enabling lawyers to concentrate their review on the pertinent sections of each contract, AI can save countless hours.
- The market is expanding due to the growing demand for automation in fields including eDiscovery, contract review and management, case prediction, and compliance. In order to help businesses generate tangible value, automation in contract management improves a team's capacity to close agreements, strengthens connections with clients, and positively impacts many other areas of the organization.
- It costs more money to not comply with growing standards like HIPAA, PCI DSS, GDPR, and other financial regulations. According to Globalscape, it costs firms in the financial sector roughly USD 5.47 million to comply with IT rules for data protection, and when a company takes into account fines, lost productivity, and profits, the cost of non-compliance is close to USD 15 million.
- The intersection of AI and law is anticipated to increase significantly throughout the forecast time period. Artificial intelligence (AI) can also be used for a variety of tasks, including due diligence (to review a contract, conduct legal research, or perform electronic discovery functions to do due diligence), prediction technology (to predict the likely outcome of cases being decided before a court of law), legal analytics (to provide data points from previous case laws and judgments and precedent law that lawyers can use in their present cases), automation of documentation, Intellectual property, a variety of other tasks, and several others.
- Due to the complexity involved in legal research, it can be time-consuming and tedious. The necessity for AI is further highlighted by the shorter deadlines that most law firms get to achieve efficient and precise legal research work. AI software can dramatically increase productivity and accuracy, helping judges make quick decisions. For instance, the ROSS Intelligence company uses automated technologies to examine contracts quickly. The program emphasizes pertinent documents. Legal research can be substantially enhanced and streamlined with the appropriate software.
- In addition to several domestic legislative frameworks, high-risk AI systems will be clearly and thoroughly regulated in the European Union with the new Artificial Intelligence Act, which is anticipated to be finalized in 2022. Although many AI-related legislation suggestions have been put out, the United States has not embraced the European Commission's suggested all-encompassing approach to AI regulation.
- On the other hand, a wide range of corporate legal departments and law firms bought AI/machine learning solutions for their law libraries due to the outbreak of COVID-19. In law libraries, technology has a significant role. eDiscovery software and other artificially intelligent platforms have benefited in the fight against COVID-19. Such software, which has the potential to speed up medical researchers' investigations into how to cure COVID-19, is created to assist litigation attorneys in getting to the heart of a case more rapidly.
Legal AI Software Market Trends
Cloud is Expected to Hold Significant Share
- Cloud-based practise management software has been proven to have numerous advantages over on-premise systems, including consistent availability, efficiency, and simple scalability, all of which assist attorneys boost the productivity and profitability of their law business.
- Furthermore, AI solutions must protect sensitive data by synchronising with the secure user logins and permissions established by the law firm's Microsoft Active Directory or maybe configured for something like their Box cloud storage. To preserve secrecy, these AI systems are typically installed on-premise behind a law firm's firewall or in a private cloud.
- When it comes to quick adaption and flexibility, cloud solutions outperform on-premise alternatives. Cloud solutions have emerged as the ideal option for small law firms in need of a practise management system that will scale with them. Law firms can integrate the modules or features that are most relevant to them into their existing solution.
- Furthermore, cloud solutions enable safe communication and file sharing among colleagues, clients, and third parties by utilising a centralised information system. It mitigates the inherent hazards of depending entirely on email.
- Casepoint's technology provides full-spectrum legal discovery with quick, enterprise-class solutions. through evaluate its single platform, their clients can manage and monitor the whole discovery process from legal hold through production, avoiding the need to log in and out of different programmes or manually move information.
North America is Expected to Hold a Major Share
- Rising usage of AI. Furthermore, there is a considerable presence in the region among firms that provide platforms and tools for artificial intelligence to the legal industry. Examples include OpenText Corporation, IBM Corporation, Ross Intelligence Inc., Veritone Inc., and Neota Logic Inc.
- In recent years, North America has seen some of the most important legal, technical startup investments. Onit, a US-based firm that provides corporate workflow solutions for legal and contract administration, has received a USD 200 million strategic investment. Clio, a cloud legal management startup located in Canada, has received a USD 250 million Series D fundraising round. This was one of the most significant investments in a legal and Canadian technology firms.
- The worldwide legal department has seen significant changes recently, and North American law firms are following suit. Due diligence, contract analysis, real estate analysis, intellectual property, and conflict resolution all benefit from artificial intelligence capabilities. Technology tools improve the company's efficiency and competitiveness.
- The availability of company incubators and innovation laboratories aids the region's development of AI-based legal software. To promote the emergence of legal technology, established law firms, ALSPs (such as Thomson Reuters), the Big Four, and financial corporations (such as Barclays) cooperated or founded their incubators. These incubators give access to the guidance, knowledge, and, in some cases, financing that innovative enterprises require to flourish in the market, as well as space to assist legal tech startups and scale-up growth.
Legal AI Software Industry Overview
The legal industry's AI software market has a low market penetration rate, creating tremendous potential for incumbent companies and outsiders looking to enter the sector. However, current market participants have a tremendous edge over any new entrants. Due to the outstanding prospects, rising investments, and supporting activities, competition among present market participants is expected to heat up.
- May 2023 - LexisNexis Group Inc has announced the launch of Nexis Hub, a new tool that supports and streamlines any research workflow to accelerate time to insight. The innovative new solution, created to meet the needs of busy professionals, integrates with Google Chrome and Microsoft Word to help users streamline the complicated and time-consuming process of collecting research and creating reports.
- May 2023 - Luminance Technologies Ltd has launched the latest cutting-edge application of its specialist legal large language model (LLM), the AI-powered 'Ask Lumi' chatbot. 'Ask Lumi' represents the first chatbot underpinned by this legal-grade AI. It allows users to open any contract in Microsoft Word, ask the AI questions about their agreement, and receive instant responses. In contrast, Luminance's Legal Pre-Trained Transformer (LPT) technology learns solely from legally verified documents. It is able to produce content and analyze and understand the content, even that created or edited by third parties. This powerful combination of both generative and analytical AI ensures the utmost legal rigor.
Legal AI Software Market Leaders
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ROSS Intelligence Inc.
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Luminance Technologies Ltd.
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LexisNexis Group Inc.
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IBM Corporation
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KIRA Inc.
*Disclaimer: Major Players sorted in no particular order
Legal AI Software Market News
- May 2023 - LexisNexis Group Inc has launched its highly-demanded API for state court Legal Analytics. where the customers can access Lex Machina's state court analytics and data directly through its API, enabling greater incorporation of Lex Machina's superior Legal Analytics directly into one seamless, existing workflow and with Lex Machina's new API for state courts, users can combine their internal data with Lex Machina's superior Legal Analytics for state courts as well as federal courts.
- April 2023 - Luminance Technologies Ltd has announced that it has partnered with alternative service legal provider, Nexa, to embed Luminance's next-generation AI into the NexaConnex legal service offering, where by embedding Luminance's next-generation AI into their offering, NexaConnex's clients will be able to drive much-needed efficiencies into their day-to-day work and dedicate more time to high-value client activities.
Legal AI Software Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumption And Market Defination
- 1.2 Scope of the study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power Of Suppliers
- 4.2.2 Bargaining Power Of Consumers
- 4.2.3 Threat Of New Entrants
- 4.2.4 Threat Of Substitute Products
- 4.2.5 Intensity Of Competitive Rivalry
- 4.3 Assessment of COVID-19 Impact on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Growing Demand For Automation And Increasing Number Of Litigations In The Legal Industry
- 5.1.2 Growth In The Utilization Of AI By Legal Companies To Complete Legal Cases
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5.2 Market Restraints
- 5.2.1 Data Privacy Concerns Of The Confidential And Legal Data
6. MARKET SEGMENTATION
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6.1 By Component
- 6.1.1 Solution
- 6.1.2 Services
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6.2 By Deployment
- 6.2.1 On-premise
- 6.2.2 Cloud
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6.3 By Application
- 6.3.1 Legal Research
- 6.3.2 Contract Review and Management
- 6.3.3 E-billing
- 6.3.4 E-discovery
- 6.3.5 Compliance
- 6.3.6 Case Prediction
- 6.3.7 Other Applications
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6.4 By End-User
- 6.4.1 Law Firms
- 6.4.2 Corporate Legal Departments
- 6.4.3 Other End-users
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6.5 By Geography
- 6.5.1 North America
- 6.5.2 Europe
- 6.5.3 Asia Pacific
- 6.5.4 Latin America
- 6.5.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Luminance Technologies Ltd
- 7.1.2 Ross Intelligence Inc.
- 7.1.3 Kira Inc.
- 7.1.4 IBM Corporation
- 7.1.5 Lexisnexis Group Inc. (RELX Group Plc)
- 7.1.6 Cs Disco Inc.
- 7.1.7 Thomson Reuters Corporation
- 7.1.8 Veritone Inc.
- 7.1.9 Casetext Inc.
- 7.1.10 Neota Logic Inc.
- 7.1.11 Brainspace Corporation
- 7.1.12 Smokeball Inc.
- 7.1.13 Text IQ Inc.
- 7.1.14 Opentext Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
** Subject To AvailablityLegal AI Software Industry Segmentation
Artificial intelligence (AI) is an incorporated result of machine learning, information science, computer vision, evolutionary computation, data mining, and multi-agent systems. AI is transforming the everyday practice of law, changing the skills and professionalism required from lawyers. Some of the applications of AI in the legal industry include contract review and management, legal research, e-billing, and e-discovery, among others.
AI Software Market in Legal Industry is Segmented by component (solution, services), deployment (on-premise, cloud), application (legal research, contract review and management, e-billing, e-discovery, compliance, case prediction), end-user industry (law firms, corporate legal departments), and geography (North America, Europe, Asia Pacific, Latin America, Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | Solution |
| Services | |
| By Deployment | On-premise |
| Cloud | |
| By Application | Legal Research |
| Contract Review and Management | |
| E-billing | |
| E-discovery | |
| Compliance | |
| Case Prediction | |
| Other Applications | |
| By End-User | Law Firms |
| Corporate Legal Departments | |
| Other End-users | |
| By Geography | North America |
| Europe | |
| Asia Pacific | |
| Latin America | |
| Middle East and Africa |
Legal AI Software Market Research FAQs
How big is the AI Software Market In Legal Industry?
The AI Software Market In Legal Industry size is expected to reach USD 2.19 billion in 2024 and grow at a CAGR of 10.70% to reach USD 3.64 billion by 2029.
What is the current AI Software Market In Legal Industry size?
In 2024, the AI Software Market In Legal Industry size is expected to reach USD 2.19 billion.
Who are the key players in AI Software Market In Legal Industry?
ROSS Intelligence Inc., Luminance Technologies Ltd., LexisNexis Group Inc., IBM Corporation and KIRA Inc. are the major companies operating in the AI Software Market In Legal Industry.
Which is the fastest growing region in AI Software Market In Legal Industry?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in AI Software Market In Legal Industry?
In 2024, the North America accounts for the largest market share in AI Software Market In Legal Industry.
What years does this AI Software Market In Legal Industry cover, and what was the market size in 2023?
In 2023, the AI Software Market In Legal Industry size was estimated at USD 1.96 billion. The report covers the AI Software Market In Legal Industry historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the AI Software Market In Legal Industry size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What future developments are expected in the AI Legal Software Market?
Future developments that are expected in the Artificial Intelligence Legal Software Market are a) Sophisticated AI algorithms b) Increased integration with other technologies like IoT c) Greater emphasis on ethical AI and transparency
Legal AI Software Industry Report
The legal AI software market is experiencing significant market growth, driven by the adoption of AI and cloud technologies within the legal sector. This market overview highlights how legal AI companies are developing innovative solutions that enhance workflow efficiency and reduce operational costs. The market size is particularly expanding in segments like cloud-based solutions and corporate legal departments, emphasizing digital transformation in legal processes.
The industry analysis reveals that AI integration is revolutionizing law firms' productivity, case management, and legal research, making these processes more efficient and cost-effective. As the market forecast indicates, the need for improved data security, compliance, and advanced collaboration tools is fueling the market growth in regions such as North America, Asia Pacific, and Europe.
Industry reports from Mordor Intelligence™ provide comprehensive market data, including market segmentation, market value, and market leaders. These reports offer detailed industry information, market predictions, and industry trends, positioning AI in the legal industry for further growth and innovation.
For those interested in a deeper industry overview, Mordor Intelligence™ offers a report pdf sample. This sample includes an industry outlook, industry statistics, and industry research, providing a thorough market review and market outlook.
In summary, the legal AI software market is set for substantial growth, with industry sales and market leaders driving the market forward. The industry size continues to expand, supported by robust industry research and market analysis, ensuring that the legal sector remains at the forefront of technological advancement.
