Legal AI Software Market Trend, Share, Growth, Size and Forecast 2030

Legal AI Software Industry Prospective:

The global legal AI software market size was evaluated at $2,000 million in 2022 and is slated to hit $5,000 million by the end of 2030 with a CAGR of nearly 12.14% between 2023 and 2030.

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Legal AI Software Market: Overview

In recent times and post-COVID-19 pandemic, the legal sector has been making use of artificial intelligence to improve operational efficiency and output of the legal sector. Additionally, the growing need for efficient natural language processing and neural networks is likely to enhance the popularity of the use of AI software in various legal activities. A paradigm shift in the world of technology is predicted to steer the growth of the market globally.  

Key Insights

• As per the analysis shared by our research analyst, the global legal AI software market is projected to expand annually at the annual growth rate of around 12.14% over the forecast timespan (2023-2030)
• In terms of revenue, the global legal AI software market size was evaluated at nearly $2,000 million in 2022 and is expected to reach $5,000 million  by 2030.
• The global legal AI software market is anticipated to grow rapidly over the forecast timeline owing to escalating demand for optimum resource utilization along with large-scale use of artificial intelligence by a slew of legal firms to reduce the time for legal suit completion.
• In terms of components, the software segment is slated to register the highest CAGR over the forecast period.
• Based on deployment mode, the cloud segment is predicted to lead the segmental growth in the forecast period.
• Based on end-user, the corporate legal departments segment is projected to dominate the segmental space over the forecast timeline.
• Region-wise, the Asia-Pacific legal departments industry is projected to register the fastest CAGR over the assessment timeline.

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Legal AI Software Market: Growth Factors

Growing need for optimizing the utilization of resources & demand for AI tools for legal cases to drive the global market trends

Escalating demand for optimum resource utilization along with large-scale use of artificial intelligence by a slew of legal firms to reduce the time for legal suit completion will steer the global legal AI software market trends. A rise in the number of litigation suits has culminated in massive demand for legal AI software globally for reducing the time of hearing legal cases and providing decisions based on the urgency of lawsuit hearings and legal framework within a stipulated & decided timespan. An escalating need for the automation of the work of attorneys and clerical staff in private law firms has led to a surge in the use of legal AI software. New product launches have contributed notably towards the expansion of the global market size.

For instance, in November 2023, Thomson Reuters Corporation, a key tech firm based in Canada, launched generative AI-driven solutions for assisting legal professionals in their work. In May 2023, William AI, a key legal tech firm, declared the launching of a newly AI-driven legal tool, thereby bringing a paradigm shift in the legal sector.

Legal AI Software Market: Restraints

Less awareness about the advantages of AI solutions among lawyers hinders the growth of the global industry

Low awareness among law firms about product benefits is projected to hinder the expansion of the global legal AI software industry. Furthermore, the growing need for expertise required for handling the software can further threaten the growth of the industry across the globe. The huge price of legal AI software can result in its lesser adoption in small-scale & medium-scale legal firms and this can further impede the global industry demand.  

Legal AI Software Market: Opportunities

Escalating need for accuracy in work to open new facets of growth for the global market 

Growing demand for accuracy and the need to save higher costs of the workforce have opened new growth opportunities for the global legal AI software market.  Escalating the need for automation in domains such as contract review & management, eDiscovery, and case prediction will embellish the market growth across the globe.

Legal AI Software Market: Challenges

Stringent laws regulating product utilization can prove to be a huge challenge for the growth of the industry across the globe

Strict government legislation governing product use can pose a big challenge to the global legal AI software industry expansion in the coming years. Furthermore, a rise in the licensing of products in certain developed economies along with strict implementation of laws pertaining to the use of AI tools in the Judicial system can decline the growth of the global industry.

Legal AI Software Market: Segmentation

The global legal AI software market is sectored into component, deployment mode, end-user, and region.

In terms of component, the legal AI software market across the globe is segregated into software and services segments. Furthermore, the software segment, which acquired nearly 67% of the global market share in 2022, is anticipated to record the highest annual growth rate in the forecast timeframe. Moreover, the segmental surge over the forecast timeline can be attributed to the easy installation of software on the end-user systems.

Based on the deployment mode, the legal AI software industry globally is sectored into cloud and on-premise segments. Additionally, the cloud segment, which garnered a major share of the global industry revenue in 2022, is anticipated to lead the deployment mode segment in the coming years. The growth of the segment over the period from 2023 to 2030 can be owing to a rise in the cloud-based deployment of legal AI software as it is more secure and provides strong firewalls to the data on the cloud.  

Based on the end-user, the global legal AI software market is divided into corporate legal departments and law firm segments. Furthermore, the corporate legal departments segment, which captured the highest share in the global industry in 2022, is expected to lead the segmental space in the coming eight years. The growth of the segment over the period from 2023 to 2030 can be due to the growing use of legal AI software in various corporate legal departments globally.

Legal AI Software Market: Report Scope

Legal AI Software Market: Regional Insights

North America is predicted to retain its leading status in the global legal AI software market in the forecast period

North America, which accounted for approximately three-fourths of the global legal AI software market size in 2022, will be the leading region in the forecasting years. Moreover, the market growth in North America in the next few years can be ascribed to a rise in investments in the AI business in countries such as Canada and the U.S. In addition to this, a large number of attorneys and lawyers are making use of legal AI software solutions as they help them provide accurate and quick results along with offering new solutions. The presence of key players in countries such as the U.S. will further contribute to the growth of the regional market.

The Asia-Pacific legal AI software industry is set to record the highest CAGR in the forecast timeline. The growth of the industry in the sub-continent over the forecast timeframe can be a result of a rise in the use of legal AI software for contract analysis, intellectual property, and conflict resolution. Moreover, awareness among lawyers about the use of AI tools for enhancing their work efficiency will further steer the regional industry trends.  

Legal AI Software Market: Competitive Space

The global legal AI software market profiles key players such as:

• Thomas Reuters
• Omni Software Systems
• Nalanda Technology
• CaseMine
• LawGeex
• Casetext
• LexisNexis
• Kira
• Veritone
• Luminance
• IBM Corporation
• ROSS Intelligence
• Cognitiv
• CaseMine
• LawGeex.

The global legal AI software market is segmented as follows:

By Component

• Software
• Services

By End-User

• Corporate Legal Departments
• Law Firms

By Deployment Mode

• Cloud
• On-Premise

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa