"Increasing automation and AI adoption in legal industry is likely to fuel the growth of the Legal AI Software Market"
Globally, the legal AI software market is expected to grow with a CAGR of more than 20% during the forecast period from 2021 to 2029, starting from US$ 240.0 Mn in 2020. Artificial intelligence (AI) is transforming the face of every industry including the field of law practice. Advantages of AI such as increasing accuracy, efficiencies, cost savings and speed is the major factor driving the growth of legal AI software market. AI has the ability to transform businesses and the services and products they offer. In addition to this, rising number of litigations in the legal industry across the world, growing demand for automation in legal AI software, need to reduce the time it takes to complete the legal case are also contributing to the growth of legal AI software market during the forecast period. Furthermore, there is increasing demand for data-driven decisions and solutions by legal professionals which increases the use of advanced technologies. Adoption of innovative tools such as chatbots help legal firms to take significant steps towards artificial intelligence and be a significant part of digital transformations. These and many such factors are providing significant growth opportunities for the players operating in legal AI software industry, and ultimately fuel the growth of this market during the forecast period. However, lack of awareness among law firms of the benefits of legal AI software, high cost of installation, and cybersecurity and data privacy concerns of the legal data are likely to restrain the growth of this market during the forecast period.
"Contract management application segment is expected to showcase significant growth opportunities during the forecast period"
Based on application, the legal AI software market is segmented into ediscovery, legal research, contract management, compliance, case prediction, and other applications. The contract management application segment is gaining traction in the global legal AI software market and is expected to grow at a highest CAGR during the forecast period. Contract review process is one of the primary tasks performed the law firms and corporate legal departments. This process is conducted mainly to analyze the risk, and opportunities associated with the contracts. In this case, AI based software and solutions can help them analyze the language of the contract and the meaning of the clauses. Moreover, AI based tools designed for contract analysis can read and analyze incoming contracts and immediately suggest changes based on predefined policies. These advantages has increased the adoption of AI software for contract management and is projected to continue to grow during the forecast period.
"North America is expected to dominate the market in near future"
North America dominates the legal AI software market by holding largest market share of nearly 40% of the total revenue generated worldwide. North America being technologically advanced region, is experiencing a notable growth in the legal ai software market in the years ahead. This growth is mainly attributed to the increasing digitization in legal industry, growing investment in research and development of automation and artificial intelligence techniques. Moreover, as North America is home for large number of technology providers, the legal AI software market is progressing rapidly. Additionally, factors such as large-scale investments, funding, and R&D activities in this market space are also attributed to the high position of legal AI market in this region. However, Europe is expected to witness highest growth in the global legal AI software market. As many European companies are adopting AI technology, the legal industry is experiencing a rapid transformation. This is primarily driving the growth of this market in European region.
Some of the prominent players operating in the Legal AI Software Market include Ross Intelligence, Veritone, Thomson Reuters, iManage, LexisNexis, Luminance, Neota Logic, Legalsifter, Everlaw, Pensieve, Casetext, Cognitiv+, Klarity, Nalanda Technology, Omni Software Systems, Lawgeex, Kira, Opentext, Ey Riverview Law, Rradar, among others.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Legal AI Software market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Billion |
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Key questions answered in this report
