What Has Been the Progress and Growth of the LegalTech Artificial Intelligence Market in Recent Years?
The legaltech artificial intelligence market has seen considerable growth due to a variety of factors.
• The size of the legaltech artificial intelligence market has seen substantial increase in the past few years. The market is projected to expand from $2.15 billion in 2024 to $2.82 billion in 2025, with a whopping compound annual growth rate (CAGR) of 31.0%.
The surge witnessed during the past period can be credited to the mechanization of legal procedures, cost curtailment and efficiency augmentation, a burgeoning demand for data protection, enhancement in legal research facilities, and broadening of predictive analytics.
What Can Be Expected from the LegalTech Artificial Intelligence Market Size?
The legaltech artificial intelligence market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for the legaltech artificial intelligence market as it's anticipated to experience massive growth in the coming years. The projected growth is expected to reach $8.43 billion by 2029 with a compound annual growth rate (CAGR) of 31.5%.
Several factors are driving this growth in the forecast period including advancements in natural language processing (NLP), changes in global regulations, wider acceptance of cloud-based solutions, an ongoing emphasis on cybersecurity and changing client expectations. Key trends shaping the forecast period are the emergence of virtual legal assistants, enhanced use of blockchain in legal operations, focus on explainable AI (XAI), incorporation of cloud-based legal solutions, and automation in contract lifecycle management.
What Are the Critical Driver Fuelling The LegalTech Artificial Intelligence Market's Growth?
The anticipated advancement in contract management due to increased automation is touted to fuel the expansion of the legaltech artificial intelligence market. In essence, contract management entails the comprehensive management and improvement of all stages of a contract, from its drafting and inception to execution, performance scrutiny, and ultimate termination. LegalTech AI mechanisms employ NLP and machine learning techniques to aid in the crafting of ingenious contracts by offering wording recommendations, verifying legal adherence, and providing templates, all of which assist legal experts in developing accurate and methodically organized contractual provisions. For instance, Alchemy Insights Inc., an American software solution provider, reported in June 2022 that roughly 1.45 million Ethereum smart contracts were produced entirely in Q1 2022, demonstrating a significant 24.7% climb compared to the 1.16 million smart contracts formulated in Q4 2021. Thus, the progression in contract management automation is set to accelerate the development of the legaltech artificial intelligence market.
How Is The LegalTech Artificial Intelligence Market segmented?
The legaltech artificial intelligence market covered in this report is segmented –
1) By Component: Software, Services
2) By Application: Legal Analytics, Legal Research, Electronic Discovery (eDiscovery), Contract Management, E-Billing, Prediction Technology, Other Applications
3) By End-User: Law Firms, Corporations, Legal Service Providers
Subsegments:
1) By Software: Document Automation Software, Legal Research Tools, Contract Analysis Software, E-Discovery Software, Case Management Systems
2) By Services: Consulting Services, Implementation And Integration Services, Training And Support Services, Custom Development Services, Managed Services
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How Are Emerging Trends Reshaping The Dynamics Of The LegalTech Artificial Intelligence Market?
Prominent organizations in the legaltech AI arena are concentrating on creating innovative products with cutting-edge technological solutions such as cloud-based advocacy platforms to consolidate their market position. In normal parlance, a cloud-based advocacy platform generally denotes a software platform or service facilitated and provided via a cloud computing structure. Take, for instance, FiscalNote Holdings Inc., a U.S. based firm dealing with software, data, and media services. In April 2023, the company launched a refined AI function and incorporated OpenAI's ChatGPT aiming to radically transform the AI application in the lobbying and advocacy sector. The platform's reputation hinges on its reliability, security, and wide-ranging digital advocacy solutions, offering elements like pre-designed lawmaker contact forms, AI-boosted campaign emails, thorough ROI assessments, event coordination tools, newsletters, opinion polls, and petitions. Organizations resort to VoterVoice workflow software to mobilize members for strategic advocacy campaigns. With the usage of this platform and FiscalNote's policy datasets, enterprises empower members to converse directly with lawmakers through messages, emails, and texts, maintaining a timely response to changing political and regulatory situations.
Who Are the Key Players In The LegalTech Artificial Intelligence Market?
Major companies operating in the legaltech artificial intelligence market report are:
• International Business Machines Corporation (IBM)
• Opentext Corporation
• Conga Solutions
• Veritone Inc.
• FiscalNote Holdings Inc.
• Lawgeex
• Lex Machina Inc
• Reveal
• LawGeex
• Kira Inc
• Neota Logic Inc
• Blue J Legal
• eBREVIA
• Justia
• Casetext Inc
• LawTrades
• Catalyst Repository Systems Inc
• Luminance Technologies Ltd
• Legal Robot Inc
• Woodpecker
What Is The Most Dominant Region In The LegalTech Artificial Intelligence Market?
North America was the largest region in the legaltech artificial intelligence market in 2024. The regions covered in the legaltech artificial intelligence market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
