MARKET OVERVIEW- EUROPE LEGAL AI SOFTWARE MARKET
Over the past few years, artificial intelligence (AI) has grown exponentially, and numerous industries have incorporated AI programs into their operations. In the legal sector, AI software is used to automate processes, create forms, and access court databases and other related applications. It is primarily used for document processing and classification for a wide range of matters, including due diligence, document and contract review, compliance, contract management, knowledge management and deal analysis. An increase in number of litigations across Europe has led to a rise in the adoption of AI technology in the legal sector. It is key factor driving the growth of the market. Furthermore, technological advancements in AI software and the launch of innovative AI software solutions 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 the European Class Action Report, the number of class actions filed in Europe increased by over 120% between 2018 and 2020. Class action lawsuits against the technology sector are increasing dramatically, with 15 times the number of claims filed in 2020 as in 2017 (i.e. growth of 1400%). Data protection claims grew 11 times (i.e. by 1000%) between 2016 and 2020. More than 500 corruption cases and litigations have been registered at Eurojust during the past six years. Compared with the 78 cases registered at the Agency in 2016, the number of cases rose to 112 in 2021, despite the COVID-19 pandemic. Following the Paris Agreement on climate change there has been an increase in climate litigation cases, rising from 834 between 1986 and 2014 to 1,841 between 2014 to 2021. Thus, the rise in the number of litigations is expected to drive the 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 create promising growth opportunities for key players in the market.
MARKET OPPORTUNITIES
An increasing demand for cost reduction in the legal framework is expected to offer significant opportunities for the growth of the market over the forecast period. According to the 2021 EY Law Survey, 88% of General Counsels are eager to minimize the overall legal department costs within the next four years. The survey also suggested that continuously monitoring contract risks is a bit struggle for GCs. While 71% of respondents noted that they can’t flag contracts “for deviations from standard terms,” and 78% stated “they don’t systematically track contractual obligations.” Thus, a rise in demand for cost reduction in the 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 the 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. Also, stringent regulations among the European nations is expected to negatively impact the growth of the market. For instance, high-risk AI systems will be clearly and thoroughly regulated in the European Union with the new Artificial Intelligence Act, which is anticipated to be finalized in 2022. It 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 Europe 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 the 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.
EUROPE LEGAL AI SOFTWARE MARKET SEGMENTAL OVERVIEW
Europe Legal AI Software market comprises of segments like component, deployment type, organization size, end-users and country.
EUROPE LEGAL AI SOFTWARE MARKET BY COMPONENT
On the basis of component, the Europe Legal AI Software market consists of key segments like
The solutions provided by the services segment are 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 analysing various risks. AI is enhancing contract assessment and management services. Thus, rise in usage of advanced AI software solutions like contract management is expected to fuel the growth of the segment.
EUROPE LEGAL AI SOFTWARE MARKET BY DEPLOYMENT TYPE
By deployment type, the Europe 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.
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, the cost-effectiveness provided by the cloud-based software is expected to drive the growth of the segment.
EUROPE LEGAL AI SOFTWARE MARKET BY ORGANIZATION SIZE
By organization size, the Europe Legal AI Software market includes segments like
- Large organizations
- Small and medium-sized organizations
The large organizations 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 for AI software is higher in large organizations than in small and medium scale industries
EUROPE LEGAL AI SOFTWARE MARKET BY END-USER
The Europe 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 rise in 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 involving local and federal government is a major factor driving the growth of the segment.
EUROPE LEGAL AI SOFTWARE MARKET BY COUNTRY
The Europe Legal AI Software market is studied for the following countries:
- Germany
- U.K
- France
- Italy
- Spain
- Rest of Europe
The U.K is expected to dominate the market over the forecast period. An increase in the number of litigations in the U.K has led to a rise in the adoption of AI. It is a key factor driving the growth of the market in the region. According to the 2021 CMS European Class Action report, the U.K has seen particular growth in class actions in recent years. Areas of risk are: competition class actions; data protection class actions; product liability and foreign torts/environmental claims
Germany is expected to witness high growth over the forecast period. The rise in use of technologically advanced solutions is a key factor driving the growth of the market in the region. Also, the launch of innovative software solutions is expected to contribute to the growth of the market.
COVID-19 IMPACT ANALYSIS ON THE EUROPE 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 Europe 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 Europe economies, international trade, business investments, GDP, and marketing strategies of key players present in the market.
The COVID-19 pandemic is one of the greatest global humanitarian challenges affecting the world. The COVID-19 pandemic has been a surprising test for communities, businesses, and consumers causing economic hardship and widespread concern across the globe. It 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 court proceedings are also 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 Europe Legal AI Software market is majorly focused on expanding the growth of the legal AI software industry in Europe with new product innovation, business expansion, and the increasing presence of a range of service providers operating in the 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 further contributes 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:
March 2022: KPMG AG, an auditing, tax, and advisory firm in Germany, partnered with SirionLabs, a supplier of the AI-powered contract lifecycle management (CLM) product SirionOne. The goal of the cooperation is to speed up the digitalization of the full contract lifecycle for KPMG's clients, including supplier and client mandates.
March 2022: Anch.AI introduced its new ethical artificial intelligence (AI) platform to serve as a centralized location for organizations seeking responsible AI governance. With anch.AI, organizations can easily adopt liable AI solutions and gain control over their ethical AI risks while upholding regulatory compliance and conformity to ethical principles.
