The global legal technology market size will grow at an appreciable rate in the wake of increased productivity of clerical workers and enhanced efficiency of legal offices. Law firms are expected to bank on legal tech for transparency, fast processing of information, time management, reduced chances of errors, and efficient use of resources. An emphasis on natural language processing (NLP), AI, and robotic process automation (RPA) will gain prominence to manage legal matters seamlessly.
Legal Technology (Legal Tech) is a widely used term to solve problems that were earlier impossible to overcome, mainly due to complexity issues, and massive volumes of data. Compliance and Legal tech companies have introduced regulatory and filling services and reduced costs. Assorted technological solutions, including virtual conferences, online case filings, court hearings, and client meetings, along with document automation and automated litigation management, will gain considerable traction over the next few years. For instance, Crunchbase data claims that legal tech companies poured USD 1 billion in venture capital as of September 2021.
Legal tech developers are poised to inject funds into advanced technology amidst the COVID-19 outbreak. The pandemic reflected the need for more legal functions for legal departments, triggered tailwinds, and spurred the demand for cloud and other state-of-the-art technologies. Moreover, heightened demand for corporate transaction work post-COVID has prompted tech developers to prioritize machine learning and NLP technologies. To illustrate, the trend for video conferencing became pronounced during the COVID-19 period and law firms emphasized apps that use AI technology. AI became trendier to boost customer experience by garnering data in real-time, thereby providing customized services
The pandemic acted as a catalyst in boosting the adoption of legal tech across emerging and advanced economies. According to Wolters Kluwer's Future Ready Lawyer 2021 survey, 80% of lawyers reported a surge in their needs for technology solutions due to the outbreak. Remote hearing furthered the need for collaborative platform-based technology such as blockchain and contract reviewing gained considerable impetus.
North America; Europe; Asia Pacific; South America; MEA
The rising footprint of user-friendly automation processes has expedited innovation strategies to optimize and streamline operating models. Law firms have also cashed in on data analysis to process and assess legal matters. Prominently, judiciary and dispute-settlement processes have received impetus through AI-based research tools. The AI-enabled system has become sought-after to streamline arbitration processes by summarizing, researching, and assessing the pieces of evidence and arguments.
As legal tech solutions gain traction for high scalability and fast data processing, legal firms have shown an increased inclination for AI to keep up with defensibility and consistency. The adoption of advanced software solutions for personal injury case management, intake management, and legal project management will boost the legal technology market forecast.
The U.S. and Canada are expected to provide promising growth opportunities following the investments in AI and advanced software technologies to automate the lead generation process and minimize costs with high automation of workflows. To illustrate, in August 2021, Docket Alarm revealed a new Enhance feature to transform litigation reports and email alerts in various formats and add live links to complaints and dockets, case studies, judges, and firms.
Europe’s legal technology market share will grow due to the bullish adoption of legal technology and an exponential volume of information. Legal departments anticipate attorneys to invest in software tools to bolster productivity and efficiency. Law firms and legal departments are expected to augment investments in technological solutions. An explosion of demand for legal expertise across the U.K., France, Italy, Germany, and Spain, will trigger the need for advanced legal technology services.
While the legal firms had been slow adopters of technologies, the next few years could witness an influx of investments in digitization and technology software. To illustrate, in April 2021, Rocket Lawyer announced an infusion of USD 223 million to propel legal tech innovation. In doing so, Rocket Lawyer joined hands with Vista to ramp up the Rocket Legal Cloud™ platform.
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