Legal technology sectors brace themselves for an expansion in market value, as an analysis from Gartner Inc. predicts the legal tech market to reach $50 billion by 2027. This is a notable growth, up from around $23 billion in 2022, and is reportedly fueled by the recent generative artificial intelligence boom. Bloomberg Law shared this development, emphasizing how technology is set to take up an increasing share of in-house legal spend.
The momentum behind this growth comes from continued law firm spending on AI-driven legal tech, coupled with in-house legal departments allocating a larger portion of their budgets to such technologies. The figures disclosed by Gartner Inc. come from a late-2023 client analysis, with the 2022 market size derived from additional undisclosed sources.
Chris Audet, the chief of research in Gartner’s legal, risk, and compliance leaders practice, commented on the trend, drawing attention to the generative AI boom that’s yet to reach its peak. Alongside advancements in AI-driven legal analytics, the increase in the usage of workflow tools and access to premium legal and business news further supports this expansion.
This blending of cutting-edge AI technologies into legal operations is transforming how legal services are delivered, thereby increasing the market viability for legal tech. However, with the law sector being traditional in nature, the rapid adoption of technology signals a fundamental shift in attitudes and operations.
While the projections are promising, they do call for a reassessment of how legal professionals adapt to and integrate these technologies. For law firms and legal departments aiming to ride this wave, staying updated and investing wisely in AI and related technologies can pave the way to staying competitive in this ever-evolving market.