The Tremendous Growth of the Legal AI Software Market

Last Updated at: January 24, 2020
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The Tremendous Growth of the Legal AI Software Market

The Legaltech AI market is expected to grow at a Compound Annual Growth Rate of over 35.94% during 2019-2023 (Source: Zion Market)

AI-based software has taken over the world, finding uses in most walks of life. As technology advances even further, it is for sure that such devices will discover even more use in food, fin-tech, legal, e-commerce marketplace etc. We are still uncovering fields wherein such technology can be used with the service industry and the medical industry being obvious choices in which this technology has proven to be disruptive. The legal market is an exponentially expanding one, and this time around, we are going to take a look at the Legal AI market and how it has undergone tremendous growth. 

online trademark registrationPotential Markets and Players

The biggest companies which are investing in this legal market are IBM, Ross Intelligence, Thomson Reuters, Veritone, iManage, Luminance, and Legalsifter. Such companies have large amounts of researchers and scientists working on multiple projects aimed at revolutionising the legal AI marketplace with particular emphasis being given to client management and data aggregation. Such services are provided in two different ways, namely, via the cloud and on-premises services wherein the voice assistant or device is sold to the firm which needs it. Cloud-based services have been growing at break-neck speeds as they do not require any hardware installation. Also, data encryption on a large scale makes sure that there are no data breaches which may lead to compromising situations, especially in a highly sensitive field such as law. 

Geographic Analysis

A variety of corporations need such services including Corporate Legal Departments, Law Firms, Individual lawyers and even courts for the management of ongoing and pending cases. The major markets geographically are

  • North America wherein the United States, Canada and Mexico are the primary investors
  • Asia-Pacific with China, Japan, Korea, and India leading the way.
  • South America has Brazil, Argentina and Colombia investing significantly whereas the market is still in its growing phase with respect to Europe, the Middle East and Africa.
Get free legal advice now

Expected Growth

The Global Legal AI Market is expected to eclipse $1.89 billion by the year 2026, growing at a rate of 30.5% between 2017 and 2026. Legal AI refers to any usage of AI-based technology to enhance the performance of any task a legal firm has to undertake while working and interacting with clients. The significant factors that have contributed to the tremendous growth the industry has undergone are the increasing demand for satisfactory customer service, growing demand for automation, management and compliance issues and the need for risk assessment. However, lack of awareness and security concerns are the primary restraining tendencies that are inhibiting the growth of the market.

Why we need such software?

Leveraging Artificial Intelligence, contract can be reviewed in less than 60 minutes. Interestingly, it saves 20%-80% time without compromising on the quality.

Based on studies, legal firms and legal departments prefer to use such AI-based technology because it helps them in cutting costs and reducing the strain on their labour force. The use of such technology also speeds several processes which would otherwise be long and tedious, and this helps in maintaining a reasonable customer satisfaction rate. Being able to streamline critical work processes helps in reducing repetitive tasks which allow attorneys to focus on more important work such as the building of strategies and court case presentation. 

Potential for Contract Management Services

Contract management is also an important application of such technology, and it is gaining traction in the global market as it once again helps firms in building stronger relations with their customers by making the process more customer-friendly. Law firms spend huge chunks of time handling the contract review and analysis process, which requires lawyers to analyse the risks involved and then decide on whether the deal should go through or not. Hence, AI-powered solutions help the entire team decode the contract language and piece information together to analyse contracts and even suggest changes required based on company policies. 

The legal AI software allows firms to relax when it comes to human resource management, and the system allows more time for lawyers to focus on their more creative work. This lessens the burden or workload on them and hence increases their productivity, which therefore makes them happier and more satisfied with their job. With the need for performing legal tasks being on the rise, year after year, the demand for such services is expected to grow exponentially in the coming years.

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The Tremendous Growth of the Legal AI Software Market

621

The Legaltech AI market is expected to grow at a Compound Annual Growth Rate of over 35.94% during 2019-2023 (Source: Zion Market)

AI-based software has taken over the world, finding uses in most walks of life. As technology advances even further, it is for sure that such devices will discover even more use in food, fin-tech, legal, e-commerce marketplace etc. We are still uncovering fields wherein such technology can be used with the service industry and the medical industry being obvious choices in which this technology has proven to be disruptive. The legal market is an exponentially expanding one, and this time around, we are going to take a look at the Legal AI market and how it has undergone tremendous growth. 

online trademark registrationPotential Markets and Players

The biggest companies which are investing in this legal market are IBM, Ross Intelligence, Thomson Reuters, Veritone, iManage, Luminance, and Legalsifter. Such companies have large amounts of researchers and scientists working on multiple projects aimed at revolutionising the legal AI marketplace with particular emphasis being given to client management and data aggregation. Such services are provided in two different ways, namely, via the cloud and on-premises services wherein the voice assistant or device is sold to the firm which needs it. Cloud-based services have been growing at break-neck speeds as they do not require any hardware installation. Also, data encryption on a large scale makes sure that there are no data breaches which may lead to compromising situations, especially in a highly sensitive field such as law. 

Geographic Analysis

A variety of corporations need such services including Corporate Legal Departments, Law Firms, Individual lawyers and even courts for the management of ongoing and pending cases. The major markets geographically are

  • North America wherein the United States, Canada and Mexico are the primary investors
  • Asia-Pacific with China, Japan, Korea, and India leading the way.
  • South America has Brazil, Argentina and Colombia investing significantly whereas the market is still in its growing phase with respect to Europe, the Middle East and Africa.
Get free legal advice now

Expected Growth

The Global Legal AI Market is expected to eclipse $1.89 billion by the year 2026, growing at a rate of 30.5% between 2017 and 2026. Legal AI refers to any usage of AI-based technology to enhance the performance of any task a legal firm has to undertake while working and interacting with clients. The significant factors that have contributed to the tremendous growth the industry has undergone are the increasing demand for satisfactory customer service, growing demand for automation, management and compliance issues and the need for risk assessment. However, lack of awareness and security concerns are the primary restraining tendencies that are inhibiting the growth of the market.

Why we need such software?

Leveraging Artificial Intelligence, contract can be reviewed in less than 60 minutes. Interestingly, it saves 20%-80% time without compromising on the quality.

Based on studies, legal firms and legal departments prefer to use such AI-based technology because it helps them in cutting costs and reducing the strain on their labour force. The use of such technology also speeds several processes which would otherwise be long and tedious, and this helps in maintaining a reasonable customer satisfaction rate. Being able to streamline critical work processes helps in reducing repetitive tasks which allow attorneys to focus on more important work such as the building of strategies and court case presentation. 

Potential for Contract Management Services

Contract management is also an important application of such technology, and it is gaining traction in the global market as it once again helps firms in building stronger relations with their customers by making the process more customer-friendly. Law firms spend huge chunks of time handling the contract review and analysis process, which requires lawyers to analyse the risks involved and then decide on whether the deal should go through or not. Hence, AI-powered solutions help the entire team decode the contract language and piece information together to analyse contracts and even suggest changes required based on company policies. 

The legal AI software allows firms to relax when it comes to human resource management, and the system allows more time for lawyers to focus on their more creative work. This lessens the burden or workload on them and hence increases their productivity, which therefore makes them happier and more satisfied with their job. With the need for performing legal tasks being on the rise, year after year, the demand for such services is expected to grow exponentially in the coming years.

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