Artificial Intelligence in Law Market Size was valued at USD 0.8 Billion in 2022. The Artificial Intelligence in Law market industry is projected to grow from USD 1.09 Billion in 2023 to USD 11.20 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 33.80% during the forecast period (2023 - 2032). Increased services and solutions provided by AI software and technology development are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for artificial intelligence in law is driven by the rising services and solutions provided by AI software. The AI-powered software increases the efficiency of document examination and analysis. Businesses such as ROSS Intelligence offer artificial intelligence tools to help with the inspection and analysis of legal documents through the use of language processing technologies.
Additionally, legal research, eDiscovery, legal analytics, and due diligence have all shown benefits from AI. Legal analytics assists in sitting through vast amounts of data to find trends that are relevant to legal professionals. Divorce proceedings might take up to a year to complete. On the other hand, using AI technology allows clients to find divorce solutions on their own in less time. Artificial intelligence (AI) has started to transform the legal industry by enhancing human capabilities and freeing them up to work on other projects like deal-making and advice.
In the LegalTech AI industry, some products are specialized, while others are more all-purpose AI solutions. Legal analytics is a specialty of organizations such as IBM Corporation and Zero. Other businesses that specialize in providing contract management systems include iManage and Apttus Corporation. The market for legal tech AI isn't developed enough. The use of AI in legal tech in many applications and its effects on the legal industry is still being researched. Demand for AI software is driven by its ability to do human-like tasks, including learning, decision-making, and planning.
Moreover, gaining traction in the legal industry, chatbots are predicted to become a popular trend in the market. AI facilitates timely and effective task completion for lawyers. Automation in contract management enhances a team's ability to close deals, fortifies relationships with clients, and has a positive impact on numerous other parts of the business in order to assist enterprises in creating concrete value. Noncompliance with increasingly prevalent standards like HIPAA, PCI, DSS, GDPR, and other financial rules results in higher expenses. scape estimates that financial institutions must pay around USD 5.47 million to comply with IT regulations pertaining to data protection; when fines, lost earnings, and productivity are included, the total cost of noncompliance approaches USD 15 million. As a result, it is anticipated that throughout the projection period, demand for AI in law will increase due to the rising services and solutions provided by AI software. Thus driving the Artificial Intelligence in Law market revenue.
The Artificial Intelligence in Law market segmentation, based on application, includes document management systems, e-Discovery, practice and case management, e-billing, and others. The e-Discovery segment dominated the market, accounting for the maximum market revenue due to locating, gathering, processing, examining, and creating electronic documents and data. The expansion of this segment has been driven by the legal industry's digitalization and the resulting increase in the volume of electronic data.
The Artificial Intelligence in Law market segmentation, based on end users, includes lawyer and client. The lawyer category generated the most income due to increased investment in AI technology. Lawyers benefited greatly from the AI's capacity to handle and analyze enormous volumes of legal data quickly and accurately, which has contributed to their notable rise in the market. The advantages of AI, including increased productivity, cost-effectiveness, enhanced decision-making, and improved customer care, are driving the demand for the technology in lawyers.
Figure 1: Artificial Intelligence in Law Market, by End User, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Artificial Intelligence in Law market area will dominate this market, owing to an increase in requirement for cost-effectiveness and efficiency in legal operations. In addition, the growing advancement in technology and the volume of legal data will boost market growth in this region.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: ARTIFICIAL INTELLIGENCE IN LAW MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Artificial Intelligence in Law market accounts for the second-largest market share due to the advancement in machine learning, artificial intelligence, and natural language. Further, the German Artificial Intelligence in Law market held the largest market share, and the UK Artificial Intelligence in Law market was the fastest-growing market in the European region.
The Asia-Pacific Artificial Intelligence in Law Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the rising adoption of new AI-based legal software. Moreover, China's artificial intelligence market held the largest market share, and the Indian artificial intelligence market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Artificial Intelligence in Law market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Artificial Intelligence in Law industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Artificial Intelligence in Law industry to benefit clients and increase the market sector. In recent years, Artificial Intelligence in Law industry has offered some of the most significant advantages to lawyers. Major players in the Artificial Intelligence in Law market, including Casetext Inc., Catalyst Repository Systems, Ebrevia, Everlaw, FiscalNote, Judicata, Justia, Knomos Knowledge Management Inc., Lawgeex, Legal Robot, Inc., and others, are attempting to increase market demand by investing in research and development operations.
LexisNexis is a data and analytics firm with 10,500 employees serving clients in over 150 countries. Organizational teams are revolutionizing their customers' work processes by fusing unmatched legal and commercial knowledge with technology and analytics. By integrating machine learning, natural learning processing, visualization, and artificial intelligence into its worldwide legal and news database, the company is providing customers with strong, new decision tools and analytics. The goal of the organization is to promote the rule of law ly, as this is essential to fostering social harmony and economic growth. Together with Reed Exhibitions, LexisNexis Risk Solutions, and Elsevier, the company is a division of RELX. RELX is a supplier of information-based analytics and decision support technologies that help business and professional clients make better decisions, achieve outcomes, and work more efficiently. In May 2023, LexisNexis Group Inc. recently revealed the launch of Nexis Hub, a new tool that supports and streamlines any research workflow, reducing time to insight. The revolutionary new solution, intended to satisfy the needs of busy professionals, combines with Google Chrome and Microsoft Word to assist users ease the hard and time-consuming process of collecting information and preparing reports.
Luminous Power Technologies is a prominent and trustworthy company that offers a diverse range of innovative products in the power backup and residential solar markets. Its six thousand workers service millions of clients and over 60,000 channel partners through its seven manufacturing facilities, more than 28 sales offices in India, and presence in over 36 countries. Customer Delight through Innovation & Passion with an emphasis on Execution & Teamwork has always been its philosophy. Luminous is passionate about innovating to improve the quality and efficiency of living. In May 2023, the AI-powered "Ask Lumi" chatbot will be the most recently innovative use of Luminance Technologies Ltd.'s specialized large legal language model (LLM). The first chatbot powered by this legal-grade AI is called "Ask Lumi." Users can ask the AI questions about any contract they have opened in Microsoft Word and get immediate answers.
Catalyst Repository Systems
eBRIVIA
FiscalNote
Judicata
Justia
Knomos Knowledge Management Inc.
Legal Robot, Inc.
May 2023: LexisNexis Group Inc. introduced the much-anticipated state court legal analytics API. Customers can now access Lex Machina's state court analytics and data directly through the API, facilitating a more thorough integration of the company's superior legal analytics into an already seamless workflow. Additionally, with the new state court API from Lex Machina, users can now combine their internal data with the company's superior legal analytics for both state and federal courts.
April 2023: Luminous Technologies Ltd. announced that it has joined forces with Nexa, an alternative service legal provider, to integrate Luminous's next-generation artificial intelligence (AI) into the NexaConnex legal service offering. This integration will enable NexaConnex's clients to increase the amount of time they spend on high-value client activities and achieve much-needed efficiencies in their daily work.
Document Management System
E-Discovery
Practice and Case Management
e-Billing
Others
Lawyer
Client
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 0.8 Billion |
| Market Size 2023 | USD 1.09 Billion |
| Market Size 2032 | USD 11.20 Billion |
| Compound Annual Growth Rate (CAGR) | 33.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â oCasetext Inc., Catallyst Repository Systems, eBREVIA, Everlaw, FiscalNote, Judicata, Justia, Knomos Knowledge Mnagement Inc., Lawgeex and Legal Robot, Inc. |
| Key Market Opportunities | Rising latest Innovations |
| Key Market Dynamics | Increased services and solutions Technological Development |
Frequently Asked Questions (FAQ) :
The Artificial Intelligence in Law market size was valued at USD 0.8 Billion in 2022.
The market is projected to grow at a CAGR of 33.80% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are Casetext Inc., Catalyst Repository Systems, eBREVIA, Everlaw, FiscalNote, Judicata, Justia, Knosmos Management Inc., Lawgeex, and Legal Robot, Inc.
The e-Discovery category dominated the market in 2022.
The lawyer had the largest share in the market.
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