LEGAL TECH ARTIFICIAL INTELLIGENCE MARKET REPORT OVERVIEW
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The global legal tech artificial intelligence market size was USD 8152 million in 2021 and the market will touch USD 148790.74 million by 2031, at CAGR of 33.7% during the forecast period.
Artificial intelligence (AI)-powered software is widely employed in the current arena to carry out different legal tasks, and in the next years, AI is anticipated to affect and own even more of these tasks. AI may now perform research, expedite digital discovery, evaluate documents, assist with due diligence, and more, in addition to replacing advocacy or negotiation or appearing in court.
Furthermore, AI has been widely implemented in the legal profession to expedite procedures such as due diligence, rapid contract analysis during litigation to ensure quality, completeness, and relevance, research review, document review, action review, decision review, risk and opportunities. As a result, all of these additions to the legal process framework are referred to as the Legaltech AI market. In their current condition, AI-powered legaltech products are primarily focused on enhancing law firms' speed, accuracy, and efficiency in order to improve the client experience.
COVID-19 Impact: Pandemic Driven Remote Solutions, e-Discovery and Data Analysis Shooted Up the Market Growth
The legal technology business has grown significantly in recent years, owing to advances in artificial intelligence and automation technologies. Because the pandemic has forced people to work from home, there has been an increase in demand for legal technology solutions that enable remote communication, document management, and virtual court sessions. AI-powered tools have been essential in facilitating these processes. AI technologies have been used by law firms and legal departments to automate time-consuming processes such as legal research, contract review, and due diligence. This has resulted in enhanced efficiency and cost savings, which have been critical given the economic uncertainties induced by the pandemic.
LATEST TRENDS
"Smart Contract Technology and NLP Advancements to Uplift the Market Share"
Smart contracts are created and managed using blockchain technology and AI. When predetermined conditions are met, these contracts automatically implement the terms of the agreement, removing the need for intermediaries and boosting the efficiency of legal transactions. NLP, a type of AI, has been a prominent focus in legal technology. Advanced NLP algorithms enable robots to interpret and generate human language, improving the efficiency and accuracy of tasks such as contract analysis, legal research, and document summarization.
LEGAL TECH ARTIFICIAL INTELLIGENCE MARKET SEGMENTATION
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- By Type
Based on type the global market can be categorized into document management system, practice and case management, contract management, IP-management, legal research, legal analytics, cyber security, predictive technology, compliance and others.
Document Management Systems accounted for more than a quarter of the market and are expected to rise at a healthy CAGR throughout the forecast period. In recent years, artificial intelligence has collaborated with the legal sector to develop novel AI-based solutions and applications to automate routine legal procedures such as document screening and contract analysis to discover crucial clauses. In the field of document management systems, AI is becoming a force multiplier. The technology has the unique capacity to improve, smarten, and accelerate every phase of the operation. Furthermore, IT and telecommunications, retail, government, and manufacturing are all growing moderately as a result of advances in digital technologies. These industries' top players use document management systems to digitise their business processes.
- By Application
Based on application the global market can be categorized into lawyers, clients and others.
Lawyers held more than half of the market in 2021 and are expected to expand during the forecast period. AI companies are constantly attempting to develop technologies that can manage arduous jobs in several industries with greater speed and precision. In the legal profession, AI has made considerable inroads into assisting lawyers by gradually altering the profession and encroaching on the job of paralegals, legal researchers, and litigators. Law firms and professional services firms who want to make the most accurate business decisions in the age of AI disruption employ legaltech AI services to examine where AI may complement their experts' operations.
DRIVING FACTORS
"Improved Accuracy and Efficiency to Step Up the Market Sales"
Artificial intelligence-powered applications automate time-consuming and repetitive operations including legal research, contract analysis, and document inspection. Legal practitioners can focus on more strategic and value-added activities by automating these operations, resulting to enhanced productivity. AI algorithms, particularly those based on machine learning and natural language processing, can accurately analyse large volumes of legal data. This precision is critical in jobs such as legal research, which requires complete and correct information.
"Ethical AI and Bias Mitigation to Accelerate the Market Growth"
There is a rising emphasis on ensuring that AI algorithms employed in legal technology are objective and ethical. In the legal tech business, addressing biases in AI models and making these technologies more open and fair is a crucial trend. Virtual assistants and chatbots powered by artificial intelligence are getting increasingly sophisticated, delivering basic legal information, organising appointments, and answering typical legal concerns. These technologies boost client interaction and customer service efficiency in law firms.
RESTRAINING FACTORS
"Security Concerns and Constant Evolving Technologies are Subjected to Restrained Market Growth"
AI systems, like any other software, are subject to cyber threats. It is critical to ensure the security of AI algorithms and the data they process, especially in legal scenarios where sensitive and confidential information is involved. The field of AI is constantly growing, with new algorithms and methodologies appearing at a rapid pace. Keeping up with the newest breakthroughs and ensuring that AI solutions remain current and successful can be difficult for legal practitioners and organisations. As a result the security concerns and the constantly evolving technologies are the factors subjected to restrained legal tech artificial intelligence market growth.
LEGAL TECH ARTIFICIAL INTELLIGENCE MARKET REGIONAL INSIGHTS
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"North America to Lead with Surge in Legal Tech Operations and Key Market Players"
The United States, in particular, has been a hub for Legal Tech AI development and use, as well as a major contributor to the Legal Tech artificial intelligence market share. Major areas such as New York and Silicon Valley have seen an increase in the number of Legal Tech businesses concentrating on AI applications. Every year, American corporations spend the same amount on traditional law firms, but they spend significantly more on in-house legal departments and other legal service providers. Assembling data, defining performance and payment metrics, and managing and controlling the outside law firms that clients have traditionally relied on for advice and representation are all made possible by the growing use of AI by both in-house counsel and these new legal service providers. North America's supremacy in this field is due to the presence of a big legal industry, a tech-savvy workforce, and significant investment in technology.
KEY INDUSTRY PLAYERS
"Key Industry Players Shaping the Market through Innovation and Market Expansion"
Significant market participants have a significant effect on the market and are essential in identifying consumer preferences and market dynamics. These large companies' extensive retail networks and online platforms give customers simple access to a wide variety of apparel options. Due to their strong global presence and well-known brand, which have also strengthened consumer confidence and loyalty, product adoption has increased. These titans of industry also provide consistent funding for research and development, enabling legal tech artificial intelligence to incorporate innovative designs, materials, and smart features in response to shifting user needs and preferences. The combined efforts of these large companies have a significant influence on the future course and degree of competition in the market.
List of Market Players Profiled
- Loom Analytics (U.S.)
- FiscalNote (U.S.)
- LexMachina (U.S.)
- eBREVIA (U.S.)
- Catalyst Repository Systems (U.S.)
- Knomos Knowledge Management Inc. (Canada)
- Everlaw (U.S.)
- Casetext Inc. (U.S.)
- LEVERTON (U.K)
- Luminance T (U.K)
- Lawgeex (Israel)
INDUSTRIAL DEVELOPMENT
- June 2021: Loom has released a beta version of its software developer kit, which allows businesses to add a Loom-powered video record button to their own applications. In the same year, the company reached 14 million users and 200,000 businesses in 230 countries throughout the world.
REPORT COVERAGE
The report includes a thorough SWOT analysis and offers predictions for market growth in the future. It explores a broad range of market categories and possible applications that might have an impact on the market's trajectory in the upcoming years, as well as key aspects that contribute to the market's growth. The research provides a comprehensive overview of the market's components and identifies possible growth opportunities by taking into account both historical turning points and present trends.
| REPORT COVERAGE | DETAILS |
|---|---|
Market Size Value In |
US$ 8152 Million in 2021 |
Market Size Value By |
US$ 148790 Million by 2031 |
Growth Rate |
CAGR of 33.7% from 2021 to 2031 |
Forecast Period |
2024-2031 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the legal tech artificial intelligence market expected to touch by 2031?
The global legal tech artificial intelligence market is expected to reach USD 148790.74 million by 2031.
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What CAGR is the legal tech artificial intelligence market expected to exhibit by 2031?
The legal tech artificial intelligence market is expected to exhibit a CAGR of 33.7% by 2031.
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Which are the driving factors of the legal tech artificial intelligence market?
Improved accuracy, efficiency, ethical AI and bias mitigation are some of the driving factors of the legal tech artificial intelligence market.
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What are the key legal tech artificial intelligence market segments?
The legal tech artificial intelligence market segmentation that you should be aware of, which include, Based on type the market is classified as document management system, practice and case management, contract management, IP-management, legal research, legal analytics, cyber security, predictive technology, compliance and others. Based on application the market is classified as lawyers, clients and others.
