Strategic Intelligence: Legaltech

Strategic Intelligence: Legaltech

Summary

Traditionally, law firms have been wary of adopting technologies that could compromise data privacy and legal accuracy. Nonetheless, factors such as remote working, high inflation rates, changing client demands, and developments in technologies like artificial intelligence (AI) have added greater pressure on law firms and legal departments to invest in technologies that could help them reduce costs, improve operational efficiency, and remain competitive.

Key Highlights

• Legaltech refers to the use of technology to deliver legal services and support various functions within the legal industry. As in other industries, there are concerns about technology replacing humans in the legal sector. However, legaltech is more likely to augment the legal profession than replace it entirely. Goldman Sachs estimates that AI could automate 44% of current legal tasks. Lawyers will use the time freed up by technological efficiency to focus on more analytical and complex tasks that require human judgment. The stakes are too high in the legal sector to rely entirely on technology to get the work done. The human element is, therefore, still essential in ensuring accuracy and reliability. At the same time, the shortage of tech-savvy legal professionals has created a skills gap, making it challenging for the legal sector to capitalize fully on technological advancements.
• Generative AI is unlocking a wave of innovative applications in the legal sector, from document automation to AI-driven legal research and predictive analytics, promising greater efficiency and accuracy in routine tasks. GlobalData estimates that the global generative AI market will be worth $75.7 billion by 2028. However, this rapid technological evolution comes with pressing concerns about data privacy and security, as generative AI systems often process sensitive client information. Using generative AI in the legal sector also requires specific legally trained models that cover up-to-date case law and judgments.

Scope

• This report provides an overview of the legaltech theme.
• It identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
• It includes comprehensive industry analysis, including market size and growth forecasts and legaltech case studies.
• It contains details of M&A deals driven by the legaltech theme, and a timeline highlighting milestones in the development of legaltech.
• The detailed value chain shows comprises seven core segments: client management, case management, document management, contract management, matter management, legaltech adopters, and legaltech technologies. Leading and challenging vendors are identified for sub-categories across these segments.

Reasons to Buy

• Legaltech aims to increase efficiency by addressing important but low-value or high-volume tasks, allowing lawyers to focus on more complex and high-skill work.
• It has become a significant investment area for traditional law firms, alternative legal service providers (ALSPs), and in-house legal teams.
• This report is an invaluable guide to this important theme, including details of the leading companies and analysis of the potential impact of disruptive technologies like generative AI.