What Fueled The Previous Growth In The Legal AI Software Market?
The legal ai software market has seen considerable growth due to a variety of factors.
• The market size of legal AI software has experienced rapid growth in the past few years. The market is projected to expand from $2.3 billion in 2024 to $2.79 billion in 2025, with a compound annual growth rate (CAGR) of 20.9%.
This augmentation during the historical period stemmed from a rise in legal workload, developments in natural language processing (nlp), increased efficiency in cost and time, concerns about data security and compliance, and the requirement for predictive analytics.
How Does the Forecast Look for the Legal AI Software Market?
The legal ai software market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of legal AI software is anticipated to experience swift expansion in the coming years. It's predicted to escalate to a valuation of $5.76 billion in 2029, boasting a compound annual growth rate (CAGR) of 19.9%.
This predicted surge over the forecast period could be linked to the global spread of legal services, incorporation with legal practice management systems, steps towards ethical and bias reduction, legal research automation, modifications in regulations, and obligatory compliance. The foreseeable future will likely witness continued growth in AI technologies, an increase in remote work and collaboration, integration of contract lifecycle management (CLM), embrace of cloud-based legal solutions, and automation of mundane legal tasks.
What Are The Leading Drivers Of Growth In The Legal AI Software Market?
The rising incidence of litigation is projected to fuel the expansion of the legal AI software market. Lawsuits refer to legal actions carried out within a court of law, typically encompassing claims, grievances, or disagreements initiated by one party (the plaintiff or claimant) against a counterpart (the defendant). Legal AI software, beneficial within such lawsuits, harnesses predictive analysis to scrutinize prior case results and legal precedents, imparting crucial insights enabling lawyers to take data-driven decisions and devise solid legal tactics. For example, in September 2023, a notable increment of over 50% was observed in new employment discrimination lawsuits filed by the US Equal Employment Opportunity Commission (EEOC), a federal entity in the US, in comparison to the filings of fiscal year 2022. Moreover, lawsuits filed in the fiscal year 2023 incorporated 25 systemic lawsuits, nearly twice the number filed annually over the previous three fiscal years. Hence, the escalating frequency of lawsuits propels the growth of the legal AI software market.
How Are The Segments Defined Within The Global Legal AI Software Market?
The legal AI software market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment Mode: On-Premise, Cloud
3) By Technology: Machine Learning And Deep Learning, Natural Language Processing
4) By Application: eDiscovery, Legal Research, Contract Management, Compliance, Other Applications
5) By End User: Corporate Legal Departments, Law Firms, Other End Users
Subsegments:
1) By Solution: Document Automation, Legal Research, Contract Analysis, E-Discovery, Case Management, Compliance Management, Predictive Analytics
2) By Services: Consulting Services, Implementation Services, Training And Support Services, Maintenance And Support Services
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What Trends Are Shaping The Legal AI Software Market?
Top firms in the legal AI software market are creating sophisticated tech solutions, such as legal generative AI platforms, to expand their client reach, augment sales, and stimulate market revenues. A legal generative AI platform is a technological innovation in the legal domain which employs generative artificial intelligence to produce legal documents, content, or insights. For example, LexisNexis, an American software firm, unveiled Lexis+ AI in May 2023. This generative AI platform is purposed at overhauling legal tasks, leveraging the largest storage of precise and exclusive legal content. Lexis+ AI, using its wide-ranging collection of documents and records, provides unrivaled speed and accuracy, assuring customers of reliable and exhaustive legal findings. The newly launched Lexis+ AI tool includes a conversational search feature, simplifying the traditionally complex and lengthy legal research task. This function allows users to ask a variety of legal questions with references, streamlining the research process and bolstering lawyers' investigation capacities.
Who Are the Key Players In The Legal AI Software Market?
Major companies operating in the legal AI software market report are:
• International Business Machines Corporation
• Thomson Reuters Corporation
• Opentext Corporation
• Lexisnexis Group Inc.
• iManage LLC
• Kira Inc.
• Veritone Inc.
• Cs Disco Inc.
• Everlaw
• Brightflag
• Lex Machina Inc.
• Brainspace Corporation
• Lawgeex
• Ironclad Inc.
• Neota Logic Inc.
• Luminance Technologies Ltd.
• LegalSifter Inc.
• Autto Limited
• CaseMine
• Cognitiv+ Ltd.
• Intraspexion Inc.
• Kim Technologies
• Legal Robot Inc.
• Nalanda Technology Ltd.
• Omni Software Solutions
• Pensieve Technology Ltd.
• Ross Intelligence
• Text IQ Inc.
What Is The Most Dominant Region In The Legal AI Software Market?
North America was the largest region in the legal AI software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the legal ai software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
