AI in legal market was valued at US$835 million in 2023 and is expected to reach US$2,035.1 million by 2030, with a CAGR of 13.4% during the forecast period (2024-2030).
This surge is driven by the increasing need for efficiency, cost reduction, and improved access to legal services. AI technologies are automating various tasks, optimizing workflows, and offering data-driven insights to legal professionals.
To Know more about this report (Description, TOC and List of Tables and Figures) — AI in legal market
Key Players:
Several prominent players are driving the AI in Legal market:
- IBM: Watson for Legal offers eDiscovery, contract analysis, and due diligence solutions.
- LexisNexis: Lex Machina uses AI for legal research, analytics, and risk prediction.
- Thomson Reuters: Westlaw Edge leverages AI for legal research, document review, and contract analysis.
- Kira Systems: Provides AI-powered contract analysis and due diligence solutions.
- Evisort: Offers AI-powered contract management and review platforms.
Drivers and Opportunities:
- Rising Costs and Demand for Efficiency: Law firms and corporate legal departments are seeking ways to increase efficiency and reduce costs. AI automates time-consuming tasks, freeing up professionals for higher-value work.
- Access to Justice: AI-powered legal chatbots and document analysis tools can provide affordable legal guidance and self-service options to individuals and small businesses.
- Data-Driven Insights: AI analyzes vast amounts of legal data to identify trends, predict outcomes, and make strategic decisions.
- Regulatory Requirements: AI facilitates compliance with complex regulations and improves risk management.
Segmentation by Type:
- Software: This segment includes contract analysis and management platforms, legal research tools, eDiscovery solutions, and due diligence software.
- Solutions: This segment encompasses managed services, consulting services, and custom AI development for legal applications.
Segmentation by Application:
- Contract Management: AI automates contract review, analysis, and negotiation, ensuring compliance and mitigating risks.
- Content Moderation: AI identifies and flags potentially harmful or inappropriate content in legal documents.
- Document Writing: AI assists in drafting legal documents by suggesting language, boilerplates, and relevant clauses.
- Other Applications: AI also finds use in legal research, eDiscovery, compliance management, and client services.
Segmentation by Region:
- North America: Holds the largest market share due to early adoption of AI technologies and a high concentration of large law firms.
- Europe: Growing adoption of AI, driven by regulations like GDPR and increased focus on legal tech startups.
- Asia Pacific: Rapidly growing market with significant potential due to a large legal workforce and increasing investments in legal technology.
- South America and Middle East & Africa: Emerging markets with nascent AI adoption, but expected to witness significant growth in the coming years.
Overall, the AI in Legal market is poised for continued growth, fueled by the increasing demand for efficiency, cost-effectiveness, and data-driven insights.
As AI technologies mature and become more accessible, their impact on the legal industry will only deepen, reshaping legal practice and making legal services more accessible to all.
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