AI in Legal Services Market Size is valued at USD 9.2 billion in 2023 and is predicted to reach USD 61.6 billion by the year 2031 at a 27.7% CAGR during the forecast period for 2024-2031.
AI in legal services is transforming the way legal professionals work by automating routine tasks, enhancing decision-making, and improving access to legal information. AI-driven tools streamline document analysis, legal research, contract review, and even offer predictive insights for case outcomes. Enhancing the accuracy and accessibility of legal services while cutting expenses and increasing efficiency is the aim. Review and analysis of documents, legal research, contract administration, and other areas are the main areas of AI in legal services. Lawyers can locate pertinent case law, statutes, and legal precedents more quickly and effectively with the use of AI-powered legal research tools, which can deliver more thorough and rapidly updated search results.
The AI in legal services is being driven by several factors including technological advancements, rising investment in AI, growing strategic collaboration among the market players, increasing volume of data and documents, demand for greater efficiency and cost reduction and many others. However, the market growth of this market is restricted by some variables like ethical and regulatory concerns, high cost of implementation, complexity of legal work and others.
Furthermore, advancements in NLP and growing investment in legal tech are some of the major potential opportunities for market growth during the estimated duration.
Competitive Landscape
Some Major Key Players In The AI in Legal Services Market:
- IBM Corporation
- ROSS Intelligence
- Luminance Technologies Ltd.
- Casetext Inc.
- Kira Systems Inc.
- Legal Robot Inc.
- Neota Logic Inc.
- RAVN Systems (now part of iManage)
- Seal Software (now part of DocuSign)
- Everlaw Inc.
- eBrevia Inc.
- NexLP Inc.
- Judicata Inc.
- Cognitiv+ (now part of NetDocuments)
- LawGeex Ltd.
- Legatics Ltd.
- Disco (formerly CS Disco Inc.)
- ThoughtRiver Ltd.
- Evisort Inc.
- Eigen Technologies Ltd.
- Premonition AI Ltd.
- Ayfie Group AS
- Omnius AG
- Knovos Inc.
- Lecorpio (now part of CPA Global)
- Other Market Players
Market Segmentation:
The AI in Legal Services market is segmented based on type, application and end user. Based on type, the market is segmented as natural language processing (NLP), machine learning, predictive analytics, data analytics and visualization, robotic process automation (RPA), virtual assistants and expert systems. By application, the market is segmented into contract review and analysis, legal research, e-discovery and litigation support, due diligence, predictive legal analytics, compliance management, document automation, case prediction and outcome analysis, intellectual property management and legal chatbots. Based on end users, the industry is bifurcated into law firms, corporate legal departments, government and regulatory bodies, legal tech companies and others.
Based On Type, The Data Analytics And Visualization Segment Is Accounted As A Major Contributor To The AI In Legal Services Market.
The data analytics and visualization category is expected to hold a major share of the global AI in legal services market. Artificial intelligence (AI)-powered data analytics solutions give legal practitioners access to client information, legal trends, and case law to assist them make better decisions. Strategic planning and case management are enhanced by this capacity to analyze vast amounts of data and produce useful insights, which results in more effective and efficient legal services. AI tools also save time and effort by automating data analysis and visualization, which takes less time and effort than manual data processing. Law companies may handle more cases and clients due to this efficiency, which raises their potential revenue.
The Due Diligence Segment Witnessed Growth At A Rapid Rate.
The due diligence segment is projected to grow rapidly in the global AI in legal services market. Due diligence technologies powered by AI are having a big impact on the legal services industry because they're more accurate, efficient, and economical. Because of these developments, businesses can handle more transactions, cut expenses, and better manage risks, all of which contribute to revenue growth. Due diligence is a fast growing industry for artificial intelligence (AI), driven by rising investment, broad acceptance, and a need for cutting-edge solutions. AI technologies' involvement in due diligence will probably become even more crucial as they develop, as they are the main source of revenue and expansion for the legal services sector.
In The Region, North America AI In Legal Services Market Holds A Significant Revenue Share.
The North America AI in Legal Services market is expected to report the maximum market share in the near future. Due to the abundance of law firms, legal technology businesses, and a strong emphasis on innovation, North America is one of the greatest marketplaces for artificial intelligence in the legal services industry. The increased usage of AI technology by legal professionals and organizations is projected to drive further growth in the market. In North America, big law firms and corporate legal departments are among the first to use AI technology, using them to boost service delivery, cut expenses, and increase efficiency. Smaller businesses are starting to use AI as the technology becomes more widely available. In addition, Asia Pacific is likely to grow rapidly in the global AI in legal services market due to rising investment in advanced technology.
Recent Developments:
- In June 2024, Thomson Reuters (TRI.TO) announced that it will purchase Casetext, a legal company that provides an artificial intelligence-powered assistant for law professionals, in a $650 million all-cash transaction. The CFO of Thomson Reuters announced that the firm intends to allocate approximately $100 million per year towards investments in artificial intelligence (AI). This budget will be in addition to the company's merger and acquisition budget of approximately $10 billion, which will be utilized between now and 2025.
AI in Legal Services Market Report Scope
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 9.2 Bn |
|
Revenue Forecast In 2031 |
USD 61.6 Bn |
|
Growth Rate CAGR |
CAGR of 27.7% from 2024 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
|
Historic Year |
2019 to 2023 |
|
Forecast Year |
2024-2031 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By Type, Application, End-User |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
|
Competitive Landscape |
IBM Corporation, Open Text Corporation, Thomson Reuters Corporation, Veritone Inc., ROSS Intelligence Inc., Luminance Technology Ltd., LexisNexis Group Inc., Neota Logic Inc., Kira Inc. Casetext Inc and Others. |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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