MARKET OVERVIEW- NORTH AMERICA LEGAL AI SOFTWARE MARKET
Legal AI software includes programs specifically designed to assist lawyers and other legal professionals in their practice. It is being used in the legal industry by assisting with document processing and classification for a wide range of matters, such as due diligence, document and contract review, compliance, contract management, knowledge management and deal analysis. It can streamline and automate various tasks, helping legal professionals be more efficient and effective in their work. It can also 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 the adoption of AI technology in countries like the United States and Canada. 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 data provided by the law firm Seyfarth Shaw, more than 11,400 people filed an ADA Title III lawsuit in 2021—a 4 percent increase from 2020 and a 320 percent increase since 2013. Seyfarth Shaw estimates that California's Unruh Civil Rights Act contributed to the high number of filings in the state. In 2020, more than 2,500 lawsuits were filed in federal court claiming websites were not designed to be accessible to people with disabilities, in violation of Title III. Thus, a 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. This is a key factor that is anticipated to fuel the growth of the market. The AI linked legal department can provide higher accuracy and reduce the time of processes. It is expected to positively impact the growth of the market over the forecast period.
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 a 2020 report from the Corporate Legal Operations Consortium (CLOC), 61 cents of every dollar spent on legal costs in 2020 went to external legal costs–a 15-cent increase from 2018. This increase, combined with the year’s novel challenges, has many legal departments looking for new ways to control legal expenses beyond reviewing line items which has proven to be ineffective for many companies. 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 as a key challenge for the growth. Furthermore, the COVID-19 pandemic has emerged as a major challenge for the growth of the market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the North America 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
NORTH AMERICA LEGAL AI SOFTWARE MARKET SEGMENTAL OVERVIEW
North America Legal AI Software market comprises of different market segments like component, deployment type, organization size, end-users and country.
NORTH AMERICA LEGAL AI SOFTWARE MARKET BY COMPONENT
On the basis of component, the North America 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, a rise in the usage of advanced AI software solutions like contract management is expected to fuel the growth of the segment.
NORTH AMERICA LEGAL AI SOFTWARE MARKET BY DEPLOYMENT TYPE
By deployment type, the North America 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 grow at a high rate 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.
NORTH AMERICA LEGAL AI SOFTWARE MARKET BY ORGANIZATION SIZE
By organization size, the North America 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 of AI software is higher in large organizations than in small and medium scale industries
NORTH AMERICA LEGAL AI SOFTWARE MARKET BY END-USER
The North America 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 the 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 involving local and federal government is a major factor driving the growth of the segment.
NORTH AMERICA LEGAL AI SOFTWARE MARKET BY COUNTRY
The North America Legal AI Software market is studied for the following countries:
- United States
- Canada
- Mexico
The United States is expected to dominate the market over the forecast period. Increase in adoption of AI, is a key factor which has led to rise in use of AI software in legal settings. This is a major factor driving the growth of the market in the region. Also, technological advancements are expected to contribute to the growth of the market. For instance, in March 2022, CobbleStone Software declared the wide availability of CobbleStone Contract Insight, a suite of contract lifecycle management (CLM) software, in the SAP Store, an online store for SAP and partner products. CobbleStone ContractInsight is an AI-powered CLM platform that connects with SAP S/4HANA to offer customers contract lifecycle management, contract capture, and legal reviews. The company is a partner in the SAP PartnerEdge program.
Also, Canada is expected to witness high growth over the forecast period. Rise in number of litigations along with technological advancements is a key factor driving the growth of the market in the region.
COVID-19 IMPACT ANALYSIS ON THE NORTH AMERICA 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 North America 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 North America economies, international trade, business investments, GDP, and the marketing strategies of key players present in the market.
The outbreak of COVID-19 has negatively impacted the growth of the market as many law firms were closed during the pandemic. However, due to the emergence of the pandemic, many law firms have started operating online and court proceedings are also conducted online. The 2020 CARES Act authorized federal judges to use video and telephone conferences during the COVID-19 emergency, including, with the defendants' consent, in certain criminal proceedings. In response, the Judicial Conference of the United States issued an exception, for the duration of court-ordered emergency procedural orders, to the federal prohibition of cameras and broadcasting in federal court. Thus, due to 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 North America Legal AI Software market is primarily focused on expanding the growth of the legal AI software industry in North America 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 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:
January 2022: LinkSquares, declares the new AI capabilities of its pre-signing technology, LinkSquares Finalize. LinkSquares Finalize's AI-powered contract reviews enable legal teams and general counsel to automate checks, reveal important information from contracts, boost transactions, minimize risk, and reduce manual processes. By expanding LinkSquares' AI capabilities from Analyze, LinkSquares' post-signature tool, to Finalize, the company targets to offer the first end-to-end AI-powered contract lifecycle management platform.
June 2021: Thomson Reuters introduced HighQ Contract Analysis, a contract review and analysis tool that provides concise answers to specific questions sought after by legal experts. HighQ Contract Analysis combines machine learning and pre-trained models to assist lawyers in enhancing efficiency, reducing risk, and speeding up the contract review process.
