Legal AI Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Technology, By Application (E-discovery, Legal Research, Analytics, Legal Chatbots), By End-user, By Region, And Segment Forecasts, 2023 - 2030

Legal AI Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Technology, By Application (E-discovery, Legal Research, Analytics, Legal Chatbots), By End-user, By Region, And Segment Forecasts, 2023 - 2030

Legal AI Market Growth & Trends

The global legal AI market revenue is anticipated to reach USD 3.89 billion by 2030, according to a new study by Grand View Research, Inc. It is anticipated to expand at a CAGR of 18.2% from 2023 to 2030. The ever-expanding volume of legal documents, contracts, and regulations has led to increased challenges for legal professionals in managing and extracting meaningful insights from vast amounts of information.

Legal Artificial Intelligence (AI) offers solutions such as automated document analysis and eDiscovery tools to automate and expedite information processing. AI enables the automation of repetitive tasks, such as contract review and due diligence, reducing the time and resources required for these activities. Such advantages offered by AI are increasing demand for AI in the legal industry. Using legal AI tools, legal professionals can focus on higher-value work, improving efficiency and cost savings by automating routine tasks.

AI tools are further helping identify risks, predict case outcomes, and offer strategic guidance, enabling legal professionals to make more informed decisions. In addition, regulatory frameworks are constantly evolving, and organizations must ensure compliance with various laws and regulations, creating demand for AI-based solutions for assistance in monitoring regulatory changes, assessing compliance risks, and ensuring adherence to legal requirements. The continuous advancements in natural language processing, machine learning, and data analytics have further propelled legal systems' capabilities, fueling the market's growth. Such technologies enable accurate data extraction, semantic understanding, and context-aware decision-making, making legal solutions more powerful and effective.

The legal industry has witnessed improvement in document analysis and review processes with the help of AI. AI-powered systems can identify key clauses, analyze document structure, and flag potential risks or discrepancies. For instance, E-discovery, the process of identifying and collecting electronic data for legal proceedings, has been revolutionized by AI technology to efficiently analyze and process large volumes of electronically stored information (ESI), enabling legal firms to ensure faster and more accurate data identification preservation and review. Predictive coding and machine learning algorithms assist in prioritizing and categorizing documents based on their relevance to legal cases.

There is a rapidly growing trend of using virtual assistants and chatbots powered by AI technology in legal settings to provide quick access to legal information, answer common legal questions, and assist with basic legal inquiries. These AI-powered assistants can interact with users, understand their queries, and provide relevant responses, improving client service and efficiency. The technology is also being employed to address cybersecurity and compliance challenges. AI-powered systems can detect and prevent potential data breaches, monitor regulatory changes, assess compliance risks, and ensure adherence to legal and privacy requirements. The companies are introducing innovative legal AI products, further creating lucrative growth opportunities for the market. For instance, in March 2023, Casetext, the legal AI company, launched CoCounsel, the AI legal assistant. CoCounsel leverages the most advanced large language model from OpenAI, which Casetext has customized for legal practice.

Legal AI Market Report Highlights

• The services segment is anticipated to witness growth at a CAGR exceeding 19.0% from 2023 to 2030. Managed services providers offer ongoing maintenance and support to law firms’ software solutions, helping to ensure that the software is always up-to-date and running smoothly. This can be particularly important for law firms lacking internet IT resources to maintain and update their software independently
• Based on application, the e-discovery segment is anticipated to register growth at a CAGR of 17.0% from 2023 to 2030. E-discovery is one of the lucrative segments of the legal technology market. E-discovery involves identifying, collecting, processing, reviewing, and producing electronic documents and data during litigation discovery
• The North America region accounted for the largest revenue share in 2022. The region has a mature legal industry focusing on technology and innovation. Numerous legal tech startups and established companies in North America offer AI-powered solutions to law firms, corporate legal departments, and legal service providers
• The key companies operating in the legal artificial intelligence market include Casetext Inc.; DocuSign Inc.; IBM Corporation; and LexisNexis

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