Legal AI Software Market

The research methodology for the global legal AI software market report involved the use of extensive secondary sources and directories, as well as various reputed open-source databases, to identify and collect information useful for this technical and market-oriented study. In-depth interviews were conducted with various primary respondents, including key opinion leaders; subject matter experts from LegalTech companies, law firms, corporate legal departments and law enforcement agencies; high-level executives of multiple companies offering legal AI software & services; and industry consultants to obtain and verify critical qualitative and quantitative information and assess the market prospects and industry trends.

Secondary Research

In the secondary research process, various secondary sources were referred to for identifying and collecting information for the study. The secondary sources included annual reports; press releases and investor presentations of companies; white papers, certified publications such as Journal of Artificial Intelligence Research, MIT Computational Law Report, Harvard Journal of Law & Technology; and articles from recognized associations and government publishing sources including but not limited to High-Level Expert Group on AI, International Association for Artificial Intelligence and Law (IAAIL), The Stanford Center for Legal Informatics, International Legal Technology Association (ILTA), and European AI Alliance (EAI).

The secondary research was used to obtain key information about the industry’s value chain, the market’s monetary chain, the overall pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from the market and technology-oriented perspectives.

Primary Research

In the primary research process, a diverse range of stakeholders from both the supply and demand sides of the legal AI software ecosystem were interviewed to gather qualitative and quantitative insights specific to this market. From the supply side, key industry experts, such as chief executive officers (CEOs), vice presidents (VPs), marketing directors, technology & innovation directors, as well as technical leads from vendors offering legal AI software & services were consulted. Additionally, system integrators, service providers, and IT service firms that implement and support legal AI software were included in the study. On the demand side, input from IT decision-makers, infrastructure managers, and legal department/law firm heads was collected to understand the user perspectives and adoption challenges within targeted industries.

The primary research ensured that all crucial parameters affecting the legal AI software market—from technological advancements and evolving use cases (eDiscovery, legal research & analytics, report generation, legal contract drafting & review etc.) to regulatory and compliance needs (GDPR, CCPA, Europe AI Act etc.) were considered. Each factor was thoroughly analyzed, verified through primary research, and evaluated to obtain precise quantitative and qualitative data for this market.

Once the initial phase of market engineering was completed, including detailed calculations for market statistics, segment-specific growth forecasts, and data triangulation, an additional round of primary research was undertaken. This step was crucial for refining and validating critical data points, such as legal AI offerings (legal AI software and legal AI services), industry adoption trends, the competitive landscape, and key market dynamics like demand drivers (explosive growth in eDiscovery requirements, surge in adoption of NLP in legal operations, government support for judicial efficiency, proliferation of ai-driven knowledge management systems), challenges (adapting AI to non-standardized legal processes, complexities in adapting AI for litigation-specific applications), and opportunities (emergence of virtual hearings and online dispute resolution, real-time sentiment analysis in courtrooms, expansion of AI-driven arbitration platforms).

In the complete market engineering process, the top-down and bottom-up approaches and several data triangulation methods were extensively used to perform the market estimation and market forecast for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to record the critical information/insights throughout the report.

The following is the breakup of primary profiles:

Note: Three tiers of companies are defined based on their total revenue as of 2024; tier 1 = revenue more than USD 500 million, tier 2 = revenue between USD 100 million and 500 million, tier 3 = revenue less than USD 100 million

Source: MarketsandMarkets Analysis

To know about the assumptions considered for the study, download the pdf brochure

Market Size Estimation

To estimate and forecast the legal AI software market and its dependent submarkets, both top-down and bottom-up approaches were employed. This multi-layered analysis was further reinforced through data triangulation, incorporating both primary and secondary research inputs. The market figures were also validated against the existing MarketsandMarkets repository for accuracy. The following research methodology has been used to estimate the market size:

Data Triangulation

After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.