Global | Legal & digital technology | 2017

 

5 trends on the legal tech market

In order to map the market of legal startups, we studied and analyzed the activity of 140 startups in 12 countries on 4 continents for a period of 8 months. This is a constantly evolving market. Our analysis sought to identify the different segments of the legal market that will be impacted by the use of technology. To this end, we analyzed a broad and representative sample, allowing us to grasp how the market works and to analyze future trends.

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1. BtoB trend

The growth of legal techs has been particularly dynamic since 2013 and is increasingly concentrated within the BtoB market.

 

2. The significance of “sharing” startups (35% of legal techs analyzed)

Information sharing was the initial need to have driven the development of startups, particularly via marketplaces dedicated to lawyers. This is a crowded segment whose maturity now seems established. Undergoing a process of consolidation on the most conventional niches, it is now developing in other directions.

 

3. Production of legal services by legal techs (54% of legal techs analyzed)

As things stand, legal techs have mainly developed on the niche of production of legal services. This segment is therefore now set to change dimension in order to embrace technology which is increasingly advanced as well as soft artificial intelligence. Interfaces will have chatbots, interactions between tools are giving rise to smart contracts, and securing information is being ensured by the blockchain.

 

4. The emergence of decision making services (11% of legal techs analyzed)

Although decision making services are still few and far between, they are attracting growing interest from practitioners and investors. The most appealing development concerns statistical analysis of past rulings and their statistical processing. The most important prospects are related to the transformation of structured texts (articles of law, jurisprudence, doctrine, etc.) into data. This evolution is made possible thanks to advances in artificial intelligence and one of its key aspects: machine learning.

 

5. Future developments
  • The legal techs able to benefit from the situation will be those that manage to focus on solving a problem by exploiting technology to a maximum and intermixing technologies.
  • Increased use of technology will require a rethink of the skills required within legal departments and law firms, going beyond legal and technical skills.
  • The legal techs will have to ensure transparency to enable legal experts and lawyers to appropriate the origin, processing and use of data.

This overview of the legal techs market is used by Day One in the context of digital audits conducted for legal departments and business law firms. Beyond startup SEO, which will be transformed in the coming years, our analysis focused on legal services and offers that are impacted by the digital transformation or will be in the future.

In the course of our analysis, we have endeavored to gain an understanding of a whole host of players, technologies and issues on the legal techs market. We were able to measure the inventory of market knowledge in concrete terms. Finally, this study was telling as regards future prospects and what the legal world can expect from appropriation of technology by startups in the next 5 years. The conclusions that we deliver in this study set out the main lessons learned from what we have observed and analyzed regarding the digital transformation of legal professions. All of these conclusions are now turned to full account by Day One team in most organizational consulting missions we perform as part of our work for legal departments or law firms.

 

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