Legal AI Market To Reach $3.90 Billion By 2030 | CAGR 17.3%

Legal AI Market Growth & Trends

The global legal AI market revenue is anticipated to reach USD 3.90 billion by 2030, according to a new study by Grand View Research, Inc. It is anticipated to expand at a CAGR of 17.3% from 2025 to 2030. The ever-expanding volume of legal documents, contracts, and regulations has led to increased challenges for legal professionals in managing and extracting meaningful insights from vast amounts of information.

Legal Artificial Intelligence (AI) offers solutions such as automated document analysis and eDiscovery tools to automate and expedite information processing. AI enables the automation of repetitive tasks, such as contract review and due diligence, reducing the time and resources required for these activities. Such advantages offered by AI are increasing demand for AI in the legal industry. Using legal AI tools, legal professionals can focus on higher-value work, improving efficiency and cost savings by automating routine tasks.

AI tools are further helping identify risks, predict case outcomes, and offer strategic guidance, enabling legal professionals to make more informed decisions. In addition, regulatory frameworks are constantly evolving, and organizations must ensure compliance with various laws and regulations, creating demand for AI-based solutions for assistance in monitoring regulatory changes, assessing compliance risks, and ensuring adherence to legal requirements. The continuous advancements in natural language processing, machine learning, and data analytics have further propelled legal systems' capabilities, fueling the market's growth. Such technologies enable accurate data extraction, semantic understanding, and context-aware decision-making, making legal solutions more powerful and effective.

The legal industry has witnessed improvement in document analysis and review processes with the help of AI. AI-powered systems can identify key clauses, analyze document structure, and flag potential risks or discrepancies. For instance, E-discovery, the process of identifying and collecting electronic data for legal proceedings, has been revolutionized by AI technology to efficiently analyze and process large volumes of electronically stored information (ESI), enabling legal firms to ensure faster and more accurate data identification preservation and review. Predictive coding and machine learning algorithms assist in prioritizing and categorizing documents based on their relevance to legal cases.

There is a rapidly growing trend of using virtual assistants and chatbots powered by AI technology in legal settings to provide quick access to legal information, answer common legal questions, and assist with basic legal inquiries. These AI-powered assistants can interact with users, understand their queries, and provide relevant responses, improving client service and efficiency. The technology is also being employed to address cybersecurity and compliance challenges. AI-powered systems can detect and prevent potential data breaches, monitor regulatory changes, assess compliance risks, and ensure adherence to legal and privacy requirements. The companies are introducing innovative legal AI products, further creating lucrative growth opportunities for the market. For instance, in March 2023, Casetext, the legal AI company, launched CoCounsel, the AI legal assistant. CoCounsel leverages the most advanced large language model from OpenAI, which Casetext has customized for legal practice.

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Legal AI Market Report Highlights 

• The solutions segment accounted for the largest market share in 2024 driven by the increased adoption of legal AI software for handling the legal department's work, growing demand for AI-based software solutions to automate and accelerate the routine, repetitive aspects of legal practices.

• The legal research segment dominated the market in 2024, owing to the growing adoption of AI-powered NLP tools to understand and interpret complex legal language, making it easier to find relevant case law, statutes, and regulations, and the rising need to analyze vast amounts of legal data to predict case outcomes, identify potential risks, and optimize legal strategies.

• The law firms segment dominated the market in 2024, owing to increased spending on AI technology by law firms.

• The machine learning and deep learning technology segment accounted for the largest market share of over 63% in 2024, owing to rising adoption of ML and DL to develop sophisticated algorithms that can analyze large volumes of legal data, extract insights, and automate various legal processes.

Legal AI Market Segmentation

Grand View Research has segmented the global legal AI market on the basis of component, technology, application, end use, and region:

Legal AI Component Outlook (Revenue, USD Million, 2018 - 2030)

• Solution

  • Cloud-based

  • On-Premises

• Services

  • Consulting Services

  • Support Services

  • Others

Legal AI Technology Outlook (Revenue, USD Million, 2018 - 2030)

• Natural Language Processing Technology

• Machine Learning and Deep Learning Technology

Legal AI Application Outlook (Revenue, USD Million, 2018 - 2030)

• E-Discovery

• Legal Research

• Analytics

• Compliance and Regulatory Monitoring

• Document Drafting and Review

• Contract Management

• Legal Chatbots

• Others

Legal AI End Use Outlook (Revenue, USD Million, 2018 - 2030)

• Law Firms

• Corporate Legal Departments

• Others

Legal AI Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Rest of Europe

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • South Korea

  • Rest of Asia Pacific

• Latin America

  • Brazil

  • Argentina

  • Rest of Latin America

• Middle East & Africa

  • UAE

  • Saudi Arabia

  • South Africa

  • Rest of MEA

List of Key Players of Legal AI Market

• Casetext Inc.

• CosmoLex Cloud, LLC

• Docusign, Inc.

• Everlaw, Inc.

• Filevine, Inc.

• IBM Corporation

• Icertis, Inc.

• Knovos LLC

• LegalSifter

• LexisNexis

• Luminance Technologies Ltd.

• LAWYAW (Mystacks, Inc.)

• Neota Logic Inc.

• Open Text Corporation

• Practice Insight Pty Ltd (WiseTime)

• Themis Solutions Inc. (Clio)

• Thomson Reuters Corporation

• TimeSolv Corporation

• Veritone, Inc.