The size of the global legal AI market was USD 1.45 billion in 2024 and is expected to register a CAGR of 17.3% during the forecast period from 2025 to 2030. The industry’s growth can be due to the increase in demand for legal applications automation in eDiscovery, case prediction, regulatory compliance, and contract review and management, among others. Law firms and legal departments needed to handle tons of data and documents. Artificial intelligence (AI)-based methodology’s arrival revolutionized legal firms, legal departments, and governmental efforts by mechanizing activities including review of contracts, legal research, due diligence, and analysis of documents.
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Component Insights
The solutions segment held the highest market share in 2024 due to the rising use of legal AI software to manage the work of the legal department, expanding demand for AI-powered software solutions to automate and speed up the mundane, repetitive legal practice tasks. In addition, the coming of advanced software solutions involving data analytics, machine learning, predictive modeling, and automation is also enhancing the need for legal AI solutions, thus aiding the development of this segment.
The services segment is projected to register the highest CAGR between 2025 and 2030 due to the growing demand for software integration and consulting services, growing demand for constant upgrades and maintenance, and increasing demand for support services to help it be properly implemented and used.
Application Insights
The legal research segment was the market leader in 2024, due to increasing use of AI-based NLP tools for interpreting and understanding complex legal text, enabling quick identification of useful case law, statutes, and regulations, and the increasing demand for analyzing enormous legal data for case outcome predictions, risk detection, and improving legal strategies. Virtual assistants and chatbots based on AI can offer tailored legal counsel to clients, responding to queries and offering advice. AI can make most time-consuming processes automatic, minimizing the use of human labor and decreasing costs. In addition, AI can scan and analyze large sets of legal papers quickly, like contracts, discovery documents, and regulatory filings, to detect main points and potential issues.
End Use Insights
The law firms segment dominated the market in 2024, owing to increased spending on AI technology by law firms. The AI’s ability to process and analyze vast amounts of legal data with speed and accuracy has proven immensely valuable to law firms, leading to their substantial growth in the market. In addition, the demand for AI in law firms is driven by its benefits, such as improved efficiency, cost-effectiveness, enhanced decision-making, and better client service.
The segment of the corporate legal department is anticipated to experience significant growth between 2025 and 2030. This growth is fueled by a number of factors, such as a growing need for legal AI solutions for contract review and lifecycle management, which include organizing, tracking, and negotiating contracts. There is also a growing need to analyze legal publication data, social media, and client feedback to derive insights into market trends and competitive intelligence. In addition, there is an increasing need to report on litigation trends, case tactics, and court behavior.
Technology Insights
The deep learning and machine learning technology segment held the highest market share of more than 63% in 2024 due to increasing use of ML and DL to create advanced algorithms that can process large amounts of legal data, derive insights, and automate legal processes. ML algorithms have processed numerous legal documents, such as case law, statutes, and regulations. Growing adoption of ML technology in legal research platforms has also contributed significantly to the growth of this segment. In legal research, ML facilitates sophisticated search features and context-based analysis, allowing lawyers to retrieve relevant legal information and enhance their research effectiveness effectively.
U.S. Legal AI Market Trends
The U.S. legal AI market was the leader in 2024. Market growth is being driven by increased demand for legal AI solutions by corporate legal departments and law firms, increasing usage of legal AI solutions for legal research, predictive analytics, document review, and contract analysis, fast-growing End Uses in the legal AI market, increasing demand for legal AI solutions like chatbots, and rising adoption of cloud-based legal AI solutions.
Europe Legal AI Market Trends
The European legal AI market will expand at a significant CAGR of 17% during 2025-2030 with the growth impelled by advancing artificial intelligence, machine learning, and natural language processing technologies. The legal scene in Europe has complex laws, regulations, and compliance needs among various jurisdictions. The law firms and legal units in the region are facing the pressure to maximize operational efficiency while lowering costs. The AI technology assisted law firms within the region to streamline routine work, including document review, contract examination, and legal research, freeing up time and resources for legal professionals.
Asia Pacific Legal AI Market Trends
Asia Pacific legal AI market is expected to grow at a CAGR of 20% over the forecast period. The growth is due to reasons such as favorable regulatory environment and strong emphasis on digital transformation, increasing deployments of legal AI solutions, increasing legal tech ecosystem with emphasis on AI-driven solutions for contract analysis and e-discovery applications, and accelerated adoption of legal AI solutions into contract review and intellectual property analysis.
Japan legal AI industry is likely to expand at an aggressive pace during the next several years as the emphasis on respecting ethical values and data privacy gets stronger, application of legal AI tools for examining contracts, searching for law more efficiently, and e-discovery purposes increases, significant government steps towards creating an overall regulatory infrastructure for AI unfold, and collaborations among law firms, technology, and academic institutes.
Key Legal AI Company Insights
A few of the major companies that are operational in the industry include IBM Corporation and Thomson Reuters Corporation among others.
IBM Corporation is a company that offers legal AI solutions and services. It is operational in four segments including Software, Consulting, Infrastructure, and Financing. Legal AI offerings are provided under the Software segment comprising capabilities that assist in making consumption of data easy through data fabric and data management, optimizing management of the lifetime, and achieving higher predictive quality through business analytics. IBM data and AI can create sustainable businesses that are resistant to disruptions as well as aid in intelligent asset and supply chain management with the emphasis on environment intelligence. Its product line consists of offerings like Watson Discovery, Contract Lifecycle Management Solutions, and LegalMation.
Thomson Reuters Corporation is a legal AI solutions & services provider. The firm also offers information, software, and services to tax and accounting professionals, such as CFOs, CPAs, and governments. The firm offers information, software, and services to legal professionals, such as law firms, corporate legal departments, and governments. Its products integrate sophisticated software and expertise aimed at providing these professionals with the data, intelligence, and solutions they need to make sound decisions. It has five reportable customer segments, which are Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. The company’s Legal Professionals segment provides workflow and research products that focus on intuitive legal research driven by state-of-the-art technologies like generative AI, as well as embedded legal workflow solutions that unify content, tools, and analytics.
Casetext Inc. and Luminance Technologies Ltd. are some of the new entrants in the legal AI space.
Casetext Inc. is a legal AI solutions provider. It is a top legal tech firm that utilizes cutting-edge artificial intelligence to transform legal analysis and research. The firm offers its legal AI solutions to various markets, including solo and smaller firms, large firms, in-house, litigators, transactional lawyers, and tax experts. Its product line consists of AI-Powered Legal Research, Document Analysis and Summarization, Predictive Coding, Citation Analysis, and CoCounsel.
Luminance Technologies Ltd. is a legal AI solutions provider. The company has a top-rated AI platform tailored for legal professionals. Using a proprietary LLM, Luminance’s AI reads and understands legal documents written in different languages. Today, Luminance is used by over 700 organizations around the world, including all Big Four professional consulting firms, more than a quarter of the global top 100 law firms, and multinational enterprises like Koch, Inc., Hitachi, Liberty Mutual Insurance Company, and Avianca. Luminance AI empowers lawyers in over 70 countries, from large conglomerates to small practices.
Key Legal AI Companies:
The following are the leading companies in the legal AI market. These companies collectively hold the largest market share and dictate industry trends.
- 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.
MIR has segmented the global legal AI market report based on component, technology, application, end use, and region:
- Component Outlook (Revenue, USD Million, 2018 – 2030)
- Solution
- Cloud-based
- On-Premises
- Services
- Consulting Services
- Support Services
- Others
- Solution
- Technology Outlook (Revenue, USD Million, 2018 – 2030)
- Natural Language Processing Technology
- Machine Learning and Deep Learning Technology
- 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
- End Use Outlook (Revenue, USD Million, 2018 – 2030)
- Law Firms
- Corporate Legal Departments
- Others
