DUBLIN--(BUSINESS WIRE)--The "AI Software Market in Legal Industry - Growth, Trends, and Forecast (2019 - 2024)" report has been added to ResearchAndMarkets.com's offering.
The AI software market in the legal industry is expected to register a CAGR of over 28% over the forecast period 2019-2024.
AI is fast becoming the next big technology in productivity and efficiency tools for law firms. With the computing capacity improvement and the developments in the field of NLP, neural networks & chips, the algorithm has further improved the potential and has resulted in increased utility in its application in the legal sector.
- The market is witnessing an increase in the adoption of AI solutions to manage the entire legal process efficiently. For instance, In-house legal departments spend 50% of their time reviewing contracts even as basic as a Non-Disclosure Agreement, creating unnecessary bottlenecks and slowing down business and deals. AI is helping lawyers to focus their review on the relevant segments of each contract, saving countless lawyer-hours.
- Increasing demand for automation in applications such as contract review and management, eDiscovery, case prediction, and compliance are boosting the market's growth positively. The automation of contract management enhances the sales team's abilities to finalize deals, improves relationships with customers, and impacts many other areas of an organization to enable companies to realize real, tangible value.
- According to a survey of more than 100 law firms by real estate firm CBRE, 48% are already using AI software in their businesses, and 41% have immediate plans to do the same. The survey found 61% of the companies are using AI to generate and review legal documents, 47% for due diligence purposes, and 42% for research.
- Regions such as North America and Europe are witnessing strong adoption of AI solution in the legal industry. Furthermore, AI Is transforming the legal services industry of Asia. For instance, one of the leading law firms of Singapore, the Wong Partnership adopted AI technology from London-based AI firm Luminance to support its corporate/M&A practice. 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.
Major Market Trends
Corporate Legal Department End-user Industry is Expected to Witness the Highest Growth Rate
- The corporate legal department segment is expected to witness the highest growth rate over the forecast period, as legal AI software and Platforms helps them in reducing the cost and streamlining work and processes, reducing repetitive tasks, and increasing productivity.
- Some big companies, such as JP Morgan have created their own AI solutions. For instance, JPMorgan Chase's legal team used to review commercial loan agreements manually. In 2017, JPMorgan built Coin (Contract Intelligence), an AI engine to automate legal work that cut up to 360,000 hours of agreement review by lawyers and loan officers each year. The company is rolling out Coin on other complex legal processes, such as reviewing credit default swaps and custody agreements. Additionally, British Telecom used iManage RAVN AI to focus on contract analysis and was able to identify approximate savings of 30 million pounds.
- According to a LexisNexis survey of legal departments, 20% to 25% of legal departments use AI in at least one area. The number is expected to increase with the growing adoption of Ai technology by the various corporate legal department.
- Moreover, AI solutions can create form contracts that have standard terms and conditions according to parameters set by the legal department. Some companies are using contract management software with AI capabilities to help them organize contract data as well as locate data.
North America is Expected to Hold a Major Share
- North America is expected to hold a major share owing to high adoption of advanced technologies such as AI. Moreover, the region has a strong foothold of vendors who provides AI software and platforms for legal Industry.
- Some of them include IBM Corporation, OpenText Corporation, Ross Intelligence Inc., Veritone Inc., and Neota Logic Inc., among others. Ross Intelligence Inc. is one of the major vendors in the market. In March 2018, Ross Intelligence Inc. collaborated with Jackson Lewis, one of the leading law firm in the United States, to deploy the Ross Intelligence AI legal research solution firm-wide.
- AI is helping the lawyers to improve their productivity, which is boosting the market's growth positively in the region. For instance, According to lawyers for IBM Corporation, adopting AI has cut down the total time their lawyers spent analyzing the trademark search results by approximately 50%. This includes algorithms which try to model the outcome of trademark litigation by analyzing a broad variety of factors.
- An increasing number of litigations is impacting the market's growth positively. For instance, several Houston-area public companies spent millions of dollars in court costs. According to American City Business Journals, nine local companies recorded more than USD 500,000 in after-tax expenses for legal, litigation, and settlement costs in 2017. Combined, those nine companies spent USD 68.98 million.
The AI software market in the legal industry is neither consolidated nor fragmented as many large companies and start-ups 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.
- January 2019 - OpenText Corporation announced that the company had acquired Catalyst Repository Systems, Inc., one of the leading provider of eDiscovery solutions for top law firms and corporate legal departments. The joint strength of Catalyst and OpenText combines the powerful set of solutions to help corporate legal departments and law firms leverage the opportunities of digital transformation, automation, AI, and machine learning.
- September 2018 - Kira Systems, an AI-driven contract analytics software firm, announced a USD 50 million minority investment from Insight Venture Partners. The company provides AI software Kira, which helps to reduce the time spent on document review by 20% to 90% and enhance the accuracy of the review.
Key Topics Covered
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Growing Demand for Automation in Legal AI Software
4.3.2 Increasing Number of Litigations in the Legal Industry
4.3.3 Growth in Use of AI by Legal Companies to Complete Legal Case
4.4 Market Challenges
4.4.1 Data Privacy Concerns of the Confidential and Legal Data
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Technology Snapshot
5 MARKET SEGMENTATION
5.1 By Component
188.8.131.52 Software Solution
5.2 By Deployment
5.3 By Application
5.3.1 Legal Research
5.3.2 Contract Review and Management
5.3.6 Case Prediction
5.3.7 Other Applications
5.4 By End-user Industry
5.4.1 Law Firms
5.4.2 Corporate Legal Departments
5.4.3 Other End-user Industries
5.5.1 North America
5.5.4 Latin America
5.5.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Luminance Technologies Ltd.
6.1.2 ROSS Intelligence Inc.
6.1.3 Kira Inc.
6.1.4 IBM Corporation
6.1.5 Nalytics (Nalanda Technology Limited)
6.1.6 Casetext Inc.
6.1.7 CS Disco Inc.
6.1.8 Thomson Reuters Corporation
6.1.9 Veritone Inc.
6.1.10 LexisNexis Group Inc.
6.1.11 Neota Logic Inc.
6.1.12 Brainspace Corporation
6.1.13 Smokeball Inc.
6.1.14 Text IQ Inc.
6.1.15 OpenText Corporation
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
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