MARKET OVERVIEW- ASIA-PACIFIC LEGAL AI SOFTWARE MARKET
Legal AI software is used in the legal profession to automate processes, create forms, and to access court databases and other related applications. It basically helps to manage, consolidate, share, and protect information. It also serves other administrative functions including marketing, records management, case management, and the prevention of conflicts of interest. It can help reduce the risk of mistakes and provide a more organized and efficient workflow for handling legal matters. An increasing number of litigations across the legal industry has led to a rise in adoption of AI technology in several Asian countries. It is key factor driving the growth of the market. Furthermore, technological advancements in AI software are anticipated to provide lucrative growth opportunities for key players operating in the market.
MARKET DRIVERS
The growth of the market is driven by the rise in the number of litigations across the region. According to a 2021 report by US-based law firm White & Case, there has been rapid growth in climate lawsuits in the Philippines, South Korea, and Japan over the past two years. There has been an increase in the number of cases in Singapore’s highest court over the years, with 50 per cent more Court of Appeal cases being heard in 2019 compared with 2013. According to Norton Rose Fulbright’s 2020 Litigation Trends Survey, 31 percent of corporations reported an increase in commercial and labor disputes as a direct result of COVID-19. A study from an Indian Judicial Institute found that more prosperous states in India have higher civil litigation per capita, and legal cases within these prosperous states might have plateaued (or decreased) in recent years because of a judicial backlog. Thus, the rise in the number of litigations is expected to drive demand for AI software to increase the efficiency of case handling. Also, the adoption of AI technology is increasing rapidly and legal departments. It is expected to positively impact the growth of the market over the forecast period.
MARKET OPPORTUNITIES
An increasing demand for cost reduction in legal framework is expected to offer significant opportunities for the growth of the market over the forecast period. According to a report by professional services firm Ernst & Young (EY), 78% of companies plan to reduce their legal function costs in the next two years, with 20% of firms outlining cutbacks of up to a tenth of current legal fees. Thus, a rise in demand for cost reduction in legal sector is expected to contribute to the growth of the market,
MARKET RESTRAINTS
The high cost involved with the AI software is expected to have a negative impact on the growth of the market. Also, lack of awareness regarding the use of AI software among law firms is anticipated to restrain market growth.
MARKET GROWTH CHALLENGES
The lack of awareness about innovative and advanced applications of AI Software devices is expected to pose a key challenge for growth. Furthermore, the COVID-19 pandemic has emerged as a major challenge for the growth of the market. Also, the lack of investments in the judiciary among the underdeveloped nations is expected to act as a major challenge for the growth of the market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the Asia-Pacific Legal AI Software market including, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. An increase in adoption of AI technology has led to a rise in demand for legal AI software, and therefore, the market is expected to witness growth at a specific CAGR from 2023-2029.
ASIA-PACIFIC LEGAL AI SOFTWARE MARKET SEGMENTAL OVERVIEW
Asia-Pacific Legal AI Software market comprises of different market segments like component, deployment type, organization size, end-users and country.
ASIA-PACIFIC LEGAL AI SOFTWARE MARKET BY COMPONENT
On the basis of component, the Asia-Pacific Legal AI Software market consists of key segments like
The solutions followed by the services segment is expected to gain a major share of the market over the forecast period. Under the solution segment the legal AI software offers eDiscovery, contract management, case prediction, end point security, compliance and other solutions. Law firms spend a large amount of time in the contract review process to analyze various risks. AI is enhancing contract assessment and management services. For instance, Cyril Amarchand Mangaldas, has partnered with Canadian AI helper Kira Systems to use AI for contract analysis and evaluation. Thus, the rise in usage of advanced AI software solutions like contract management is expected to fuel the growth of the segment.
ASIA-PACIFIC LEGAL AI SOFTWARE MARKET BY DEPLOYMENT TYPE
By deployment type, the Asia-Pacific Legal AI Software market includes segments like
The on-premise segment is expected to lead the market over the forecast period. The legal AI software deals with the massive amount of confidential data daily, and it is important to keep that data secure. Therefore, several organisations are using the on-premise deployment as it offers complete security control for different users.
Also, the cloud-based software is expected to witness high growth over the estimated time period. Reducing expenses is essential in any business model and every cloud-based system is able to benefit from this factor alone. Thus, cost-effectiveness provided by the cloud-based software is expected to drive the growth of the segment.
ASIA-PACIFIC LEGAL AI SOFTWARE MARKET BY ORGANIZATION SIZE
By organization size, the Asia-Pacific Legal AI Software market includes segments like
- Large organizations
- Small and medium-sized organizations
The large organization segment is expected to dominate the market over the forecast period. Large enterprises are more feasible to adopt the advanced technologies than small and medium scale industries. Also, the requirement of AI software is higher in large organization than in small and medium scale industries
ASIA-PACIFIC LEGAL AI SOFTWARE MARKET BY END-USER
The Asia-Pacific Legal AI Software market finds major end-users like
- BFSI
- Healthcare
- IT & telecom
- Media and entertainment
- Government
- Others
The BFSI segment is expected to lead the market during the forecast period. An increasing demand for Legal AI Software in banks and financial institutions due to a rise in the number of financial disputes and lawsuits is a major factor which is expected to drive the growth of the segment.
The government segment is expected to witness high growth over the estimated time period. An increase in number of lawsuits involved in local and federal government is a major factor driving the growth of the segment.
ASIA-PACIFIC LEGAL AI SOFTWARE MARKET BY COUNTRY
The Asia-Pacific Legal AI Software market is studied for the following countries:
- China
- India
- Japan
- Rest of Asia-Pacific
China is expected to dominate the market over the forecast period. Technological advancements in AI software along with a rise in the adoption of AI, are key factors driving the growth of the market in the region. Also, the launch of innovative software solutions are expected to contribute to the growth of the market.
India is expected to witness high growth over the forecast period. Rise in number of litigations along with rise in use of technologically advanced solutions are key factors driving the growth of the market in the region.
COVID-19 IMPACT ANALYSIS ON THE ASIA-PACIFIC LEGAL AI SOFTWARE MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors with regard to the Legal AI Software market. The report involves an exclusive study on COVID-19 impact analysis. In addition, the report also includes a complete analysis of changes in the Asia-Pacific Legal AI Software market, expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of pandemics on Asia-Pacific economies, international trade, business investments, GDP, and the marketing strategies of key players present in the market.
COVID-19 has impacted every aspect of life. Many organizations remained shut while others scaled down their operations or put their expansion plans on hold as they survived the unpredictable crisis. The outbreak of the COVID-19 pandemic resulted in nationwide lockdowns, and various stringent lockdowns were imposed by the governments of most nations across the globe The pandemic has negatively impacted the growth of the market as many law firms were closed during the pandemic. However, due to the pandemic situation, many law firms have started operating online and also, court proceeding were conducted online. Thus, a rise in the utilization of AI software for increasing productivity and efficiency is expected to drive the demand for legal AI software in the upcoming years.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the Asia-Pacific Legal AI Software market is primarily focused on expanding the growth of legal AI software industry in Asia-Pacific with new product innovation, business expansion, and the increasing presence of a range of service providers operating in legal AI software sector has led to the growing demand for the market. Besides, the market offers a range of products in different applications to fulfil the requirements of consumers, which is further contributing to healthy growth in the market.
The key players studied in the market are
- IBM (US)
- OpenText (US)
- Thomson Reuters (US)
- Veritone (US)
- ROSS Intelligence (US)
- (US), LexisNexis (US)
- Neota Logic (US)
- Everlaw (US)
- Legalsifter (US)
- Pensieve (India)
- Cognitiv+ (UK)
- Casetext (US)
- Klarity (US)
- Omni Software Systems (US)
- Nalanda Technology (UK)
- LawGeex (Israel)
- Kira (US)
- CaseMine (India)
RECENT DEVELOPMENT:
December 2022: Tokyo-based legal technology startup LegalOn Technologies, hasd announced its expansion into the U.S. Founded in 2017, LegalForce, has been providing AI-run contract review software supported with legal guidance content to law firms and corporations in Japan since launching its first product in 2019.
November 2022: Brainspace announced that Intellectual Data, an eDiscovery service provider in Korea, will be integrating Reveal’s AI-powered eDiscovery, review and investigations platform – Reveal 11 – onto its suite of enterprise cloud services for legal and corporate entities throughout the region.
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