Are AI, Automation, and Data Analytics Identifying Legal Complications for businesses?


Arizton’s recent market research report on Alternative Legal Service Providers Market in US - Industry Outlook and Forecast 2020-2025 provides comprehensive industry analysis, trend forecasts, and competitive analysis. The study includes insights on segmentation by Providers (new law companies, captive LPO, staffing/recruiting and contract lawyer companies, and others), Services (eDiscovery, investigation and litigation support, contract management, document review and coding, legal research, regulatory risk and compliance, and others), End-user (law firms and corporations), and Geography (US).

The alternative legal service providers market in US expected to grow at a CAGR of over 23% during the period 2019–2025.

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Alternative legal service providers offer several services that are traditionally offered by law firms. These services include discovery and e-discovery, contract staffing and lawyers, investigation support and legal research, document reviews, paralegals, contract management, litigation support, and IP management. They leverage low overheads and technology to offer services with added advantages, including efficiency, simplicity, speed, and flexibility. These businesses typically pick up and enhance elements of legal processes to improve performance. Alternative service delivery providers are taking on a multidisciplinary approach. As legal players increasingly dabble in the complex infrastructure, legal assistants, junior lawyers, and paralegals have found an elevated stature in the market in terms of demand to handle associated work.

The leading drivers and trends driving the growth of the alternative legal service providers market in US are discussed below:

Growth of Legal Departments

Around one-third businesses spend 32% of time performing legal tasks on low-value/routine compliance. The growth of data has increased the need for legal teams to become multi-skilled and work in several disciplines.  They are tasked with solving a myriad strategic and managerial challenges involving law, finance, business, and technology.  General Counsel dealings are growing in complexity and size and constituting a huge set of responsibilities in the space of data management, regulatory, brand protection, data management, cybersecurity, among others. They are doing all this simultaneously with managing new and already prevailing risks while also navigating the complexity and speed of an increasingly globalized business climate.

High Adoption of Technology

In 2018, almost 8 times more law departments looked to implement Artificial Intelligence (AI) solutions compared to the previous year. Over 7% more law departments stated that they want to implement AI technology by 2020. Alternative legal service providers are finding their footing in traditional legal service delivery among support-seeking law firms and legal departments. These companies themselves are viewing technology as an accelerated route to offer more value to the legal service space, thereby increasingly integrating new technology in their offerings. This situation is increasingly playing out, especially in the in-house legal territory, which is largely edging toward employing alternative legal service providers to help with selection and implementation of technology. As law departments strive to gain efficiencies and agility, they are expected to use alternative legal service providers technology offerings, driving their growth in the market. However, the industry faces a number of challenges with the use of technology. And the main challenge is lack of interest/resistance among lawyers to utilize these systems and solutions.

Increased Focus on Service Delivery

Law is being clearly differentiated in terms of legal practice (which includes certain regulated activities that require licensed lawyers requiring knowledge, skills, and judgment) to service delivery (requiring process, other professionals, and technology). The power has shifted in the hands of the clients to decide which legal job necessitates the use of a lawyer and which does not (those that can be accomplished by a paralegal, a legal professional or a machine). This is putting a spotlight on AI, automation, analytics, and data, which can help businesses identify legal complications long before they become more intense.  Law companies are increasingly handling non-regulated legal work that was once ruled by law firms. Corporate legal departments have been increasingly open to expanding their resources both in technological and human paradigms that go beyond the labor-intensive lawyer-based approach to solving justice challenges. Legal tasks are being unbundled and the function of lawyers, value, skills, the cost, the delivery model, and the other resources are experiencing the winds of change.

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Allen & Overy, Axiom, Elevate, and UnitedLex are identified as prominent vendors in the alternative legal service providers market in US.

The complete overview of the latest market research report on alternative legal service providers market in US by Arizton is now available.

The report offers a detailed study of major trends, drivers, challenges and provides market sizing and forecast for major geographical regions and key countries.

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