AI Software Market In Legal Industry Market Size

Legal AI Software Market Analysis

The AI Software Market In Legal Industry is expected to grow from USD 2.19 billion in 2024 to USD 3.64 billion by 2029, at a CAGR of 10.70% during the forecast period (2024-2029).

Artificial intelligence (AI) has always been at the forefront of utilizing new technical breakthroughs for productivity and efficiency improvements in the legal industry. Also, due to the advancements and the increase in processing power in NLP, neural networks, and chips, the legal sector is observing improved value in its application.

• The legal industry has started implementing AI technologies more frequently to handle legal operations effectively. For instance, an internal legal department often spends 50% of its time examining contracts, even those as simple as non-disclosure agreements, slows down operations and causes unnecessary bottlenecks. By enabling lawyers to concentrate their review on the pertinent sections of each contract, AI can save countless hours.
• The market is expanding due to the growing demand for automation in fields including eDiscovery, contract review and management, case prediction, and compliance. In order to help businesses generate tangible value, automation in contract management improves a team's capacity to close agreements, strengthens connections with clients, and positively impacts many other areas of the organization. 
• It costs more money to not comply with growing standards like HIPAA, PCI DSS, GDPR, and other financial regulations. According to Globalscape, it costs firms in the financial sector roughly USD 5.47 million to comply with IT rules for data protection, and when a company takes into account fines, lost productivity, and profits, the cost of non-compliance is close to USD 15 million.
• The intersection of AI and law is anticipated to increase significantly throughout the forecast time period. Artificial intelligence (AI) can also be used for a variety of tasks, including due diligence (to review a contract, conduct legal research, or perform electronic discovery functions to do due diligence), prediction technology (to predict the likely outcome of cases being decided before a court of law), legal analytics (to provide data points from previous case laws and judgments and precedent law that lawyers can use in their present cases), automation of documentation, Intellectual property, a variety of other tasks, and several others.
• Due to the complexity involved in legal research, it can be time-consuming and tedious. The necessity for AI is further highlighted by the shorter deadlines that most law firms get to achieve efficient and precise legal research work. AI software can dramatically increase productivity and accuracy, helping judges make quick decisions. For instance, the ROSS Intelligence company uses automated technologies to examine contracts quickly. The program emphasizes pertinent documents. Legal research can be substantially enhanced and streamlined with the appropriate software.
• In addition to several domestic legislative frameworks, high-risk AI systems will be clearly and thoroughly regulated in the European Union with the new Artificial Intelligence Act, which is anticipated to be finalized in 2022. Although many AI-related legislation suggestions have been put out, the United States has not embraced the European Commission's suggested all-encompassing approach to AI regulation.
• On the other hand, a wide range of corporate legal departments and law firms bought AI/machine learning solutions for their law libraries due to the outbreak of COVID-19. In law libraries, technology has a significant role. eDiscovery software and other artificially intelligent platforms have benefited in the fight against COVID-19. Such software, which has the potential to speed up medical researchers' investigations into how to cure COVID-19, is created to assist litigation attorneys in getting to the heart of a case more rapidly.