AI Software Market in Legal Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

AI Software Market in Legal Industry is Segmented by Component (Solution, Services), Deployment (On-Premise, Cloud), Application (Legal Research, Contract Review and Management, E-Billing, E-Discovery, Compliance, Case Prediction, Other Applications), End-user Industry (Law Firms, Corporate Legal Departments, Other End-user Industries), and Geography.

Market Snapshot

Study Period: 2018 - 2026
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 28 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The AI software market in the legal industry is projected to register a growth of over 28% over the forecast period 2021 - 2026. The law firms have always been at the forefront of using emerging technological advancements for productivity, efficiency enhancements, and artificial intelligence (AI) to play an integral role in supporting such initiatives. AI is becoming the next big technology for law firms. The legal sector is witnessing increased utility in its application owing to the developments and the computing capacity improvement in NLP, neural networks & chips.

  • The market studied is witnessing an increase in the adoption of artificial intelligence-based solutions to the efficient management of the entire legal process. For example, in-house legal departments spend 50% of their time reviewing contracts even as necessary as a non-disclosure agreement, creating bottlenecks and slowing down business and deals. AI is helping lawyers focus their review on each contract’s relevant segments, saving a significant amount of lawyer-hours.
  • Rising demand for automation in applications like eDiscovery, contract review and management, case prediction, and compliance are boosting the market’s growth. The automation in contract management enhances the sales team’s ability to finalize deals, improves relationships with customers, and impacts many other areas of an organization to enable companies to realize tangible value.
  • According to a survey of near to 100 law firms by real estate giant CBRE, 48% of firms are already using AI software in their businesses, and 41% have immediate plans to implement the same. The survey also found 61% of the companies are using AI to generate and review legal documents, 47% for due diligence purposes, and 42% for research.
  • According to the “2020 Legal Analytics Study” conducted by LexisNexis, about 92% of the law firms are planning to increase their adoption of AI for analytics in the next 12 months. This is majorly driven by competitive pressures such as the need to excel in the business (57%), and client expectations (56%). The survey also found that about 73% of the companies are already using AI to gain competitive insights on opposing counsel, parties, judges. About 59% and 48% of the companies are using AI to determine case assessment and case strategy, respectively.
  • The COVID-19 challenge is unprecedented, both for the economy and for aspects of the legal system. Law-firms has to prepare for a wide range of scenarios, the likelihood of which will depend on the efficient implementation of public-health- and economic-policy interventions.
  • With the increasing economic crisis due to the COVID-19 pandemic, the increasing shareholder’s litigations, supplier disputes will create opportunities for the legal industry players in the future. Furthermore, distressed debt, intellectual property, and force majeure disputes will drive the growth of the market in the coming years.

Scope of the Report

Artificial intelligence is an incorporated result of computer vision, machine learning, evolutionary computation, data mining, and multi-agent systems. AI is transforming the everyday practice of law, changing the skills and professions required by the lawyers. Some of the applications of AI in the legal industry include contract review and management, legal research, e-billing, and e-discovery, among others. The market scope includes components and deployment types adopted and used by the end-user industries such as law firms and corporate legal departments, among others.

Legal Research
Contract Review and Management
Case Prediction
Other Applications
End-user Industry
Law Firms
Corporate Legal Departments
Other End-user Industries
North America
Asia Pacific
Latin America
Middle East and Africa

Report scope can be customized per your requirements. Click here.

Key Market Trends

Contract Review and Management is Expected to Witness a Significant Growth Rate

  • AI software is predominantly making its presence felt in the legal industry by helping and automating various tasks. AI tools are used to complete any number of contract-related tasks from clause identification and extraction to contract review and management.
  • AI is improving how firms and in-house legal departments are handling contracts by centralizing contract management through a single AI tool and automating routine tasks across the contract management lifecycle.
  • Furthermore, AI is transforming the contract review and management services in the Asia –Pacific region. For instance, One of India's leading firms, Cyril Amarchand Mangaldas, is leveraging the power of AI for contract analysis and review by partnering with Canadian AI assistant Kira Systems.
  • In October 2019, LawGeex, a significant contract review automation (CRA) provider, released LawGeex 5.0, which automates the review and approval of routine contracts incorporating customer requests in three vital areas such as accelerated deployment, data-driven optimization, and extended coverage.
  • Nowadays, AI-powered chatbot asks a series of questions before guiding users through the legal process to avoid parking tickets, sue corporations for data breaches, and even get money back when airline prices drop. According to AskCody, chatbots are 90% faster and 10% more accurate than humans at contract review.

North America is Expected to Hold a Major Share

  • North America is projected to hold a significant share owing to the rising adoption of cutting-edge technologies such as AI. Furthermore, the region has a strong foothold of vendors who provides AI software and platforms for the legal Industry.
  • Some of them include OpenText Corporation, IBM Corporation, Ross Intelligence Inc., Veritone Inc., and Neota Logic Inc., among others. In the recent past, Ross Intelligence Inc. collaborated with Jackson Lewis, one of the leading law firms in the United States, to deploy the Ross Intelligence AI legal research solution firm-wide.
  • AI is helping the lawyers improve their productivity, which is positively boosting the market's growth in the region. For example, according to lawyers for IBM Corporation, adopting AI has cut down the time their lawyers spent for analyzing the trademark search results by near to 50%. This includes algorithms that help to model the outcome of trademark litigation by analyzing a wide variety of factors.
  • AI is also used to surface previously hidden and hard to manage contractual obligations, to increase compliance, and maximize revenue. Agiloft, a United States-based player in commerce lifecycle management, partnered with Xeeva, an international provider of AI-powered procurement software, to develop a completely integrated source-to-contract experience for the enterprise customers of the company. Available in 18 languages and already in use in over 45 countries, the platform from Xeeva is built with patented AI at its core, which is integrated across the entire suite to drive superior results in organizations quantifiably.

Competitive Landscape

The AI software market in the legal industry is neither consolidated nor fragmented as many large companies and startups have made a well-established presence in the market. The market is emerging and over the forecast period. The AI software market in the legal industry is neither consolidated nor fragmented as many large companies and startups have made a well-established presence in the market. The market is emerging, and over the forecast period, the market competition is expected to be intense owing to the entry of new players. Vendors are offering solutions and platforms for different applications as per end-user industries needs. The companies are adopting numerous organic and inorganic growth strategies, such as solution enhancements, partnerships, agreements, mergers, and acquisitions, to further expand their presence in the global legal AI software market.

  • In October 2019, with the help of IBM Watson Knowledge Studio and the Watson Discovery service, QNC GmbH, a legal tech firm, was able to launch its new “digital law firm” subscription service and provide affordable, fast, flat-rate online legal services to small enterprises in Germany.
  • In October 2019, ROSS Intelligence and Clio announced an integration between their innovative AI-enabled products. Cilo is one of the significant players in the cloud-based legal technology provider. As a result of this partnership, all Clio customers will have a chance to use ROSS’s Document Analyzer.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of Impact of COVID-19 on the Industry


    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand for Automation and Increasing Number of Litigations in the Legal Industry

      2. 5.1.2 Growth in the Utilization of AI by Legal Companies to Complete Legal Cases

    2. 5.2 Market Challenges

      1. 5.2.1 Data Privacy Concerns of the Confidential and Legal Data


    1. 6.1 Component

      1. 6.1.1 Solution

      2. 6.1.2 Services

    2. 6.2 Deployment

      1. 6.2.1 On-Premise

      2. 6.2.2 Cloud

    3. 6.3 Application

      1. 6.3.1 Legal Research

      2. 6.3.2 Contract Review and Management

      3. 6.3.3 E-Billing

      4. 6.3.4 E-Discovery

      5. 6.3.5 Compliance

      6. 6.3.6 Case Prediction

      7. 6.3.7 Other Applications

    4. 6.4 End-user Industry

      1. 6.4.1 Law Firms

      2. 6.4.2 Corporate Legal Departments

      3. 6.4.3 Other End-user Industries

    5. 6.5 Geography

      1. 6.5.1 North America

      2. 6.5.2 Europe

      3. 6.5.3 Asia Pacific

      4. 6.5.4 Latin America

      5. 6.5.5 Middle East and Africa


    1. 7.1 Company Profiles

      1. 7.1.1 Luminance Technologies Ltd.

      2. 7.1.2 ROSS Intelligence Inc.

      3. 7.1.3 Kira Inc.

      4. 7.1.4 IBM Corporation

      5. 7.1.5 LexisNexis Group Inc.

      6. 7.1.6 CS Disco Inc.

      7. 7.1.7 Thomson Reuters Corporation

      8. 7.1.8 Veritone Inc.

      9. 7.1.9 Casetext Inc

      10. 7.1.10 Neota Logic Inc.

      11. 7.1.11 Brainspace Corporation

      12. 7.1.12 Smokeball Inc.

      13. 7.1.13 Text IQ Inc.

      14. 7.1.14 OpenText Corporation

    2. *List Not Exhaustive


You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The AI Software Market in Legal Industry market is studied from 2018 - 2026.

The AI Software Market in Legal Industry is growing at a CAGR of 28% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

OpenText Corporation, ROSS Intelligence Inc., Luminance Technologies Ltd., LexisNexis Group Inc., IBM Corporation are the major companies operating in AI Software Market in Legal Industry.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!