Global Legal Software (Focus On Machine Learning) Market
Dublin, Sept. 06, 2022 (GLOBE NEWSWIRE) -- The "Legal Software (focus on machine learning) Global Market Report 2022, By Application, End User, Technology, Deployment Mode" report has been added to ResearchAndMarkets.com's offering.
The global legal software market is expected to grow from $0.33 billion in 2021 to $0.39 billion in 2022 at a compound annual growth rate (CAGR) of 16.6%. The change in growth trend is mainly due to the companies stabilizing their output after catering to the demand that grew exponentially during the COVID-19 pandemic in 2021. The market is expected to reach $0.63 billion in 2026 at a CAGR of 13.2%.
Increasing demand for intelligent business processes in law firms is driving the growth of machine learning market. Intelligent business process includes adoption of artificial intelligence (AI) or machine learning in the business processes. AI is the development of system that has the ability to perform tasks requiring human intelligence.
Software solutions are highly adopted in developed countries like the USA to achieve benefits, such as contract management and efficient legal data analysis. Machine learning helps legal firms and professionals to manage their huge data and derive insights from them. According to Legal Technology Survey Report by ABA Surveying, 35% of respondents from large firms with over 500 attorneys reported they used AI and 16% of respondents at firms with 100 or more attorneys were most likely considering an AI purchase. The growing demand to adopt machine learning in the law firms drives the market.
Machine learning market is restrained due to lack of awareness among law firms. Data, information and knowledge together constitute a vital business asset for law firms in decision making process. Law firms face an increasingly competitive market as large accounting firms are re-establishing their legal practices and reducing the amount of work available to the legal firms. According to survey by Bloomberg Law, only 24% of law firms use machine learning or AI indicating the knowledge gap an underuse of the technology. The lack of awareness thus hampers the growth of the market.
Many online platforms have been introduced that provide potential clients to connect with the lawyers for simple services that includes trademark registration, leases, registration and execution of wills, contracts and lease agreements, dishonouring of cheques, recovering suits, and consumer complaints. For instance, LegalZoom, a US based firms helps you find attorneys without any hourly fees and documents provided by this firm are accepted by courts and government agencies across all the 50 states. This trend in providing online service will drive the demand for legal software.
Legal software that includes artificial intelligence (AI) and machine learning (ML) are yet to be fully regulated by governing bodies in order to protect the confidential data involved in the processes. For instance, Indian government has set to regulate the development and implementation of AI. However, countries such as the USA are contemplating over the thought to regulate ML and AI as there could be a threat in legally constraining the ML or AI before it could fully be developed in practice.