Legal Software (focus on machine learning) Global Market Report 2024

The legal software (focus on machine learning) market size has grown rapidly in recent years. It will grow from $0.44 billion in 2023 to $0.5 billion in 2024 at a compound annual growth rate (CAGR) of 13.8%. The growth observed during the historical period can be attributed to several key factors, including an increase in legal workloads, the pursuit of cost efficiency in legal operations, effective document management solutions, the need for regulatory compliance, and the use of advanced research tools. These factors collectively contributed to the growth of the legal software market during that period.

The legal software (focus on machine learning) market size is expected to see rapid growth in the next few years. It will grow to $0.81 billion in 2028 at a compound annual growth rate (CAGR) of 12.7%. The anticipated growth in the forecast period can be attributed to various key factors, including the adoption of predictive analytics, the use of natural language processing (NLP) for more efficient legal tasks, the expansion of remote work and collaboration tools, global market expansion, and the increased focus on cybersecurity and privacy in legal operations. Major trends expected to shape this period include the use of legal chatbots for enhanced client interactions, compliance with data privacy regulations, the integration of legal analytics for decision-making, the development of virtual legal assistants, and the automation of legal processes to improve efficiency and productivity within the legal sector.

The machine learning market is experiencing growth driven by the increasing demand for intelligent business processes within law firms. This entails the integration of artificial intelligence (AI) and machine learning into various aspects of business operations. AI represents systems capable of performing tasks that traditionally require human intelligence. Developed countries like the USA have widely adopted software solutions to gain benefits such as streamlined contract management and efficient analysis of legal data. Machine learning assists legal professionals and firms in managing large volumes of data and extracting valuable insights. According to the Legal Technology Survey Report by ABA Surveying, a significant number of large firms with over 500 attorneys reported using AI, and many others were considering AI adoption. The growing demand for machine learning in law firms is a key driver for this market.

The technology components of legal software encompass machine learning, deep learning, and natural language processing. Natural language processing involves the use of algorithms to interpret and manipulate human language, representing a subfield at the intersection of linguistics, computer science, and artificial intelligence. Legal software can be deployed in various modes, including cloud-based solutions and on-premise installations. The applications of legal software predominantly include Ediscovery, which involves the identification and collection of electronically stored information for legal purposes, and legal research. Legal software serves a wide range of end users, such as corporate legal departments and law firms, to enhance their operational efficiency and effectiveness in managing legal matters.

The legal software market research report is one of a series of new reports that provides legal software market statistics, including legal software industry, global legal software market size, regional shares, competitors with a legal software market share, detailed legal software market segments, market trends and opportunities, and any further data you may need to thrive in the legal software industry. This legal software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The legal software market is expected to experience growth due to the increasing demand for remote work. Remote work, or telecommuting, refers to a work arrangement where employees perform their job tasks from a location outside the traditional office setting. Remote work offers legal professionals enhanced flexibility, productivity, cost savings, work-life balance, access to a broader talent pool, and greater adoption of technology. For example, in June 2023, Forbes Media LLC reported that a significant portion of the US workforce was working from home, with a substantial projected increase by 2025. This trend toward remote work is propelling the growth of the legal software market.

The machine learning market faces a hindrance in the form of limited awareness among law firms. Data, information, and knowledge are crucial assets for law firms in their decision-making processes. These firms are operating in an increasingly competitive landscape, with accounting firms re-establishing their legal practices and reducing the available legal work. A survey by Bloomberg Law revealed that only a small percentage of law firms currently use machine learning or AI, indicating a knowledge gap and underutilization of this technology. This lack of awareness serves as a barrier to the growth of the legal software market.

Several online platforms have emerged, offering clients connections with attorneys for various straightforward services like trademark registration, lease agreements, will registrations, contract executions, and resolution of consumer complaints. LegalZoom, a US-based firm, provides access to attorneys without imposing hourly fees, and its documents are widely accepted by courts and government agencies across all 50 states. This surge in online services is expected to fuel the demand for legal software.

Prominent companies in the legal software market are focusing on innovative products such as LZ Books to ensure reliable services for their clientele. LZ Books is a legal software solution crafted for go-to legal and accounting advisors. In August 2023, LegalZoom.com Inc., a US-based legal software company, unveiled LZ Books. This accounting software caters to small business owners, offering features like expense and income tracking, invoicing, payments, and the ability to link bank accounts for automated income and expense categorization, simplifying bookkeeping processes.

In August 2023, Thomas Reuters Corporation, a Canada-based information services and media company, acquired Casetext Inc. for $650 million. This acquisition was intended to furnish Thomas customers with generative AI solutions and redefine the professional landscape through the utilization of generative AI technology. With the purchase, Thomas Reuters Corporation aims to expand its market presence in generative AI products. Casetext Inc. is a US-based firm specializing in legal software solutions.

Major companies operating in the legal software (focus on machine learning) market include Microsoft Corporation, International Business Machines Corporation, Google LLC, Baidu Inc., Hewlett Packard Enterprise Development LP, Intel Corporation, SAP SE, SAS Institute Inc., BigML Inc., Fair Isaac Corporation, Wipro Limited, Nuance Communications Inc., KNIME.com AG, RapidMiner Inc., Angoss Software Corporation, H2O.ai Inc., Alpine Data Labs Inc., Domino Data Lab Inc., Dataiku Inc., Luminoso Technologies Inc., TrademarkVision Pty Ltd., Fractal Analytics Inc., TIBCO Software Inc., Teradata Corporation, Dell Technologies Inc., Oracle Corporation, Legal Files Software Inc., Rocket Matter LLC, RELX Group PLC, Themis Solutions Inc., MyCase Inc., Smokeball Technologies Pty Ltd., PracticePanther Legal Software LLC, Zola Media LLC, Abacus Data Systems Inc., CosmoLex Inc., TimeSolv Corporation, Bill4Time LLC, Merus Inc., CaseFleet LLC, Filevine Inc.

The Asia-Pacific was the largest region in the legal software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the legal software market during the forecast period. The regions covered in the legal software (focus on machine learning) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the legal software (focus on machine learning) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The legal software market includes revenues earned by entities by offering software which is used to deliver solutions and services using artificial intelligence and machine learning for corporate legal departments and law firms. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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